BinDawood eyes SAR 1.8B spend as Estonia dairy bet widens

The Estonian purchase is the latest in a series of acquisitions that started in 2022. BinDawood said the group's total investment in acquisitions and expansions since adopting its current growth strategy in 2020 amounts to about SAR 1.8 billion, excluding the Estonian deal. The push into food manufacturing grew out of the pandemic. "Our move into food manufacturing was driven by lessons learned from the COVID-19 pandemic, which exposed gaps and opportunities in food supply chains," BinDawood said.

BinDawood already runs three plants in Jeddah specializing in meat, cheese, and fresh food, plus a prior acquisition of Wonder Bakery in the UAE. The CEO said a new Saudi plant is in the works to support self-sufficiency and food security goals. He expects food manufacturing to contribute 18% to 20% of the group's total business in the medium term, up from current levels, as new acquisitions, expansions, and plant openings come online.

The group is still evaluating other investment opportunities inside and outside Saudi Arabia, but only those that meet strategic criteria and generate attractive returns for shareholders, BinDawood said.

On debt, the CEO disclosed total outstanding loans of less than SAR 600 million. He said the companies acquired over the past several years have improved profitability and created additional value for shareholders.