Armela Farms
System Evaluation Report v3.0
Interactive Financial Model

Financial Model

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Annual Production
1,497t
4,103 kg/day
Total Revenue
AED 59.90M
3,593,801 punnets
Total OpEx/yr
AED 17.94M
AED 12/kg
Gross Profit
AED 41.95M
70.0% margin
Break-Even Price
AED 20.86/kg
Full cost (OpEx + CapEx)
Payback Period
3.2 years
ROI: 31.6%/yr

Project Basics

Each block is 26m × 8m = 208 m²
blocks
3 tiers × 2,400 plants per tier
plants
2 waves = 28w offset | 3 waves = 12w offset | 4 waves = 14w offset. More waves = smoother daily supply.
waves
Weeks of active harvest per cycle. Cycle = 8w establishment + harvest weeks + 4w turnaround. Affects seedling, substrate & cycles/yr — NOT production per plant.
weeks
Conservative: 2.0 | Realistic: 2.5 | Optimised: 3.0 | Peak: 3.5
kg/plant/yr
% of harvest that is A-grade marketable
fraction
Remaining % sold as 250g punnets
%
🌊

Planting Wave Model

How the number of waves affects supply consistency and costs

Wave Structure — 2-Wave System
Wave A
Wk 0
50% of blocks
Wave B
Wk 28
50% of blocks

Each wave plants its share of blocks at the indicated week offset within the 56-week cycle. All waves replant 0.93× per year.

Cycle Breakdown
8w
Establishment
+
44w
Harvest
+
4w
Turnaround
=
56w
Total Cycle
0.93 cycles/year — each wave replants 0.93× per year
Supply Smoothness
Low — significant daily variation
Est. Peak Daily Output
7,590 kg/day
Seedlings / Year
668,571
720,000 plants × 0.93 cycles/yr
Annual Seedling Cost
AED 1,203,428
Bumblebee Cost — Rolling Replacement Model
AED 234,000
Continuous rolling replacement — independent of wave count and harvest weeks.
⚡ Turnaround Labour — Wave-Dependent Cost
AED 232,500
93 turnaround events/yr × AED 2,500 per event. No coordination overhead (baseline 2-wave system).
📌 Key Insight

Changing the number of waves does not change total annual production or seedling count. The wave-dependent cost is Turnaround Labour: each additional wave beyond 2 adds a 5% coordination overhead to turnaround cost (scheduling, supervision, simultaneous block management). Bumblebee cost is a fixed rolling-replacement model — independent of wave count.

Full Financial Summary

PRODUCTION
Total Plants720,000
Annual Production (marketable)1,497,417 kg
Daily Average Output4,103 kg/day
Annual Punnets (250g)3,593,801
REVENUE
Revenue — Loose kg SalesAED 16,771,070
Revenue — 250g Punnet SalesAED 43,125,610
Total Annual RevenueAED 59,896,680
CAPEX
Total Capital ExpenditureAED 132,900,000
CapEx per m² (growing area)AED 6389/m²
CapEx per PlantAED 184.58/plant
Annual DepreciationAED 13,290,000
OPEX (ANNUAL)
Total Operating CostAED 17,944,122
OpEx per kg ProducedAED 11.98/kg
OpEx per m² per YearAED 863/m²/yr
PROFITABILITY
Gross Profit (Revenue − OpEx)AED 41,952,558
Gross Margin70.0%
EBITDAAED 41,952,558
Net Profit (after depreciation)AED 28,662,558
Net Margin47.9%
RETURNS
Break-Even Price (OpEx only)AED 11.98/kg
Break-Even Price (Full Cost)AED 20.86/kg
Payback Period3.2 years
Return on Investment31.6%/yr
10-Year NPVAED 136,951,591
10-Year Cumulative Cash FlowAED 274,039,813

10-Year Cash Flow & Cumulative Position

Year 1 at 70% ramp-up. Cumulative includes initial CapEx outlay of AED 132.90M.

Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 100M+15M+30M+45M+60M
  • Annual Cash Flow (AED K)

OpEx Breakdown

Total annual operating cost: AED 17,944,122

Energy
22.9%AED 4.10M
Labour (all)
28.4%AED 5.09M
Turnaround Labour
1.3%AED 233K
Seedlings
6.7%AED 1.20M
Substrate top-up
1.1%AED 205K
Bumblebees
1.3%AED 234K
Fert. & Pest.
3.5%AED 624K
Packaging
10.0%AED 1.80M
Other
24.8%AED 4.46M

Revenue vs. Cost Structure

0M35M70M105M140MTotal CapExAnnualRevenueAnnualOpExGrossProfit