SADAFCO profit leaps 50% to SAR 327.6M in 9M 2023/24, Q3 at SAR 104.6M

Saudia Dairy and Foodstuff Co. (SADAFCO) reported a net profit of SAR 327.6 million for the nine-month period ended Dec. 31, 2023, a 50% increase from SAR 218.3 million in the year-earlier period.

The profit rise was fueled by a 10.8% year-on-year (YoY) hike in sales, mainly due to higher sales volumes and market share across all segments.

The gross profit margin grew to 38.8% in the current period, from 33.5% a year earlier, due to lower raw material costs, besides a favorable product and category mix and cost efficiency at factories.

General and administrative expenses remained marginally lower than last year as a result of the oversight and controls on expenditure.

The Q3 2023/24 net earnings leapt 33% YoY to SAR 104.6 million, as dairy and foodstuff sales grew by 4.4% YoY on focused distribution and sound marketing investments. The frozen and ambient products categories rose by 14.9% and 2.8% YoY during the same period.

The company also posted a healthy gross margin of 37.5% in Q3 2023/24 versus 32.4% last year. General and administrative expenses also remained flat YoY at 4.5% during the same period.

On a sequential basis, Q3 2023/24 net profit dropped 8.6% from SAR 114.47 million.

Shareholders’ equity, after minority interest, stood at SAR 1.90 billion by the end of the nine-month period, compared to SAR 1.66 billion in the year-earlier period.

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