Riyadh - Mubasher: Almarai has announced that the Board of Directors (BOD) has carried out a review of the five-year plan for the period 2018-2022 in its latest meeting.

The capital investment foreseen during the period is estimated to be SAR 12.5 billion, according to the company’s statement to the Saudi Stock Exchange (Tadawul).

Investments will focus on the replacement of existing assets; improvement of production capacities and capabilities in farms and manufacturing facilities; distribution and transportation facilities; extension of geographical footprint; the enhancement of innovation and product development capabilities.

“In its core businesses of Dairy, Juice and Bakery, Almarai will continue to execute its defined strategies and action plans expanding its market presence beyond its traditional retail channels,” the statement noted.

The plan forecasts a compound annual growth rate for sales approximately 7%, a reduction from last year plan. As a result, a particular focus on efficiency and cost optimization measures to provide Almarai appropriate resources to win in an increasing competitive environment and an increasing cost basis will be central themes for the next five years, the statement added.

As per the bourse filing, the Board of Directors also reviewed the performance of the Poultry category that will achieve a break-even this year, and the Infant Nutrition category that should also break-even by 2018.

For both business units the future plans should lead to a sustainable profitable situation for the coming years.

The performance of the Dairy and Juice businesses in Egypt and Jordan, managed through the Joint-Venture International Dairy and Juice- IDJ, had been affected by the situation in the region and particularly in Egypt, but the Board has confirmed its commitment to this venture.