Navigating with care

Annual Report 2021

At a glance
Operating Review
People & Culture
Financial Statements
Almarai

Business
Model

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Our business model is structured to deliver on the promise of ‘Quality you can trust’.

It is tailored to our commitment to ongoing improvement and exists as a guiding force for operations across the Company. The business model enables Management and staff to work in accordance with a clearly defined operating framework. It facilitates the practical application of a working culture that has efficient and effective process management at its heart.

Inputs

Raw materials

  • 1,664+ suppliers
  • Supplying 42,699 items
  • SAR 6.8 billion spent on materials in 2021

Advanced manufacturing

  • Four ultra-modern dairy and juice processing facilities
  • State-of-the-art Infant Nutrition facility
  • Three bakeries
  • Poultry plant and facility

Leading innovation

  • Innovative systems and processes
  • Innovative product development to delight consumers

Best-loved brands

  • Eight leading brands

Innovative people

  • Workforce of 40,213 inspired by innovation
  • World-class training and development programme
  • 59 nationalities

Strong financial support

  • Robust financial management, low leverage
  • Access to funding from global capital markets
  • Strong working capital and capital expenditure control
Adding Value

Business unit structure:

  • Almarai transitioned from a functional to business unit model
  • Management focus on end-to-end sales, profitability and return on Net Operating Assets (RONOA) for each business units
  • All business units served by Sales, Distribution and Logistics, Procurement and other corporate functions
  • Exports team to grow opportunities for sales beyond GCC (worldwide)

Commitment to quality:

  • Quality you can trust’ is in our DNA
  • The Almarai Quality 4.0 program covers process, people and technology, unifying the quality architecture across the Group
  • Core values (ASPIRE) are directly connected to our world-class quality management system

Almarai innovation management:

  • Stage-gate innovation management process captures product ideas, managing them to final launch
  • 200+ projects in pipeline meet new consumers trends and maximize operational efficiency

How we do it

Crop cultivation and selection

  • Animals consume highest quality feed
  • Almarai imports 100% of its yearly green fodder requirements through its oversea arable operations

Extraordinary care for farm animals

  • Dairy herd and poultry flock have 24-hour veterinary care
  • Temperature controlled housing
  • Highly nutritious feed
  • Ensures maximum yield and first-class end product

Best-in-class manufacturing

  • Cutting-edge technology to mass produce nutritious products while reducing costs (Manufacturing 4.0)
  • Continuous facilities expansion and renovation
  • Meeting growing demand

Exceptional transport and logistics

  • Transport and Logistics division larger than any logistics company in the Middle East
  • 8,527 vehicles deliver 2 billion kg of product on time and in perfect condition

Consumer insights and powerful branding

  • Earned the trust of consumers to become a trusted brand across the Middle East
  • Ongoing feedback process for maintaining quality and consumer satisfaction

Innovation in our DNA

  • Commitment to innovation is a core value
  • Innovation underwrites the Almarai quality culture
  • Digitalization of production and automation of business processes

Outputs

Shareholder value

  • For 40 years, consistent delivery of strong returns to shareholders
  • Almarai is committed to creating shareholder value by paying dividends and realizing compelling returns for long term investors

People

  • Almarai is recognized among the GCC’s best employers
  • All staff are encouraged to participate in training and develop their careers

Society

  • Social responsibility and sustainability Programs designed to support Vision 2030
  • Connecting all levels of society and the environment from helping children in need to reducing our environmental footprint

Consumers

  • Delighting consumers across the Middle East with healthy and nutritious food and beverages, at affordable prices from a brand they know and trust