Almarai: agrees final settlement over bakery fire

Riyadh / SA. (ac) Pursuant to its previous announcements related to the fire incident in its Western Bakery facilities Jeddah in October 2014 – Western Bakeries is a wholly owned subsidiary of Almarai Company – Almarai now announces that it has reached in June 2015 a full and final settlement with Arabian Shield Cooperative Insurance Company (ASICO) regarding its property damage and business interruption claims pertaining to the fire damage to Western Bakeries Plant 1 and 3 in Jeddah on 09th October 2014.

The amount finally agreed reached 790 million SAR, net of the policy excesses applicable under both policies. The payment on account of 250 million SAR received by Almarai on 25th March 2015, will be off-set against this final payment. This settlement will have a neutral effect on the income statement as of the end of June 2015, as the net proceeds will be used to offset various partial assets write-off and goodwill amortization.

Thanks to the effective insurance cover provided by ASICO, Almarai is in a strong position to re-invest, as per its re-instatement plan, and re-gain its market presence, through improved operational efficiency and enhanced quality of services and products in the bakery segments that had been affected by this incident (Imgage Source: Almarai).