‎SADAFCO shows healthy performance, likely to maintain current growth rates: CEO

‎SADAFCO shows healthy performance, likely to maintain current growth rates: CEO

Saudia Dairy and Foodstuff Co. (SADAFCO) showed a positive performance in the second quarter ended in September 2023, as it was able to enter and grow in the consumer market by enhancing the value and volume of each purchase transaction, the CEO, Patrick Stillhart told Argaam.

This was despite SADAFCO’s challenges in Poland business, on rising raw material costs and global market conditions.

Stillhart cited the profit growth to the significant rise in revenues by 11%, with the exception of Poland’s Mlekoma, and lower input costs, especially in dairy prices.

By the end of Q2 2023, sales and profits hit their peak supported by higher sales of ice cream and profit margin, as the ice cream business was the largest contributor to revenues, due to seasonality, he said.

The CEO expected that SADAFCO to maintain similar growth rates by Q3, however the performance would retreat.

Dairy products constitute about 70% of SADAFCO sales, while ice cream represents 15%, and the rest includes tomato paste products.

The performance of Poland’s Mlekoma was negatively affected by a decline of nearly SAR 7 million in the value of goodwill, in addition to a significant fall in the prices of raw materials in the global market, especially in the dairy