Saudia Dairy and Foodstuff Company (SADAFCO) Announces Steady Third Quarter Results
Driven by value sales across its various dairy and foodstuff categories and low international commodity prices, SaudiaDairy and Foodstuff Company (SADAFCO) has yet again registered an increase in its profits for the nine months that ended 31 December 2016.
According to the recently announced results, SADAFCO achieved a consolidated net profit of SAR 68.7 million for the Quarter and SAR 228.4 million for the nine-month period, an increase of 26.3% compared to the similar nine-month period last year (SAR180.9 million).
“Despite the competitive market conditions, SADAFCO’s sustained profitability is a clear reflection of the unwavering trust of our valued consumers, shareholders and our team in our ability to deliver high quality dairy and foodstuff products,” said Wout Matthijs, Chief Executive Officer, SADAFCO. “While prudent inventory management of raw materials vis-à-vis the international commodity prices is certainly helping us achieve our financial goals, we are also conscious of the fact that commodity prices can change quickly and are, in fact, already on the rise. So in parallel, we continue with our product portfolio expansion strategy, which is central to our long-term business aspirations.”
The recent results saw SADAFCO’s operating profit for the nine-month 2016 steadily grow to SAR 237.7 million, an increase of 23.5% compared to the same period in the previous year (SAR 192.4 million). The total gross profit for nine-month 2016 stood at SAR 576.6 million, an increase of 11.3% compared to the same period last year (SAR 517.8 million). Earnings per share (EPS) for nine-month 2016 were SAR7.01 compared to SAR5.55 for the same period last year.
“We are committed to maintain our premium branded position while delivering healthy margins and acquiring increased market share in milk, tomato paste, ice cream and other categories in which we are present,” added Matthijs. “The company has a healthy cash position of SAR 432 million with zero leveraging, and we continue to place emphasis on strong cost controls, prudent 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, Sparkling Fruit Drinks, Arabic Coffee, Soy Drink, Butter and French Fries