‎How did SADAFCO realize highest quarterly profit in almost 13 years?

Saudi Arabia

‎How did SADAFCO realize highest quarterly profit in almost 13 years?

Saudia Dairy and Foodstuff Co.’s (SADAFCO) financial results were higher than average expectations during the second quarter ended Sept. 30, 2022, after rising to its highest level in nearly 13 years to reach about SAR 85.6 million, a surge of more than 57% from the same and previous quarter.

This was mainly driven by the collective growth in the operational revenues, increase in sales of all types of products, improvement in market share, seasonality of demand for products, return to schools, opening new outlets and addition of new products, the company stated.

The profit of the beverage segment – SADAFCO’s core business division – more than doubled from the same and previous quarter, reaching SAR 69.3 million, thanks to a 27% sales growth.

The segment benefited from the higher market share of dairy products, rising to 61.3% in Q2 2022/23, compared to 61.1% for the same quarter a year earlier. This came despite higher depreciation and amortization expenses of about SAR 20.8 million, compared to SAR 16.3 million for the year-earlier period.

Sales revenue from the non-beverage segment extended its uptrend for the third consecutive quarter, rising 36% year-on-year (YoY) and 5% quarter-on-quarter (QoQ) to SAR 314.5 million, backed by a 25% growth in