Revenue grows by 1.7% and net profit increases by 7.6% quarter-on-quarter.
Jeddah : Saudia Dairy and Foodstuff Company (SADAFCO) has announced its financial results for the second quarter of 2026, reporting improved revenue and profitability compared with the previous quarter, supported by continued momentum across its core business.
Revenue reached SAR 750 million, increasing by 1.7% quarter-on-quarter, while net profit attributable to shareholders rose by 7.6% to SAR 88 million. The improvement reflected higher sales, a favourable product mix and improved operating profitability.
Excluding SADAFCO’s Polish subsidiary (Mlekoma), quarterly revenue increased by 6.9% year-on-year to SAR 688 million, mainly driven by higher sales volumes across key product categories.
Net profit was impacted by higher raw material costs, surcharges related to regional maritime disruptions, broader inflationary pressures and increased fuel prices. Despite these pressures, SADAFCO maintained a healthy net profit margin of 11.8%.
Performance during the quarter was also supported by continued momentum across emerging channels, particularly out-of-home and e-commerce, which delivered strong value growth. SADAFCO continued to focus on investing in its brands, improving operational efficiencies and proactively managing supply-chain risks amid ongoing regional developments.
SADAFCO maintained its market-leading positions across key categories, with market shares of 59.1% in long-life plain milk, 51.1% in tomato paste and 30.9% in ice cream. The company also strengthened its position in long-life flavoured milk, increasing its market share to 22.7%.
For the first six months of 2026, consolidated revenue reached SAR 1,488 million, while net profit attributable to shareholders reached SAR 170 million. SADAFCO maintained a strong balance sheet and a robust cash position of SAR 554 million, including short-term investments.
SADAFCO’s Q2 2026 results
Commenting on the results, Patrick Stillhart, Chief Executive Officer of SADAFCO, said: “Our second-quarter results reflect continued progress across our core business, with revenue and profitability improving compared with the previous quarter. We maintained momentum across key categories and emerging channels. We remain focused on investing in our brands, improving operational efficiency and strengthening our market leadership to create sustainable long-term value for our shareholders.”
SADAFCO’s Growth Strategy and Market Performance
SADAFCO’s second-quarter performance highlights the importance of maintaining strong brand recognition, managing costs and responding to changing consumer demand in Saudi Arabia’s food and beverage market. The company’s ability to increase revenue and net profit compared with the previous quarter reflects continued progress in its core operations, despite inflationary pressures and supply-chain challenges affecting the wider business environment.
Its strong positions in long-life milk, tomato paste and ice cream provide an important foundation for continued growth. These categories serve a broad consumer base and contribute to the company’s presence across retail and food service channels. Maintaining market leadership requires consistent product quality, effective distribution and continued investment in brands that consumers recognise and trust.
Emerging Channels Support Revenue Growth
The growth of out-of-home consumption and e-commerce presents additional opportunities for SADAFCO to expand its reach. Out-of-home channels serve customers such as restaurants, cafés, hotels and other food service businesses, while e-commerce allows consumers to purchase products through digital platforms.
Developing these channels can help food manufacturers reach new customers and respond to evolving purchasing habits. For SADAFCO, continued momentum in these areas supports its broader efforts to diversify sales channels and strengthen its connection with consumers and business customers.
Digital commerce also creates opportunities to improve product visibility, reach targeted customer groups and make purchasing more convenient. As competition across the food and beverage sector continues, companies that combine established retail distribution with emerging sales channels may be better positioned to respond to market changes.
Managing Costs and Supply-Chain Challenges
Despite its improved quarterly results, SADAFCO continues to face cost pressures associated with raw materials, fuel prices, inflation and regional maritime disruptions. These factors can affect procurement expenses, transportation costs and the movement of goods across international supply chains.
For food manufacturers, effective supply-chain management is particularly important because production depends on reliable access to ingredients, packaging materials and distribution networks. Higher operating expenses can place pressure on margins, making cost control and operational efficiency essential to maintaining profitability.
SADAFCO’s reported net profit margin of 11.8% demonstrates its ability to remain profitable during a challenging quarter. Continued attention to production efficiency, inventory management and supply-chain resilience will remain important as the company navigates changing market conditions.
Strong Financial Position Supports Future Priorities
The company’s cash position of SAR 554 million, including short-term investments, provides financial flexibility to support operational requirements and strategic priorities. A strong balance sheet can help businesses manage unexpected expenses, invest in infrastructure and maintain continuity during periods of market uncertainty.
Looking ahead, SADAFCO’s focus on brand investment, operational improvements and market leadership will be central to its growth strategy. Its first-half revenue of SAR 1,488 million and net profit attributable to shareholders of SAR 170 million provide a broader view of its performance during the opening six months of 2026.
As Saudi Arabia’s consumer market continues to evolve, SADAFCO’s ability to balance growth with cost discipline will be important to sustaining profitability. Continued development across core product categories and emerging sales channels could help the company reinforce its competitive position while pursuing long-term value for shareholders.
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Ahmed Abdul Wasey
Managing Editor, Eat ‘N Stays
Ahmed Abdul Wasey is the Managing Editor in Eat ‘N Stays, overseeing all editorial coverage of travel, hospitality, and food across Saudi Arabia and the wider Gulf region. He sets the publication’s editorial direction and reviews coverage across hotels, restaurants, tourism, cruise, and industry news before it publishes.
Have a story tip, correction, or question about our coverage? Reach Ahmed directly at pr@eatnstays.com.
