Ice cream sales deliver cool quarter for Saudi Arabia’s Sadafco

Sadafco said that the tripling of value added tax in the Kingdom had a significant impact on shopping basket cost. (AFP file photo)
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Updated 20 October 2020

Ice cream sales deliver cool quarter for Saudi Arabia’s Sadafco

  • Second-quarter net profit rose 7.9 percent to $18.7 million

LONDON: Ice cream sales helped to boost earnings at Saudia Dairy and Foodstuff (Sadafco) in the second-quarter as the food processor maintained its market share in the Kingdom.

Second-quarter net profit rose 7.9 percent to $18.7 million (SR70.2 million) compared with a year earlier, the company said in a stock exchange filing.

Food companies worldwide have had mixed fortunes this year as lockdowns helped to boost sales across many product lines while logistical problems hampered attempts to satisfy customer demand.

Sadafco said sales of both ice cream and consumer milk rose 2 percent over the quarter while tomato paste sales jumped by 15 percent. Its gross profit margins were broadly in line with a year earlier at 33 percent.

“Our performance this quarter and this period continues to strengthen over last year,” the company said in a statement on Tuesday.

However, it said that the tripling of value added tax (VAT) in the Kingdom had a significant impact on shopping basket cost.

Sadafco is expanding operations in Saudi Arabia with the construction of a new ice cream factory and the planned acquisition of Horizon Food Factory.

It currently operates two factories in Jeddah and another in Dammam.


Egypt plans big rail expansion, nears agreement with Bechtel

Updated 13 min 15 sec ago

Egypt plans big rail expansion, nears agreement with Bechtel

  • Egypt also plans a 438.5km fast rail at a cost of $8.2 billion

CAIRO: Egypt is rushing ahead with plans for an expansion of its metro and railway networks and is near agreement with Bechtel to implement Cairo’s sixth metro line, Transport Minister Kamel Al-Wazir said on Monday.

Speaking to the American Chamber of Commerce, Wazir said most of the bigger transport projects, which also include dry ports and river transport, should be finished by the end of 2024.

Egypt was working on a memorandum of understanding with Bechtel for feasibility studies and implementation of the $5 billion, 30km sixth metro line, he said.

“Just yesterday we had the contracts and we quickly reached near-agreement,” Wazir said.

“We told them to submit a written offer. If we reach agreement we will begin working at once and expedite all the contracts and agreements.”

Egypt had lined up finance for the metro line from Canada, America, Britain, France and Japan, Wazir said. He did not give its route, but reports have said it will run east of the Nile from north to south.

Last week, Egypt’s Orascom Construction said it and Japan’s Mitsubishi Corporation had signed an $800 million contract with Egypt’s National Authority for Tunnels for work on the 19km first phase of Cairo’s fourth metro line, with financing from Japan.

That line will extend underground from central Cairo to the Pyramids to the west, connecting 16 stations.

Among planned new railways around Cairo are a 49km $175 million line from 6th of October city to the Nile north of Cairo, a 69km $235 million cargo line from Bilbeis to eastern Cairo and a $435 million, 227km dual line to Atay Al-Baroud on the western edge of the Delta.

Egypt also plans a 438.5km fast rail at a cost of $8.2 billion.

In Alexandria it plans a $1.7 billion metro line to the eastern suburb of Abu Qir and a $406 million upgrade of an above-ground tramline through the city.