In a move reflecting the company's strong financial position and confidence in its future cash flows, the board of directors of Nafouth Food Products Company approved yesterday a new policy for distributing interim dividends to shareholders covering a three-year period, starting from fiscal year 2026 and ending in 2028. The company clarified in an official statement published on the Saudi Stock Exchange (Tadawul) website that this policy is subject to the approval of the shareholders' general assembly, the date of which will be announced later.
Details of proposed cash distributions
According to the statement issued, the company has set a clear roadmap for cash returns, intending to distribute dividends quarterly and on an increasing scale, as follows:
- 2026 AD: Distribution of 0.20 riyals per share.
- 2027 AD: Increase in distribution to become 0.22 riyals per share.
- 2028 AD: Reaching 0.24 riyals per share.
The company confirmed that these figures represent a minimum target, giving investors a clear view of the expected returns on their investments over the coming years.
The economic context and the importance of the decision
This decision comes amid a significant shift in the Saudi financial market, where listed companies are moving towards adopting transparent and long-term dividend policies, in line with global best practices in investor relations. This step is particularly important in the food products sector, a vital pillar of the Saudi economy, which is experiencing continuous growth driven by increased domestic demand and food security initiatives within the Kingdom's Vision 2030.
Announcing a dividend policy for the next three years sends strong reassuring messages to the investment community, both locally and regionally, about the company’s financial stability and its ability to generate liquidity, which enhances the stock’s attractiveness to investors seeking stable periodic returns and helps reduce the risk of price volatility.
Balancing sustainable growth and shareholder rewards
Nafouth indicated that this policy is part of a strategic direction aimed at aligning dividend distribution with the requirements of operational expansion. The company clarified that adopting these distributions will not affect its future expansion plans or contractual obligations, as it continues to implement its strategy for sustainable growth based on innovation, profitability quality, and financial discipline.
The company concluded its statement by noting that the Board of Directors reserves the right to amend or suspend these distributions based on material market conditions or any regulatory changes, in order to ensure the long-term interests of the company and its shareholders.
