Records a 15.7% Net Profit increase to reach SAR 302
Jeddah: The Saudia Dairy and Foodstuff Company (SADAFCO) Annual General Meeting last evening approved the distribution of dividends amounting to SAR130 million at SAR4.00 per share, the equivalent of 40% of capital.
The approval came as shareholders met in Jeddah last night to conclude formalities for SADAFCO’s 2016-17 Financial Year.
The timing of the distribution of dividends will be announced later.
In spite of the challenges of declining consumer spending and price competition, SADAFCO experienced an increase in its profits for the year ended on 31 March 2017.
According to the results, a net profit of SAR 302 million was achieved, reflecting a growth of 15.7% over the previous year, as the company stayed true to the strategy of opting for branded value sales over top-line push.
Chief Executive Officer Wout Matthijs said: “We are happy with the year’s results in spite of the competitive market conditions where consumers have been exercising restraint and discipline when spending.”
“While sales declined by 6.3% to SAR1.858 billion, the company delivered an increased net operating income of SAR311 million, up 12.7% on last year.
Moreover, SADAFCO managed to boost its market positions in tomato paste, ice cream and total plain milk, illustrating the resilience and strength of the Saudia brand that is trusted and favoured by Saudis for the past 40 years.
Other resolutions passed last evening saw the approval of the Annual Report, Auditors Report and Financial Results for the year ended 31 March 2017.
Price Waterhouse Coopers (PWC) was appointed auditors for the year ending 31 March 2018.
The election of Board Members for the next three-year term commencing on 1 April 2018 was concluded. The Board members elected are HH Sheikh Hamad Sabah Al Ahmad, Faisal Hamad Mubarak Al-Ayyar, Saeed Ahmed Saeed Basamh, Ahmed Mohamed Hamed Al-Marzouki, Mussad Abdullah Abdul Aziz Al Nassar, Suliman Saud Jarallah Al-Jarallah and Abdullah Yaqoob Bishara.
The AGM also confirmed the Audit Committee for the same period to be comprised of Faisal Al-Ayyar, Tariq Mohamed Abdul Salam and Ahmed Al-Marzouki.
Established in 1976, SADAFCO is a leader in dairy and foodstuff manufacturing, importing, distributing and marketing in Saudi Arabia and has established a strong reputation and loyal following in the food and beverage industry across the GCC region.
About Saudia Dairy & Foodstuff Company (SADAFCO):
SADAFCO is a public-listed company which has been producing high-quality dairy and foodstuff products under the Saudia brand name since 1977, a year after the company was formed. Saudia enjoys market leadership in the Kingdom of Saudi Arabia in Tomato Paste and Ice Cream and the brand is a strong No 2 in the Drinking Milk category.
Based in Jeddah, SADAFCO operates sales and distribution depots in 24 locations across the Kingdom of Saudi Arabia, Qatar, Bahrain, Jordan and Kuwait. Saudia products are also exported to several countries in the MENA region.
SADAFCO currently operates three ISO22000:2005-certified factories in Saudi Arabia, two in Jeddah and one in Dammam. All three factories also have ISO14001 and OHSAS18001 accreditation.