OMAN – Oman Flour Mills (OFM), a publicly traded subsidiary of Oman Food Investment Holding Company (Nitaj), has revealed its strategic vision to acquire several food-related entities and assets as part of an extensive expansion drive across the Gulf region.
The Oman-based company manages a diversified portfolio of around 14 subsidiary and associate companies spanning grain imports, milling, industrial bakery operations, animal feed production, and dairy and poultry products.
Speaking during the company’s newly released 2023 Annual Report, Ahmed Ali al Bulushi, Chairman of OFM repo said the company is “actively pursuing growth opportunities” as part of its expansion strategy.
“We are currently engaged in finalizing our strategic roadmap to venture into new segments within the food industry,” he said.
Eyed by the Group is a company operating in the animal feed sector, with a technical consultant already engaged to assess the target’s manufacturing facilities.
The company also revealed that it plans to diversify into the sweets and confectionery business, with Atyab Investments—the investment arm of Oman Flour Mills—currently spearheading the acquisition process.
Additionally, Atyab Food Industries (AFI), a wholly owned subsidiary of OFM, is nearing the completion of due diligence and valuation processes to acquire a prominent bakery in Oman.
According to the company, aggregate group revenue climbed 6% to reach RO 123.94 million in 2023, driven primarily by heightened revenue from the flagship Oman Flour Mills parent company.
“Despite a marginal 3% increase in the cost of sales, gross profit surged by 32%, reaching RO 18.12 million (US$3.8M) compared to RO 14.25 million (US$3M) in 2022.
Operational efficiency played a pivotal role in boosting operating profit, which experienced a significant uplift of RO 3.96 million (US$847,000),” said the Chairman.
However, net profit after tax declined by 25% due to various factors.
Looking ahead, the chairman revealed that Atyab Investments is leading OFM’s endeavour to establish a bakery in Saudi Arabia, with ongoing discussions with potential partners to finalize feasibility studies.
OFM is also advancing plans for an industrial food cluster in Oman, designed to accommodate small-scale manufacturing units catering to local food needs.
The Chairman expects the detailed feasibility report for this project to be completed soon.
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