Jeddah, Saudi Arabia: Saudia Dairy and Foodstuff Co. (SADAFCO), the leader in the UHT (Long Life) Milk, Ice Cream and Tomato Paste market in the Kingdom of Saudi Arabia reported a significantly higher net profit (19%) for the second quarter compared to the same quarter last year.
The company reported net profit SAR 127.8 million for the quarter, a 19% increase in comparison to the same quarter of the previous year’s results of SAR 107.6 million. The company attributed the increase in a competitive environment to continuous investments in selling and distribution which have fueled growth and market dominance in the categories we operate in.
Patrick Stillhart, CEO, SADAFCO said: “Our strong financial results are an outcome of sustained focus on our growth drivers and priorities. We invested in new distribution channels, such as Out of Home (OOH), Export and E-Commerce which all grew by 37%, 67% and 29% respectively. Our market shares remain robust at: UHT Milk 63.0%, Tomato Paste 53.2% and Ice cream 32.1%. We continue to delight our consumers through new innovations especially in the Ice Cream category.”
ESG continues to be at forefront of SADAFCO’s strategy with environmental initiatives like reduced waste & water consumption. Additionally, SADAFCO has received A+ rating by SFDA in product quality and safety.
Year to date, SADAFCO reported strong financial results with a Net Profit SAR 254 million for the first half of 2024, reflecting a 29% increase from the SAR 197 million achieved in the same period last year. Sales higher by 7%, in SAR terms by 93 million across all categories and channels. Healthy Gross margin of 36.4% vs 32.4% reflect SADAFCO’s priority on profitable growth.
SADAFCO continues to focus on future by investing in its distribution and manufacturing capabilities, including new depots and enhancing Ice Cream manufacturing capabilities. The financial position of SADAFCO remains strong with Shareholders’ equity at a healthy SAR 1.8 billion and Cash Balance of SAR 595 million. During 2024, SADAFCO distributed SAR 12 per share in Cash dividends to its shareholders which was double than last year.
