News Column

Almarai announces new capital investments in Egypt

June 22, 2014

International Company for Agricultural Industries (Beyti), a subsidiary company of International Dairy & Juice Limited (IDJ), a joint venture between Almarai Company (52 per cent) and PepsiCo (48 per cent), plans to invest EGP 2.5 billion (SAR 1.3 billion) in Egypt.

The investment plan, which was approved by the IDJ board on 16 June 2014 and approved by Almarai Board of Directors via circular mailing on 19 June 2014, will span over the next five years, and is aimed at enhancing Beyti's competitive position in the Egyptian market.

The programme will be funded in majority by an equity injection from both joint-venture partners, as per their percentage of ownership, the rest through Beyti's financial debt. For Almarai this equity injection will be financed through its own cash-flow.

The financial impact of these capital investments will be reflected gradually from Q3 2014 until 2019, on a consolidated basis, as the projects developed, through an increase in its assets and debt, as well as an increase in its consolidated sales.

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Source: CPI Financial

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