Almunajem CEO: Demand steady for most products, gradual improvement seen by Q3-end
Abanumay saw a gradual demand rebound by the end of the third quarter, as the summer holiday is ending and the back-to-school season looming.
The key challenges in the frozen poultry market are the domestic oversupply, while a segment of consumers prefer the fresh poultry, portions, as well as the processed products.
Commenting on the company's financial results, Abanumay noted that the local oversupply weighed on profit margins in both red and white meat categories, and particularly poultry, which has been facing price pressures since the end of last year. This was coupled with higher operating expenses, driven by setting up a logistics services subsidiary, and the company's entry into the fresh poultry segment at the beginning of the year.
All regions have seen rising demand, particularly the Central and Western regions.
Revenue declined by 3.5% due to lower red and white meat sales, as retail frozen poultry prices fell 14% year-on-year (YoY), despite a 3.2% increase in total sales volumes and a 10% rise in sales of other categories.
Additionally, the financial impact from expanding Almunajem's stake in Balady Poultry Co. to 40% amounted to SAR 4.2 million in Q2 2025, said Abanumay, noting that the bigger impact will appear through the strategic partnership in the fresh poultry sector, while providing value-added products to consumers.
Almunajem's net profit fell 60% to SAR 71 million for H1 2025, compared to SAR 177.8 million a year earlier with Q2 net earnings at SAR 31 million (-51%).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
3 hours ago
- Arab News
Dubai hosts world's largest Pakistan Independence Day gathering, embassy says
ISLAMABAD: About 60,000 people attended Pakistan's Independence Day celebration at the Dubai Expo City, making it the largest such gathering in the world, the embassy of Pakistan in the United Arab Emirates said on Thursday. Expressing gratitude to the UAE government, envoy Faisal Niaz Tirmizi acknowledged their support in making this year's Pakistan Independence Day celebrations 'unprecedented in scale.' 'The event, held on 10 August in Dubai Expo City attended by around 60,000 people, was the largest Pakistan Independence Day gathering held anywhere in the world,' the embassy said in a statement. Tirmizi also underscored the contributions of the Pakistani community in the UAE, underscoring their importance to Pakistan's economy at a time of fiscal reform and external account pressures. 'The Pakistani diaspora has played a vital role in the development of the UAE and has been a backbone of our economy through their remittances,' Tirmizi said, urging expatriates to continue their constructive role in the country's progress. As part of the celebrations, the embassy announced the launch of an online tracking system for passports and National Identity Cards for Overseas Pakistanis (NICOP), aimed at improving consular services. Tirmizi also pointed to improvements in education, saying two community schools had achieved a 'Good' ranking for the first time in 20 years, and that more Pakistani private schools had been approached to expand branches in the Emirates.
Arab News
4 hours ago
- Arab News
Saudi inflation eases to 2.1% in July: GASTAT
RIYADH: Saudi Arabia's annual inflation rate slowed in July to 2.1 percent, down from 2.3 percent in June, as softer price gains in some categories offset persistent housing pressures, official data showed. The figures, published in the latest report from the General Authority for Statistics, revealed that housing, water, electricity, gas and fuel posted the steepest annual increase among major categories, climbing 5.6 percent. That was driven by a 6.6 percent rise in rents, including a 6.4 percent increase in villa rentals. The housing component accounts for 25.5 percent of the consumer price index basket, making it a key driver of the headline figure. The inflation trend aligns with the Kingdom's goal of balancing economic growth with price stability as part of its Vision 2030 strategy to diversify the economy beyond oil. The government's November 2024 budget projected inflation to remain steady at 1.9 percent in 2025, up slightly from 1.7 percent in 2024. 'The annual inflation rate in the Kingdom witnessed a relative slowdown in the pace of growth during July 2025, reaching 2.1 percent, compared to 2.3 percent in the previous June,' GASTAT said. GASTAT publishes Consumer Price Index for July 2025 — الهيئة العامة للإحصاء (@Stats_Saudi) August 14, 2025 This comes as a July report from Kuwait-based non-banking firm Kamco Invest said inflation across Gulf Cooperation Council countries remained stable in the second quarter, despite heightened geopolitical instability. It added that the conflict's limited impact on GCC inflation was largely due to gradual, rather than sudden, increases in commodity and shipping costs. Sectoral breakdown Food and beverage prices increased by 1.6 percent year on year in July, driven by a 2.6 percent increase in the costs for meat and poultry. The authority said expenses for personal goods and services rose by 4.3 percent compared to the same period in the previous year. This was due to a 24.7 percent rise in the prices of jewelry, watches, and precious antiques. Restaurant and hotel costs edged up 1.4 percent year on year, while education prices advanced by 1.1 percent during the same period. Furnishing and home equipment prices declined by 2 percent, expenses for clothing and footwear decreased by 0.4 percent, and transportation prices dropped by 0.3 percent during the same period. Month on month, Saudi Arabia's Consumer Price Index was stable in July, reflecting unchanged prices across multiple sectors. Transportation, restaurants, and hotels recorded no change, while clothing and footwear, health, telecommunications, and tobacco also held steady. Prices of housing, water, electricity, gas, and fuel rose 0.2 percent. Entertainment costs also increased 0.2 percent from June, while education expenses edged down 0.1 percent. GASTAT publishes Wholesale Price Index for July 2025 — الهيئة العامة للإحصاء (@Stats_Saudi) August 14, 2025 The report added that food and beverage prices fell 0.2 percent, followed by a 0.1 percent decline in personal goods and services. Wholesale Price Index In a separate report, GASTAT said Saudi Arabia's Wholesale Price Index rose 2.1 percent in July from a year earlier, driven by a 4.1 percent increase in prices of transportable goods. 'The prices of other transportable goods, except metal products, machinery, and equipment, increased by 4.1 percent, driven by an 8.3 percent rise in the prices of refined petroleum products, and an 8.6 percent increase in the prices of furniture and other transportable goods,' said GASTAT. Prices of agricultural and fishery products rose 4.4 percent, while metal products edged up 0.1 percent. Food products, beverages, tobacco, and textiles also increased 0.3 percent. Prices of ores and minerals fell 0.8 percent, driven by an equivalent drop in stone and sand prices. Average prices In a separate analysis, GASTAT said green beans and local eggs saw the largest month-on-month increases in July, both rising 3.2 percent. Imported chilled sheep meat and hay also recorded notable gains, up 2.2 percent and 2 percent, respectively. The steepest declines were in Pakistani mangoes and medium African lemons, with prices falling 12.7 percent and 11.5 percent, respectively.
Arab News
4 hours ago
- Arab News
UAE air traffic climbs 6.2% as airports handle 75.4m passengers in H1
ABU DHABI: The UAE's civil aviation sector posted robust growth in the first half of 2025, with passenger traffic climbing 5 percent to 75.4 million, up from 71.7 million a year earlier, according to the Emirates News Agency or WAM. January was the busiest month, handling more than 13.7 million travelers across the nation's airports. The surge in passenger and cargo activity reflects a broader global rebound in aviation, as Middle Eastern carriers leverage their strategic location to capture long-haul transit traffic between Asia, Europe, and the Americas. Air traffic movements increased 6.2 percent to 531,000 operations in the first six months, compared to nearly 500,000 in the same period of 2024. Riyadh, Jeddah, Kuwait, Mumbai, and Bahrain ranked among the top five most active routes. Cargo volumes also strengthened, rising 4.74 percent to more than 2.2 million tonnes. National carriers handled 67 percent of total freight, underscoring the UAE's dominance in regional logistics. The expansion of UAE-based airlines — with 15 new destinations launched across Europe, Asia, Africa, and the Middle East — further fueled the sector's momentum. Abdullah bin Touq Al-Marri, minister of economy and chairman of the General Civil Aviation Authority, said the UAE is reinforcing its international and regional aviation standing through 'record-breaking growth.' 'This growth stems from innovative national strategies that have elevated our competitiveness and leadership in a vital sector that now plays a central role in economic development, trade, tourism, investment, and job creation across aviation-linked industries,' Al-Marri said, reported WAM. He added: 'The performance indicators for the first half of 2025 demonstrate the sector's resilience and sustainability, as well as the competitiveness of our airports, national carriers, and air traffic management. Aviation serves as a critical bridge connecting the UAE to the world and is a key enabler of our long-term economic goals.' Al-Marri noted that the UAE would continue expanding its air connectivity through advanced legislation, open-market policies, and infrastructure development. Saif Mohammed Al-Suwaidi, director general of the General Civil Aviation Authority, said the aviation sector is on a steady growth trajectory. 'These positive indicators reflect the sector's strong infrastructure and the unified efforts of all partners, from airport operators and airlines to air traffic controllers,' Al-Suwaidi said. He expressed pride in the consistent growth in passenger and cargo volumes, citing ambitious development projects aimed at supporting this expansion. The current combined capacity of the UAE's airports now exceeds 160 million passengers annually. Al-Suwaidi reaffirmed confidence in the sector's ability to sustain its pivotal role in boosting the national economy, driving tourism and trade, and strengthening the UAE's role as a key regional and global air transport hub. The new routes include cities in Russia, the Czech Republic, and Poland, as well as Armenia, Kazakhstan, Vietnam, and Cambodia, among others. These additions complement the existing network, bolstering the country's status as a global aviation hub.
