Tanmia Food Development Company, a leading food and beverage company in Saudi Arabia, announced its financial results for the fourth quarter of 2025, reporting a net loss of SAR 22.4 million. This shift in performance contrasts sharply with a net profit of SAR 26.8 million during the same period in 2024, reflecting the significant challenges facing the company and the sector as a whole.
Reasons for the shift to loss
According to the company's official statement published on the Saudi Stock Exchange (Tadawul), this decline in performance is primarily due to ongoing market challenges in the fresh poultry sector. The company also noted that global inflationary pressures have led to higher operating costs, including increased fuel and utility costs, as well as higher distribution and financing expenses. Additionally, the company incurred costs related to commissioning new facilities aimed at boosting its future production capacity, which were partially offset by increased production volume.
General context of the Saudi food sector
Tanmia Food Company is a pivotal player in achieving the Kingdom's food security goals, a cornerstone of Saudi Vision 2030. The Saudi government is working to support national companies to increase self-sufficiency in vital food products, particularly in the poultry sector. In this context, Tanmia and other companies in the market face intense competition and pressure to maintain profit margins amidst fluctuating global input prices such as feed and energy, which explains some of the pressure on the company's performance.
Impact and importance for investors and the market
The financial results of Tanmia Company not only impact its shareholders and the performance of its stock in the financial market, but also provide an indicator of the health of the Saudi food sector and its ability to withstand economic shocks. Investors and analysts are closely monitoring these results to assess the success of the company's expansion and cost control strategies. Regionally, these challenges highlight the importance of building resilient and sustainable supply chains to ensure price stability and product availability for consumers.
Full fiscal year results 2025
The impact of these challenges extended throughout the 2025 fiscal year, with the company recording a net loss of SAR 18.8 million, compared to a net profit of SAR 95.8 million in 2024. Operating losses were distributed between the agricultural business (fresh poultry, feed, and animal health), which recorded a net loss of SAR 37.0 million, and restaurant operations, which incurred a net loss of SAR 55.9 million, demonstrating that the pressures were not limited to a single sector. Despite the challenging financial performance, the company's investments in increased production volume and cost-cutting measures should help offset these pressures in the long term.
