Distributions Until 2030 and a New Strategy.. "Almarai" Announces Important Decisions for Shareholders

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Almarai Company announced its dividend distribution policy until 2030 and approved a strategy until 2031.

Almarai stated in a statement on Saudi Tadawul today, Tuesday, that its Board of Directors approved the dividend distribution policy for the financial years 2026-2030, as part of the company's strategy for the next five years and the capital allocation framework.

It continued: "The adoption of the policy aims to provide shareholders with a clearer view of the company's approach to dividend distribution and capital allocation priorities."

Under the policy, Almarai aims to distribute cash dividends ranging from 40% to 60% of annual net profit. This range balances shareholder returns with the company's financing needs and disciplined management of leverage levels, while targeting gradual growth in cash distributions in line with the sustainability of profits and cash flows.

The policy will be implemented in 2027, concerning cash distributions related to the financial year ending December 31, 2026.

The actual cash distributions for each year are determined based on the company's financial performance, clarity of cash flows, investment requirements, levels of financial leverage, and operational conditions, and remain subject to the recommendation of the Board of Directors and the approval of the General Assembly and relevant regulations and laws.

In a separate statement, Almarai Company announced the Board of Directors' approval of the company's strategy for the period from 2026 to 2031.

The company added that it is entering a new phase focused on realizing value from its investments through disciplined execution and capital allocation.

The strategy focuses on four clear priorities: enhancing business resilience and food supply chains, improving efficiency through productivity enhancement, boosting profitability through disciplined growth, and increasing cash flow generation to support sustainable shareholder value.

• Accelerating growth in core dairy operations.

• Selective expansion in promising food categories.

• Accelerating the development of channels with promising potential, including food services and e-commerce.

• Strengthening the company's position in priority markets, while selectively seeking new opportunities.

The strategy is based on what "Almarai" enjoys in terms of market leadership, trusted brands, operational excellence, and quality capabilities.

It aims to seize promising growth opportunities and create sustainable long-term value for shareholders and stakeholders.

The company also aims to expand consumer choices, enhance local manufacturing, and contribute to achieving the national goals of the Kingdom, including food security and economic diversification.

It was noted that this step does not have any significant financial impact at the moment, and the company will announce any substantial developments in accordance with the relevant regulations and laws.