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The information furnished on the following web pages is not to be furnished or made available to any person outside the Kingdom of Saudi Arabia or to any person to whom it is unlawful to furnish or make available such information.
The information on the following web pages is intended solely to provide information on the initial public offering and listing of Almunajem Foods (the “Company”) and does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction. The information on the following web pages does not constitute or form part of any offer for sale or subscription of or solicitation of any offer to buy or subscribe for any securities in any jurisdiction other than the Kingdom of Saudi Arabia.
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This section of our website is designed to provide you with all the information related to the IPO of Almunajem Foods. We aim to ensure that everyone who is interested has the opportunity to find information on the company and the IPO process.
What is Almunajem Foods?
Almunajem Foods is amongst the largest Saudi food companies. It imports, markets, distributes and produces a wide variety of frozen, chilled and dry foodstuff items (including brands such as Doux, Dari and Supreme). Founded in 1950, it provides a wide variety of high-quality, nutritious food to millions of kitchens in Saudi Arabia by operating the largest temperature-controlled cold stores of frozen and chilled food in KSA.
The Company operates 14 branches, 12 of which are equipped with a temperature-controlled warehouse, importing over 250,000 MT of product annually which serves more than 18,000 customer outlets including retailers, wholesale distributors and food services companies.
It also successfully established its own meat factory in Jeddah and markets its own array of food brands.
The Big Numbers
Saleh Bin Abdullah Ali Almunajem
Chairman of the Board
As one of the largest food companies in the Kingdom of Saudi Arabia, Almunajem Foods has played a pivotal role in the development story of our nation over the past 70 years by supporting the Kingdom’s food security. Since the company’s establishment in 1950, we have built extensive knowledge, experience and capabilities in the food industry, whilst fostering deep and meaningful relationships with our customers and suppliers globally.
Over the past few decades, our stakeholders, both external and internal, have observed the company’s tremendous transformation from a small Riyadh-based business to a household name that is trusted and valued by millions across the country. Today, with your trust and support, Almunajem Foods is a robust, technology-backed enterprise that attracts some of the top talent in the market and provides high-quality, nutritious food to millions of kitchens by leveraging its broad supplier network and logistical infrastructure.
Our intention to proceed with an initial public offering (IPO) on the Main Market of the Saudi Exchange is another significant step forward in our transformational story. A step that would not have been possible without our employees’ commitment, our unique business model and, most importantly, your trust.
The listing of Almunajem Foods is driven by our desire to further elevate the company by institutionalizing our operations from a governance and continuity perspective, and to share our story and success with our partners.
As we look to the future, the listing of Almunajem Foods will create a more robust platform to support the company’s long-term success and ambition. As we embark on this exciting step, our entire team remains committed to our long-term strategy. We will continue to put the customer first, focus on product diversification and distribution channel enhancement, increasing our market share, strengthening our brand identity, and further developing our human and logistical capabilities. These priorities will ensure our long-term success and ability to deliver value to our shareholders.
Almunajem Foods mission is to deliver quality food products from around the world in a reliable, efficient and customer centric manner that adds value to all stakeholders.
- The Company has:
- 18,000+ customer outlets including retail, food services, and wholesale channels
- 700+ SKUs across 5 main product categories: 1) red and white meat; 2) frozen fruits and vegetables; 3) dairy products; 4) olives and oils and 5) others including rice, sauces, condiments, etc.
- 14 branches, 12 are temperature-controlled cold stores and 1 meat processing facility
- 55,000 MT of storage capacity
- Imports over 250,000 MT of imported products annually from France, Spain, Norway, New Zealand, India, Brazil and others
- 1,000+ specialized vehicles fitted with multi-purpose temperature storing capabilities
- 1,800+ employees of which over 700 are dedicated to sales and marketing
- Maintains strong relationships with 60+ international and local suppliers; majority of which are internationally renowned with established global market presences
- It has up to 50 years of relationships with product names such as Doux, Supreme, President
- Complementing its import and distribution, Almunajem Foods produces various minced meat and FPP products through its meat processing facility in Jeddah. AMF is currently working towards expanding the portfolio of meat products produced by the facility.
- It established itself in 1950, opening its first temperature-controlled warehouse in Riyadh in 1962 with 200MT storage capacity. It has since grown its cumulative storage capacity over 270x to 55,000 MT at a time
- It has a proven track record of growth driven by its ‘customer-centric’ approach, deep knowledge and expertise of the KSA market
- It holds the number 1, 2 or 3 position across all main product categories delivered to retail consumers
- It has a well-diversified set of customers and suppliers, with its top 10 key customers sales contribution amounting to 24% of all sales
- The top three sales categories are: red and white meat, frozen fruits & vegetables and dairy products
- The company's' sales and supplier base have grown significantly and diversified greatly over the past 10 years
- In recent years, Almunajem Foods launched its own brand; Dari, which offers a wide range of frozen poultry, FPP, fruits and vegetables and dairy products and others, and forms a key component of the Company’s growth strategy
- Almunajem Foods has 14 branches strategically located across 12 regions in Saudi Arabia, in addition to a meat processing facility
- 12 of the 14 branches are equipped with a cold store featuring advanced multi-temperature cooling and automated racking technologies which optimize inventory management and forms the foundations for the company's robust supply chain capabilities
- Almunajem Foods uses Oracle inventory management system with real-time tracking
- There are 18,000+ customers operating in the wholesale, retail and foodservice sectors, that get served by over 1,000+ vehicles, most of which are fitted with multi-purpose temperature storing capabilities
- Quality control and food safety are at the heart of the Company’s operations – at every step of the food journey, from the product’s place of origin to customer outlets, the Company applies and adheres to the highest and most rigorous standards of quality control and food safety
- The management team bring substantial experience and deep understanding of the sector, consumer behavior and consumption trends. You can read the management’s biography and details on corporate governance in the Prospectus. Click here for access.
- It has a robust corporate governance framework in place, with two independent board members, and an audit, nomination and remuneration committee.
- Long-term consumer spending and expenditure on F&B is expected to continue to grow at 4.6% CAGR until 2024G, driven by favorable demographic reforms, population growth and tourism
- Government initiatives are creating a shift in the quality of life. More jobs, higher disposable income, growing consumer spending. As a result, F&B sales have grown by 6.4% between 2013 – 2021 to reach SAR 221 billion from SAR 135 billion.
- Further growth is expected, with over 1,300 new restaurants and 1,200 new cafes due to open by 2025, all of which will need food delivered to them.
- Revenue averaged SAR 2,500 million during the last 4 years, highlighting the company’s ability to continuously shift, optimize and reinvent in strong or challenging market conditions
- FY 2020 was a very strong year for the company
- Revenue topped SAR 2.5 billion, 4.9% higher than FY 2019, largely attributed to a surge in average retail consumer spending and helped to off-set the drop in revenue from the pandemic affected foodservice channel
- EBITDA reached SAR 279 million, 79% higher than 2019; and a three-year CAGR of 21.3%
- Net profit was SAR 230 million, over 111% vs 2019; and a three-year CAGR of 24%
- Cashflow generation at 74%
- Healthy debt profile of 0.6x net debt/EBITDA to support future growth
- Company paid a total dividend of SAR 158 million for FY 2020
- H1 2021 more challenging, coming off a very strong, artificially higher year in 2020
- Revenue at SAR 1,243m, marginally lower than H1 2020 at SAR 1,289m, mainly due to the decline of selling prices of some products as a result of increasing product promotions.
- EBITDA and net profit declined on the back of easing of wider market trends contributing to the one-off increase during 2020.
Expected IPO Timeline
How to Subscribe
FAQs on Subscription
- The shares will be listed on the Saudi Stock Exchange (Saudi Exchange).
- Subscription to the Offer Shares is restricted to the following two groups of investors: (1) Participating Parties (any investor who is approved by the CMA) and (2) Individual Investors (Saudi Arabian nationals, GCC nationals and foreign residents in Saudi Arabia, with an active bank account with one of the participating banks), are eligible to subscribe to the Offering.
- The Offering’s final price will be set after the book-building is complete.
- There will be no implementation of a lock-up period or restrictions on the sale of shares following the listing.
If you are interested to invest in Almunajem Foods, please contact the bank listed below which is collaborating with the Company in order to help investors and shareholders.