Horizon Food Profit Jumps 75% on Chicken Sales Surge

Riyadh, Saudi Arabia — Horizon Food Co. posted a sharp jump in quarterly earnings, with net profit attributable to shareholders rising 74.8% year-on-year to 3.23 million SAR in the third quarter of 2026. Revenue surged 73.9% to 29.1 million SAR over the same period. The main drivers were higher sales volumes of chicken tender and cooked shawarma products, supported by new customer contracts and expanded production capacity.

Quarterly and Nine-Month Breakdown

In the current quarter, gross profit reached 8.69 million SAR, up 54% from 5.64 million SAR a year earlier. Operating profit climbed 64.5% to 3.37 million SAR. Sequentially, results were even stronger. Compared to the previous quarter, net profit rose 92% and revenue grew 30.6%, with chicken tender driving the sequential volume gains. Gross margin also improved quarter-on-quarter, adding momentum to the bottom line.

For the nine-month period ending September 30, 2026, Horizon Food’s revenue reached 72.7 million SAR, up 35.4% from 53.7 million SAR a year earlier. However, net profit for the period grew only 3.3%, reaching 8.65 million SAR versus 8.37 million SAR. Total shareholders’ equity stood at 126 million SAR. Earnings per share came in at 1.08 SAR, up from 1.05 SAR in the same period last year.

Key Drivers

• New customer contracts expanded the revenue base significantly across the nine-month period.
• Additional production line capacity fueled volume growth in chicken tender and cooked shawarma.
• Higher depreciation from new production lines compressed gross margins and weighed on the nine-month profit growth.
• Selling, distribution, general, and administrative expenses rose in line with operational expansion.
• Amortization of a new ERP system added to operating costs in the nine-month period.

What This Means for Investors

• The gap between strong revenue growth (35.4%) and modest profit growth (3.3%) over nine months signals that new capacity is still absorbing startup costs — margins should normalize as depreciation stabilizes.
• Quarterly momentum is accelerating. The 92% sequential profit jump and improving gross margin suggest the production ramp is maturing.
• Automation of production costing, expected to complete in Q4 2026, could improve cost visibility and operational efficiency going forward.
• Shareholders’ equity grew 4.5% year-on-year to 126 million SAR, reflecting retained earnings and a stable balance sheet with no accumulated losses reported.

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THE SAUDI STANDARD’S VIEW: HORIZON FOOD’S PROFIT SURGE SIGNALS A MATURING GROWTH STORY

Horizon Food’s third-quarter results mark a meaningful inflection point for a company that has moved decisively from capacity investment into operational delivery. The 74.8% profit increase and near-identical revenue growth confirm that volume expansion — not pricing or one-off gains — is powering this performance. For investors, the critical question is whether quarterly momentum can override the margin compression that has restrained nine-month earnings.

• CAPACITY INVESTMENT IS BEGINNING TO PAY OFF

The deliberate expansion of production lines for chicken tender and cooked shawarma products created a temporary drag on profitability through higher depreciation and startup costs. The 92% sequential profit jump signals that the company is crossing from the investment phase into the returns phase. As depreciation charges stabilize relative to revenue, bottom-line growth should increasingly reflect the top-line trajectory.

• THE MARGIN GAP DEMANDS INVESTOR ATTENTION

A 35.4% revenue rise producing only 3.3% profit growth over nine months is a spread that disciplined investors cannot overlook. Rising selling, distribution, and administrative expenses alongside ERP system amortization have compressed the conversion of revenue into earnings. The improvement in gross margin quarter-on-quarter is encouraging, but sustained margin recovery must be demonstrated across multiple periods before the nine-month disconnect can be fully discounted.

• NEW CONTRACTS PROVIDE STRUCTURAL REVENUE SUPPORT

Horizon Food’s ability to secure new customer contracts while simultaneously scaling production capacity suggests demand is being won, not merely inherited. This combination of commercial and operational momentum reduces revenue concentration risk and broadens the company’s earnings base. For investors evaluating durability, contracted revenue growth is a more stable foundation than volume spikes driven by spot demand.

• BALANCE SHEET DISCIPLINE UNDERPINS THE GROWTH NARRATIVE

Shareholders’ equity of 126 million SAR, supported by retained earnings and an absence of accumulated losses, reflects a company managing its expansion without compromising financial integrity. A clean balance sheet provides Horizon Food with strategic flexibility — including capacity for additional investment or dividend distribution — as profitability consolidates. For smaller listed food producers, balance sheet health is a critical differentiator in attracting institutional attention.

Horizon Food’s trajectory aligns directly with Saudi Arabia’s Vision 2030 objective of building a competitive domestic food manufacturing sector capable of reducing import dependency and expanding local value chains. The company’s investment in automation, production capacity, and enterprise systems mirrors the operational modernization that the Kingdom’s industrial strategy demands. If Horizon Food can convert its revenue momentum into consistent profit growth through 2027, it positions itself as a meaningful participant in Saudi Arabia’s ambition to establish food security through nationally rooted production capability.