Core Viewpoint - Almunajem Foods Co. is in discussions to acquire a minority stake in Al Jouf Agricultural Development Company, aligning with its strategy for growth and strengthening its position in the food sector [1][3]. Group 1: Company Overview - Al Jouf Agricultural Development Company, founded in 1988, cultivates fruits, vegetables, and grains, and produces olive oil, honey, pickles, and French fries [2]. - Almunajem Foods primarily engages in poultry production and processing and is exploring a transaction to subscribe to new shares of Al Jouf priced at SR52.5 ($14) each [2]. Group 2: Strategic Initiatives - The potential investment is part of Almunajem Foods' efforts to enhance integration across the food value chain, evaluate investment opportunities, support food security, diversify growth sources, and create added value for shareholders [3]. - The discussions follow a recent seven-year processing and distribution agreement with Balady Poultry in Saudi Arabia [4]. Group 3: Financial Performance - Almunajem Foods received the first tranche of a long-term loan from the Saudi Industrial Development Fund (SIDF) amounting to SR11.6 million, part of a total approved facility of SR97.3 million, to finance capital expenditure for expanding its food production facility in Jeddah [5]. - The company reported a 2.2% increase in revenue for Q3 to SR816.1 million, but operating profit fell by 5.2% to SR36.4 million, and net profit dropped by 21.7% to SR31.7 million [6]. - For the nine-month period, revenue decreased by 0.5% to SR2.51 billion, with operating profit down 46% to SR118.3 million and net profit down 52% to SR102.7 million [7].