Saudia Dairy and Foodstuff Co. report: Strong Q2 financial results

Saudia Dairy and Foodstuff Co. report: Strong Q2 financial results

Dubai, United Arab Emirates: Saudia Dairy and Foodstuff Co. (SADAFCO), the leader in the UHT (long life) milk market in the Kingdom of Saudi Arabia reported strong financial results for the second quarter of the financial year 2022/23.

SADAFCO reported a significantly higher net profit of 12.4 percent compared to 10.1 percent in the previous quarter and 31 percent higher from the same quarter in the previous year due increased focus on sale of high margin SKU’S primarily in ice cream (25%) and milk (28%) and tomato paste (28%); production efficiencies in Jeddah factories through automation and prudent sourcing of raw materials and enhanced penetration in the market.

Despite the inflationary pressures that persist across the business globally, SADAFCO are cautiously optimistic regarding the decline of inflationary trend in the raw materials as the net profit for this quarter is SAR 86Mln which increased by SAR 29.8Mln (53%) compared to last quarter due to 10% higher sales.

Whilst inflationary pressures persist across the business world, we are cautiously optimistic to see a decline in the inflationary trend for raw materials. Selling & distribution expenses were reduced from 14.4 to 11.5% in comparison to the same period in the previous year but were higher