Saudia Dairy and Foodstuff Company (SADAFCO) reports a healthy net profit of 13% despite the various challenges.
SADAFCO continues to expand its market footprint in the ice cream sector with 18% growth in sales in line with the strategic expansion plans of this category. Tomato paste sales also grew 4% year on year.
Overall revenue for the three-month period, which ended on December 31, declined 1.3% year on year to SAR 482 million. The decline in revenue was mainly due to reduction milk value sales triggered by irrational pricing policies adopted by competitors.
“In Q3, SADAFCO continues to deliver a healthy double-digit net profit.” said Wout Matthijs, Chief Executive Officer, SADAFCO. “This reflects strong consumer loyalty to our brand and remain positive once the under construction new ice cream factory commences trial operations in May 2021. There has been a higher half year dividend of SAR 3 per share (a 20%) increase, reflecting the continuous upward trajectory of our dividend payouts and the strong financial position of SADAFCO.
Established in 1976, SADAFCO is a leader in dairy and foodstuff manufacturing, importing, distribution and marketing in Saudi Arabia and has established a strong reputation and loyal following in the food and beverage industry across the GCC region.