- Net Profit Reached SAR 159 Million; a 41.8% Increase Compared to the Same Period Last Year.
- Shareholders Equity for the Period was Valued at SAR 1.1 Billion
Jeddah: Driven by consumer brand loyalty, lower raw material costs and continuous improvement in efficiencies, Saudia Dairy and Foodstuff Company (SADAFCO) realized a SAR 47 million (41.8 percent) increase in net profit during the six-month period ending on 30 September 2016, compared to the same period last year.
“SADAFCO continues to strengthen its premium branded position despite the current challenging market environment,” said Wout Matthijs, CEO of SADAFCO. “We were able to secure healthy margins and, despite the lower sales value, we achieved a modest increase in volume, which resulted in continuous growth in market share, especially in our key categories of Milk, Tomato Paste and Ice Cream.”
Compared to the second quarter of the previous year, SADAFCO earned double-digit growth in Net Profit, increasing by 36 percent from SAR 54 million to SAR 73.5 million. Gross Profit increased by 13.89 percent to SAR 189 million and Operational Profit increased by 29 percent to SAR 75.2 million.
Shareholders equity for the period was valued at SAR 1.1 billion, an 18 percent increase in comparison to the same period last year when it was worth SAR 946 million.
Furthermore, in terms of Earnings-Per-Share, during the current six-month period, SADAFCO realized a 42 percent increase from SAR 3.46 to SAR 4.91, compared to the same period the previous year.
“The company has a strong financial position that enhances shareholders value,” stated Matthijs. “We currently have a healthy cash balance with no leverage as a result of strong control, commercial credit management and improved supply chain efficiencies.”
Established in 1976, SADAFCO has risen to become a leading dairy and foodstuff manufacturer, importer, distributor and marketer in Saudi Arabia and has established a strong reputation and loyal following in the food and beverage industry across the GCC region.
The company’s product portfolio comprises of a wide range of items across several categories that include: Milk, Laban, Tomato Paste, Ketchup, Snacks, Ice Cream, Cheese, Instant Milk Powder, Cream, Fruit Nectars, Arabic Coffee, Soy Drink, Butter and French Fries.
About Saudia Dairy & Foodstuff Company (SADAFCO):
SADAFCO is a publicly-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 Plain 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.