Saudi poultry company Tanmiah Food has entered into a Memorandum of Understanding (MoU) with Brazilian firm Vibra Agroindustrial. This agreement seeks to explore “potential investment and strategic collaboration” in the food manufacturing sector.
The MoU is set for a period of two months, with an extension option “if mutually agreed,” as stated by Tanmiah in a communication to the Saudi stock exchange.
This investment will focus on bolstering Tanmiah’s processing capabilities while enhancing operational efficiency.
Moreover, the collaboration aims to establish a Saudi-based “global” Halal brand. This initiative will leverage the nation’s Halal standards alongside Vibra’s cost-effective production capabilities in Brazil.
Tanmiah articulated that these potential initiatives align with its “strategic vision” to achieve leadership and sustainable growth in the global food sector.
This latest partnership follows Tanmiah’s 2024 financial results, which revealed notable increases in both revenue and profit.
In 2024, Tanmiah generated approximately SR2.56 billion (around $682.7 million), witnessing a 22.5% increase from the previous year. This growth resulted from heightened sales volumes, expanded channels, and broader geographical reach.
Additionally, the net profit allocated to shareholders reached SR95.8 million in FY24, reflecting a significant 26.2% increase over the previous year, primarily due to cost optimization efforts.
In December, Tanmiah’s Agricultural Development Company subsidiary secured a deal with Dajin Poultry Company to acquire a poultry processing facility in Saudi Arabia.
In September, Saudi Arabia acquired a minority share in Ukrainian poultry processor and agri-food group MHP.
State investment entity, the Saudi Agricultural and Livestock Investment Company (Salic), purchased a 12.6% stake in London-listed MHP by buying over 13.5 million global depositary receipts (GDR) from the market.
Saudi Arabia’s Vision 2030 emphasizes increasing local food production as a crucial strategy for enhancing food security.
