Saudia Dairy and Foodstuff Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Six Months )

Saudia Dairy and Foodstuff Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Six Months )

| SADAFCO’S performance is analysed as follows:

|

1. Dairy & Foodstuff business representing Milk, Ice cream, Tomato Paste & others.

2. Commodity business representing Polish operations.

Dairy & Foodstuff

This business delivered a net profit margin of 21.3% vs 16.4% last year. The strong performance (+5%) is attributable to:

• Sales growth of 11.4% as a result of re-launch of Saudia brand, marketing campaign of flagship Sandwich Ice cream, back to school activities; opening of new sales routes; efficiencies in route to market; induction of new ice cream freezers and continued growth in ice cream innovations. These initiatives generated incremental sales across all categories i.e., milk (8%), ice cream (22%) and tomato paste (10%) and launch of UHT Barista.

• A healthy Gross Margin of 41.0 % vs 33.8% last year was achieved due to lower cost of raw materials, sale of high margin SKU’s; profitable channel focus, and production efficiencies in the factories.

• Selling & distribution expenses as % of sales increased (15.0% vs.12.4% last year) due to higher A&P spend to achieve sales growth.

• General & administrative expenses as % of sales remained the same as last year (4.2%).

• Finance income increase of SAR 6.6 Mln vs last year reflects higher deposit rates.

• Zakat