SADAFCO profit down 20% to SAR 207.3 mln in FY 2021/22; Q4 rises to SAR 61.4 mln

Saudia Dairy and Foodstuff Co. (SADAFCO) reported a net profit after Zakat and tax of SAR 207.3 million for the fiscal year ended on March 31, 2022, a drop of 20% from SAR 260.6 million in the year-earlier period. 

The profit drop was ascribed to a rise in the costs of key raw materials, increased local and international logistics costs, and reduced purchasing power of consumers due to the full-year impact of a 15% VAT, compared to nine months last year.

Moreover, selling and distribution expenses as a percentage of total sales rose to 14%, accounting for SAR 311 million, compared to SAR 307 million in the previous fiscal year.

General and administrative expenses increased to 5% of total sales, or SAR 113 million compared to SAR 109 million last year.

SADAFCO also cited a decline in other operating income, which represents profit from scrap sales, lower finance income, along with an increase in Zakat and income tax.

On the other hand, sales grew by 3% year-on-year (YoY) to SAR 2.170 billion. Impairment losses on financial assets (provision for trade receivables) decreased to SAR 1.2 million from SAR 2.1 million a year earlier.

Shareholders’ equity, excluding minority rights, reached SAR 1.540 billion by the end of the fiscal year, compared to SAR 1.533 billion a year earlier.  

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