Saudia Dairy and Foodstuff Company (SADAFCO) has registered a significant increase in its profits for the nine months that ended Dec. 31, 2016.
Sadafco attributed the profit growth to higher sales across its various dairy and foodstuff categories and low international commodity prices.
SADAFCO achieved a consolidated net profit of SR228.4 million for the nine-month period, an increase of 26.3 percent compared to the similar period last year (SR180.9 million).
“SADAFCO’s sustained profitability despite the competitive market conditions is a clear reflection of the unwavering trust of our valued consumers, shareholders and our team in our ability to deliver high quality dairy and foodstuff products,” said Wout Matthijs, chief executive officer of SADAFCO.
“While prudent inventory management of raw materials vis-a-vis the international commodity prices is certainly helping us achieve our financial goals, we are also conscious of the fact that commodity prices can change quickly and are, in fact, already on the rise,” he said.
He said that SADAFCO would continue its product portfolio expansion strategy, which is central to its long-term business aspirations.
The recent results saw SADAFCO’s operating profit for the nine-month 2016 steadily grow to SR237.7 million, an increase of 23.5 percent compared to the same period in the previous year (SR192.4 million).
The total gross profit for nine-month 2016 stood at SR576.6 million, an increase of 11.3 percent compared to the same period last year (SR517.8 million).
Earnings per share (EPS) for nine-month 2016 were SR7.01 compared to SR5.55 for the same period last year.
“We are committed to maintain our premium branded position while delivering healthy margins and acquiring increased market share in milk, tomato paste, ice cream and other categories in which we are present,” added Matthijs.
“The company has a healthy cash position of SR432 million with zero leveraging and we continue to focus on strong cost controls, prudent credit management and improved supply chain efficiencies.”
SADAFCO, established in 1976, has risen to become a leading dairy and foodstuff manufacturer, importer, distributor and marketer in Saudi Arabia.
The company’s product portfolio comprises of a wide range of items across several categories that include milk, laban, tomato paste, ketchup, snacks, ice cream, cheese, instant milk powder, cream, fruit nectars, sparkling fruit drinks, Arabic coffee, soy drink, butter and French fries.
Sadafco attributed the profit growth to higher sales across its various dairy and foodstuff categories and low international commodity prices.
SADAFCO achieved a consolidated net profit of SR228.4 million for the nine-month period, an increase of 26.3 percent compared to the similar period last year (SR180.9 million).
“SADAFCO’s sustained profitability despite the competitive market conditions is a clear reflection of the unwavering trust of our valued consumers, shareholders and our team in our ability to deliver high quality dairy and foodstuff products,” said Wout Matthijs, chief executive officer of SADAFCO.
“While prudent inventory management of raw materials vis-a-vis the international commodity prices is certainly helping us achieve our financial goals, we are also conscious of the fact that commodity prices can change quickly and are, in fact, already on the rise,” he said.
He said that SADAFCO would continue its product portfolio expansion strategy, which is central to its long-term business aspirations.
The recent results saw SADAFCO’s operating profit for the nine-month 2016 steadily grow to SR237.7 million, an increase of 23.5 percent compared to the same period in the previous year (SR192.4 million).
The total gross profit for nine-month 2016 stood at SR576.6 million, an increase of 11.3 percent compared to the same period last year (SR517.8 million).
Earnings per share (EPS) for nine-month 2016 were SR7.01 compared to SR5.55 for the same period last year.
“We are committed to maintain our premium branded position while delivering healthy margins and acquiring increased market share in milk, tomato paste, ice cream and other categories in which we are present,” added Matthijs.
“The company has a healthy cash position of SR432 million with zero leveraging and we continue to focus on strong cost controls, prudent credit management and improved supply chain efficiencies.”
SADAFCO, established in 1976, has risen to become a leading dairy and foodstuff manufacturer, importer, distributor and marketer in Saudi Arabia.
The company’s product portfolio comprises of a wide range of items across several categories that include milk, laban, tomato paste, ketchup, snacks, ice cream, cheese, instant milk powder, cream, fruit nectars, sparkling fruit drinks, Arabic coffee, soy drink, butter and French fries.
