JEDDAH — Low international commodity prices combined with favorable sales growth across its various dairy and foodstuff categories has enabled the Saudia Dairy and Foodstuff Company (Sadafco) to once again register an increase in its profits for the 12 months that ended on March 31, 2016.
Sadafco achieved a net profit of SR80 million, an increase of 172% compared to the same quarter last year (SR29 million). The increase in net profit has been attributed to favorable commodity prices and a growth in sales of 9.7% compared to the same period last year.
“The confidence and trust of our valued consumers, customers and shareholders in our ability to produce dairy and foodstuff products of the highest quality is what continues to sustain Sadafco’s profitability,” said Wout Matthijs, Chief Executive Officer, Sadafco. “We were able to leverage the strength of our brands and capitalize on favorable international commodity prices to realize our financial goals. We are also focused on expanding our product portfolio.”
The recent results saw Sadafco’s operating profit in Q4 2015/16 soar to SR83 million, a 145% increase in comparison to the similar quarter for previous year (SR34 million). Furthermore, the total gross profit for Q4 2015/16 stood at SR709 million, an increase of 28.3% compared to the same period last year (SR552 million).
“Having achieved a high-end single-digit growth throughout the fiscal year, we have solidified our position as the market leader in the tomato paste and ice cream categories and we have strengthened our No 2 position in drinking milk. Our goal now is to build on the momentum from the previous year and continue to boost Sadafco’s success and financial performance by investing in our brands while focusing on our core values and strengths,” added Wout.
EBITDA has improved to SR358 million, an increase of 59% compared to the same period last year (SR225 million) due to the investment in capital expenditure. Strong working capital ratios and a cash balance of SR246 million with zero leveraging have contributed to enhance shareholder value, with earnings per share (EPS) for Q4 2015/16 almost doubled to SR8.03 compared to SR4.35 for the same period last year. — SG
