JEDDAH — Driven by consumer brand loyalty, lower raw material costs and continuous improvement in efficiencies, Saudia Dairy and Foodstuff Company (Sadafco) realized a SR47 million (41.8 percent) increase in net profit during the six-month period ending on Sept. 30, 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 SR54 million to SR73.5 million. Gross profit increased by 13.89 percent to SR189 million and operational profit increased by 29 percent to SR75.2 million.
Shareholders equity for the period was valued at SR1.1 billion, an 18 percent increase in comparison to the same period last year when it was worth SR946 million.
Furthermore, in terms of Earnings-Per-Share, during the current six-month period, Sadafco realized a 42 percent increase from SR3.46 to SR4.91, compared to the same period the previous year.
“The company has a strong financial position that enhances shareholders value,” said 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. — SG
