Riyadh – Mubasher: Horizon Food Company, a prominent player in the Saudi food sector, has announced the signing of a strategic supply contract with commercial trading company Ertagh.
The agreement was signed on 24 June 2026 and aims to broaden the distribution of Horizon Food’s processed products across the Kingdom of Saudi Arabia, according to a bourse filing.
With a projected financial impact beginning in the third quarter (Q3) of 2026, the contract is expected to represent a significant portion of the listed company’s annual revenue, potentially exceeding 5% of its total earnings for the 2025 fiscal year.
The contract formalizes a partnership between Horizon Food and Ertagh, a leading entity in the regional food and logistics sector.
Under the terms of the agreement, Horizon Food will supply a diverse range of food products manufactured at its facilities, with a specific focus on its "Iskander" brand of pre-cooked shawarma. The partnership is designed to leverage Ertagh’s extensive distribution network to ensure the availability of these products in commercial centers and retail outlets throughout the Kingdom.
The agreement was officially signed by Khadem Hussain Sarwar, CEO of Horizon Food, and Abdullah Mohammed Sankar, representing Ertagh. Both parties emphasized that the collaboration is rooted in a mutual strategy to enhance supply chain resilience and meet the growing consumer demand for high-quality, ready-to-eat food products. For Horizon Food, the move is a tactical step toward increasing its market footprint, while Ertagh seeks to diversify its portfolio with premium processed goods.
From a financial perspective, Horizon Food disclosed that the total value of the contract is variable, as it is based on supply volumes and fluctuating order sizes inherent in the food trading business. However, the company anticipates that the deal's value could surpass 5% of its total revenues for the 2025 fiscal year.
The contract has an initial duration of two years and includes a clause for automatic renewal, provided that neither party expresses a desire to terminate the agreement within the specified notice period. This long-term structure is intended to provide stability to the supply chain and support the sustained growth objectives of both organizations.
In compliance with regulatory transparency requirements, Horizon Food confirmed that there are no related parties involved in this transaction. The company also noted that Ertagh has already commenced the preliminary supply and provision of the cooked Iskander shawarma products in several commercial hubs across Saudi Arabia, signaling an immediate start to the operational phase of the partnership.
The signing of this strategic contract represents a significant milestone for Horizon Food as it seeks to optimize its distribution channels and capitalize on the expanding food services market in Saudi Arabia. By aligning with a major distributor like Ertagh, the company aims to solidify its market position and drive revenue growth through increased accessibility of its specialized product lines.
