Tanmiah Food Swings to 23.2M SAR Nine-Month Profit

Riyadh, Saudi Arabia — Tanmiah Food Co. turned its nine-month performance around sharply, reporting a net profit attributable to shareholders of 23.2 million SAR for the period ending September 30, 2026. That compares to just 3.6 million SAR in the same period last year — a 544% jump. Revenue rose 18.4% year-on-year to 2,298.4 million SAR, driven by growth across both its Agribusiness and Restaurant Operations segments.

The turnaround reflects stronger poultry pricing, higher sales volumes, and a near-doubling of Animal Feed and Health Products revenue. International markets also contributed meaningfully, with revenue generated outside Saudi Arabia rising 71.2% year-on-year to 243.6 million SAR across the nine-month period.

Quarterly Breakdown: Q3 2026 vs. Prior Periods

In the third quarter alone, Tanmiah posted revenue of 777.9 million SAR — up 26.7% from 614.2 million SAR in Q3 2025. Net profit reached 5.4 million SAR, reversing a net loss of 15.8 million SAR a year earlier. That puts the net margin at 0.7%, compared to -2.6% in Q3 2025.

Sequentially, however, results softened. Revenue dipped 1.4% from Q2 2026’s 789.2 million SAR, and net profit fell sharply from 19.0 million SAR to 5.4 million SAR — a 71.6% quarter-on-quarter decline. Tanmiah attributed the drop to seasonal softness in Agribusiness and Restaurant Operations, combined with elevated production and feed costs in the quarter.

Operational profit for Q3 2026 came in at 36.5 million SAR, more than double the 16.6 million SAR recorded in Q3 2025, though down from 52.3 million SAR in Q2 2026. Gross profit for the quarter reached 170.4 million SAR, up 23.7% year-on-year.

Key Drivers

• Fresh Poultry: Revenue grew 15.5% year-on-year in Q3 2026, supported by higher sales volumes and improved average selling prices. For the nine-month period, the segment generated 1,680.6 million SAR — up 14.4% — as Tanmiah sold 129.9 million birds at an average daily production of 602,000 birds, up 6.9% year-on-year.
• Animal Feed and Health Products: The standout growth segment. Revenue nearly doubled year-on-year in Q3 2026 to 152.0 million SAR, bringing the nine-month total to 430.0 million SAR — a 31.3% increase. Chicks, Hatching Eggs, and Feed operations drove most of that gain.
• Restaurant Operations: Revenue grew 25.5% year-on-year in Q3 2026 despite geopolitical headwinds. Like-for-like transactions rose 30.8% in the quarter. Aggregator channels accounted for 57% of segment revenue. The segment still runs at a loss, but that loss narrowed 36% year-on-year for the nine-month period to 27.0 million SAR.
• GCC expansion: Revenue from outside Saudi Arabia more than doubled in Q3 2026 to 92.0 million SAR. Tanmiah operated 93 restaurant outlets at September 30, 2026 — 84 in Saudi Arabia, 5 in Kuwait, and 4 in Bahrain.
• Cost pressures: Higher diesel, utility, feed input, logistics, insurance, and financing costs partially offset all operational gains across the period.

What This Means for Investors

• Profitability is fragile. Nine-month net profit of 23.2 million SAR on revenue of 2,298.4 million SAR implies a thin 1.0% net margin. The Q3 sequential drop from 19.0 million SAR to 5.4 million SAR shows how quickly cost pressures can erode earnings.
• Agribusiness is carrying the business. Agribusiness generated 50.2 million SAR in nine-month net profit — up 9.5% year-on-year — while Restaurant Operations still lost 27.0 million SAR. Investors should watch whether the restaurant segment reaches breakeven.
• Shareholders’ equity is essentially flat. Total shareholders’ equity stood at 638.6 million SAR, marginally down from 640.8 million SAR a year earlier. Earnings per share reached 1.16 SAR for the nine-month period, versus 0.18 SAR in 9M 2025.
• International revenue is a bright spot. The 71.2% year-on-year rise in revenue from outside Saudi Arabia signals real geographic diversification — but it remains a modest share of total sales and warrants monitoring for sustainability.

Latest Saudi stock market investor news and company disclosures

Saudi Arabia capital markets coverage and analysis

THE SAUDI STANDARD’S VIEW: TANMIAH’S TURNAROUND IS REAL — BUT THIN MARGINS DEMAND DISCIPLINE

Tanmiah Food Co.’s nine-month swing to profitability is a meaningful inflection point for a company that has long been viewed as a volume story without sufficient earnings follow-through. The 544% jump in net profit and double-digit revenue growth across multiple segments confirm genuine operational progress. Yet with a net margin barely above 1%, this remains a business where cost management and pricing power are existential — not merely strategic — concerns.

• MARGIN VULNERABILITY IS THE CENTRAL INVESTMENT RISK

The sequential collapse in net profit from 19.0 million SAR in Q2 to 5.4 million SAR in Q3 — on essentially flat revenue — illustrates how exposed Tanmiah’s earnings are to input cost cycles. Diesel, utilities, feed inputs, and logistics represent structural cost pressures that management cannot fully control. Investors should treat any quarterly profitability figure as conditional rather than durable until a sustained margin floor is established above 2%.

• AGRIBUSINESS STRENGTH MASKS RESTAURANT DRAG

The Agribusiness segment is functioning as the financial backbone of the entire enterprise, generating profits that must absorb ongoing losses from Restaurant Operations. While the restaurant segment’s narrowing loss and 30.8% like-for-like transaction growth in Q3 signal improving unit economics, a business losing 27 million SAR over nine months on a base of thin consolidated earnings cannot be treated as a neutral drag. Breakeven in Restaurant Operations would be a material re-rating catalyst.

• INTERNATIONAL EXPANSION ADDS STRATEGIC VALUE, NOT YET FINANCIAL WEIGHT

The 71.2% year-on-year rise in revenue generated outside Saudi Arabia is the most strategically significant data point in this results cycle, reflecting deliberate GCC penetration through both poultry distribution and restaurant outlets. However, international revenue still represents a modest share of the consolidated top line, meaning its contribution to earnings protection remains limited for now. Sustained quarter-on-quarter growth in this segment would meaningfully strengthen the investment thesis.

• EQUITY STABILITY SIGNALS BALANCE SHEET DISCIPLINE

Shareholders’ equity holding near 638 million SAR, with earnings per share rising from 0.18 SAR to 1.16 SAR year-on-year, reflects a company managing capital conservatively through a turnaround cycle rather than leveraging aggressively for growth. This posture is appropriate given the margin environment. Investors should monitor working capital efficiency and financing costs — currently identified as a headwind — as the most direct pressure point on future equity generation.

Tanmiah operates in one of the most strategically critical sectors of Vision 2030’s food security agenda, with Saudi Arabia’s drive toward domestic protein self-sufficiency creating both regulatory support and long-term demand tailwinds for integrated poultry producers. The company’s expanding animal feed operations and GCC restaurant footprint align directly with the Kingdom’s ambition to develop export-capable food enterprises rather than purely import-substitution businesses. For investors, the structural opportunity is clear — but capitalising on it requires Tanmiah to convert its volume growth into durable margin expansion, the one threshold this results cycle has not yet definitively crossed.