Tanmiah reports 8% rise in Q1 2026 revenue as higher costs weigh on earnings

SAUDI ARABIA – Tanmiah Food Company reported an 8.0% year-on-year increase in first-quarter 2026 revenue, as sales growth in its agribusiness and restaurant operations helped offset difficult trading conditions across parts of its business portfolio.

The Saudi-based food producer said revenue for the three months ended March 31 reached SAR 731.2 million, equivalent to about US$194.9 million, compared to the same period last year, while earnings before interest, taxes, depreciation and amortisation fell 5.9% to SAR 88.5 million (US$23.6 million).

At the same time, the company stated that EBITDA margin declined to 12.1% from 13.9% recorded in the corresponding quarter of 2025 as rising operational expenses and weaker performance in parts of the animal feed and health segment affected profitability.

Fresh poultry sales volumes rose to 43.2 million birds during the quarter, representing an 8.6% increase from a year earlier, while average daily poultry production reached 604,000 birds.

In addition, revenue from the agribusiness segment grew 5.6% year on year, while restaurant operations posted a 42.2% increase during the period amid expansion campaigns and menu adjustments aimed at attracting more consumers.

The company added that it continued expanding production capacity through the commissioning process of new facilities and the addition of six farms to improve utilisation rates ahead of the planned launch of a new hatchery and feed mill in the second half of 2026.

However, higher diesel prices, increased utility bills, rising distribution costs, and additional financing expenses associated with new assets and restaurant outlets contributed to a decline in profitability, leading the company to record a net loss for the quarter.

Chief Executive Officer Zulfiqar Hamadani said the company maintained operations despite geopolitical disruptions and supply chain challenges in March, adding that management continued to focus on operational efficiency, cost management and asset optimisation.

The company also stated that it expects conditions to gradually improve during the rest of 2026 as supply and demand dynamics in the market begin to stabilise, while management plans to continue focusing on higher-margin products, efficiency measures, and returns from recent investments.

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