|09 June, 2016

Almarai says sees 14.5 bln riyals capex under 2017-21 business plan

The board of Saudi Arabia's Almarai has approved a new version of the company's five-year business plan which will cover the period 2017-2021.

DUBAI, June 9 (Reuters) - The board of Saudi Arabia's Almarai has approved a new version of the company's five-year business plan which will cover the period 2017-2021, the Gulf's largest dairy firm said in a bourse filing on Thursday.

Under the plan, Almarai is targeting the deployment of capital investment worth 14.5 billion riyals ($3.87 billion) during the period, which will be spent on areas including replacing existing assets, improvements in production capabilities and expanding into other geographies.

Funding for the investment plan will come from operating cash flow, as well as financing from banks, the Saudi Industrial Development Fund, the Agricultural Development Fund, and sukuk issues.

The firm is also forecasting a compound annual growth rate for sales of approximately 10 percentage points.

($1 = 3.7500 riyals)

(Reporting by David French, Editing by William Maclean) ((davidj.french@thomsonreuters.com; +971 4 362 5864; Reuters Messaging: davidj.french.thomsonreuters.com@reuters.net))