MUSCAT, AUGUST 17
A’Saffa Foods SAOG has completed and commissioned its broiler expansion project, lifting annual production capacity to 60 million birds, even as first-half profit fell on higher feed and packaging costs.
The Muscat Stock Exchange-listed poultry producer reported a consolidated net profit of RO 2.932 million for the six months ended June 30, 2026, down from RO 3.563 million a year earlier, a decline of about 18 per cent.
Consolidated revenue rose 11 per cent to RO 32.252 million from RO 29.062 million, which the company attributed to improved market demand and higher sales volumes.
The half-year result includes a gain of RO 696,094 from the disposal of the group’s investment in A’Namaa Poultry, a holding that had previously been fully impaired in A’Saffa’s financial statements. Stripping out that one-off item, net profit for the period would stand at about RO 2.24 million.
“Despite the increase in revenue, profitability was affected by higher feed and packaging material costs resulting from the challenging geopolitical environment during the period”, the Board said in its directors’ report to shareholders.
The expansion project has been “successfully completed, commissioned and brought into commercial operation”, the Board said, describing the increase to 60 million birds a year as “another significant milestone in the Company’s long-term growth strategy”.
The Board said the investment would enhance production capacity, improve operational efficiency, strengthen food security and support long-term value creation for shareholders.
The project takes A’Saffa’s annual broiler capacity from 48 million birds, a 25 per cent increase. The Board approved the plan in December 2024 at a time when the company was operating at full capacity and facing what it then described as “steadily increasing” demand for locally produced fresh and frozen poultry.
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