Chief Executive
Officer's Review

While there was a decline in some short-term income streams during the reporting period, net profit surged by 22% year-on-year reflecting strong performance in our growth assets, disciplined cost management, and reduced interest expenses following effective deleveraging. Net Asset Value (NAV) increased 11% year-on-year, on the back of the previous year’s 21% growth, while total shareholder equity expanded by 10.7%. Meanwhile, our diversified portfolio delivered a 22% growth in earnings per share (EPS) in 2024, reinforcing KHC’s ability to generate sustainable long-term value for valued shareholders.

The equity portfolio saw strong returns in 2024, particularly in the finance and technology sectors, validating our investment strategy. A decision we had taken in 2023 to average down our stake in Citibank delivered substantial dividends in 2024, while our investments in Hercules Capital following recent developments also resulted in significant returns. Meanwhile, the equity investments portfolio, valued at 18.2 Bn, continued to support long-term NAV growth, balancing stable dividend-yielding assets with high-growth sectors such as artificial intelligence, fintech, and industrial technology.

Venturing further into the rapidly growing domain of artificial intelligence (AI), we were able to cover wider ground in the technological segment within the equity portfolio. Increased exposure to cutting-edge industries through investments in xAI, Elon Musk’s San Francisco-based startup, has positioned KHC as a major player in the ongoing transformation of the global economy.

In the aviation sector, meanwhile, our investment in low-cost airline flynas, of which we 37.2%, continued to perform strongly, paving the way to a potential IPO.

Our hospitality portfolio delivered record-breaking performance in 2024. The iconic George V Paris property posted significant net operating income (NOI) despite half its inventory still undergoing renovations, while, at home, the Four Seasons Riyadh also continued its growth trajectory. Meanwhile, with construction making much progress, the Four Seasons Resort Red Sea project is set to start welcoming guests by Q4 2025, positioning KHC at the forefront of Vision 2030’s tourism agenda. The 180-key luxury property, an 2 Bn. joint venture with Red Sea Global, is expected to run entirely on renewable energy, in what will be a landmark development in sustainable luxury tourism.

A significant valuation uplift across Kingdom Tower, Kingdom Mall, and Four Seasons Riyadh strengthened our real estate asset class in 2024. Construction of the Jeddah Tower, the centrepiece of our land portfolio, which had been on hiatus also resumed in October 2024 generating much international press coverage.

Our land portfolio also continued to benefit from Vision 2030 initiatives throughout 2024, further enhancing asset value.

The Group maintained a diversified debt profile in 2024, ensuring financial vigour while also optimising capital structures. Our deleveraging efforts during the reporting period served to significantly lower interest expenses, boosting profitability and stability. While divested assets and international dividend timing differences exerted some revenue pressures, our strategic portfolio shifts, disciplined cost controls, and strong investment performance enabled an increase in shareholder value, all in the face of continued inflationary pressures and fluctuating prices in the global energy market. We also strategically monetised USD 1.5 Bn. worth of mature investments during the year, focusing on managing debt in a high interest rate environment.

We must also emphasise the significant progress made on advancing sustainability goals in 2024. Aligning with Vision 2030 and global ESG best practices, prudent measures were taken to reduce carbon emissions across our hospitality and real estate assets, with initiatives focused on renewable energy, energy efficiency, and responsible luxury. We also supported youth employment initiatives during the year, while working to improve ESG transparency. Our George V property became the only five-star luxury hotel in the world to achieve dual “Excellent” BREEAM In-Use certifications, setting new benchmarks for environmental performance, while the Savoy London also earned the Green Key UK Certification.

As we move further into 2025, we seek to capitalise on emerging opportunities. KHC is actively exploring new high-growth sectors including artificial intelligence, healthcare, and renewable energy. With its IPO on the horizon, the flynas investment continues to record robust performance.

I wish to extend my sincere gratitude to our board, shareholders, employees, and partners for their unwavering trust and dedication. Together, we shall continue to drive KHC’s legacy of excellence, innovation, and strategic growth in the coming years.