The board of Almarai Co., the largest dairy producer in the Middle East, has approved its five-year strategic plan with investments exceeding 18 billion Saudi riyals ($4.80 billion) in line with the government’s plan to achieve food security.

The strategy aims to enhance growth, maximise sales and improve financial performance across multiple segments, the company said in a statement to the Saudi stock exchange on Monday.

Nearly SAR 7 billion will be allocated to poultry expansion, SAR 5 billion to strengthen existing core product categories (dairy, juice, and bakery), SAR 1 billion to foray into promising new food segments, and SAR 4 billion to develop a supply chain and sales capabilities to support local and regional expansion plans.

The company will invest SAR 1 billion to support and accelerate technology development, focussing on innovation.

The plan will be funded using the company’s operational cash flows over the five years.

In January, Almarai reported a net profit of SAR 2.05 billion in 2023, up 16% from SAR 1.76 billion in the same period last year.

Net profit for the fourth quarter rose 4.2% to SAR 370.72 million from SAR 355.82 million a year ago.

(Editing by Seban Scaria seban.scaria@gmail.com)