Almarai Sets 40%-60% Dividend Payout Target for 2026-2030
The Saudi dairy and food group's board approved a five-year dividend policy that takes effect in 2027 and first covers the year ending December 2026.
Tariq Benali Tariq Benali covers business and corporate news across the UAE and MENA for Anecdoted, tracking the deals, leadership moves and regulatory shifts behind the region's companies. tariq@anecdoted.com
Almarai's board approved a dividend policy on Monday that covers the 2026-2030 financial years, with a target cash payout of between 40% and 60% of annual net profit.
The policy sits inside the food and dairy group's five-year strategy and capital allocation framework. It was set out in a bourse filing, and the company said the aim is to give shareholders a clearer view of how dividends and capital spending will be prioritised.
The framework takes effect in 2027. The first year it governs closes in December 2026.
A range rather than a fixed pledge
Two pressures shape the band: what shareholders get back, and what the company keeps for investment and for managing leverage. It is also structured to let the cash payout climb over time, provided earnings and cash generation hold up.
Because the target is expressed as a share of profit rather than a fixed amount per share, the absolute cash returned rises and falls with earnings. No single year's distribution is locked in. Payouts will depend on financial performance, the visibility of cash flow, investment requirements, leverage and the operating environment. Each one still requires a board recommendation, approval by the General Assembly, and compliance with applicable laws and regulations.
Almarai operates across dairy and poultry, and it has added a water business through acquisition. That mix of assets is what the capital allocation framework has to fund, and it explains why the payout is framed as a band rather than a commitment.
Publishing a five-year range buys the company a measure of predictability with investors, and it creates an expectation that management will have to explain any year spent outside it. Nothing guarantees a figure in any given year. For a business with substantial capital needs, that flexibility is the substance of the policy, not a footnote to it.
Share price and third-quarter results
Almarai shares rose 2% to SAR 44.7 ($11.92) on the Saudi stock exchange on Tuesday, October 6, as of 12:11 pm AST.
Third-quarter 2026 revenue reached SAR 6.18 billion ($1.65 billion), an 11.4% increase year on year. The gain came from growth across markets, product categories and sales channels, supported by higher poultry volumes, stronger dairy sales in Egypt, and inorganic growth following the acquisition of a water business.
Net profit for the quarter rose 0.7% year on year to SAR 617.8 million ($165 million). Higher sales across markets and categories offset rising shipping and distribution costs.
Cost pressure matters to the dividend arithmetic. Transport and distribution expenses eat into the profit base from which any payout is calculated, so the gap between revenue growth and profit growth is the number to watch when the 2026 financial year closes.
Almarai ranked 46th on a 2026 ranking of the 100 most valuable companies in the Middle East.
