Herfy food chain holds 6% of Saudi Arabias $4.8bln restaurant sector, says CEO

According to research, the local restaurant sector is valued at nearly SR18 billion ($4.8 billion) in total, he said.

Estimates also reveal that the Riyadh-based firm is among the largest foodstuff producers in the meatpacking and bakeries market, Bader added.

He noted that the company is currently focusing its efforts on boosting its market share across all sectors, having reported an earnings beat for the fourth quarter of 2021.

Bader attributed the profit hike to an 11 percent year-on-year rise in sales, reaching SR31 million in the final quarter of 2021.

This was further buoyed by an increase in other revenues, as well as a fall in expenses, after the food chain giant closed a franchise agreement in Nigeria.

The executive said that Nigeria’s first Herfy branch is expected to open this year.

"It is too early to unveil the contribution of franchise contracts to the company's profits in terms of the number of restaurant branches and the number of current countries,” he said, commenting on the project.

Addressing the 2021 dividend freeze, Bader justified it with a plan by the management to strengthen the company’s financials and aid investment plans.

Arab News earlier reported that Herfy posted over a threefold rise in its estimated annual profit for 2021, after a surge in its sales of 22 percent during the pandemic.

The estimated net profit amounted to SR162 million, compared to SR52.8 million a year earlier, according to a bourse filing.