SADAFCO’s Q1 2024 profit jumps 41% to SAR 126.2M

Saudia Dairy and Foodstuff Co. (SADAFCO) reported a net profit rise of 41% to SAR 126.2 million for the first quarter of 2024 from SAR 89.7 million in the year-earlier period.

Sales grew by 7.4% year-on-year (YoY) to SAR 718 million in Q1 2024, driven mainly by volume and market share gains across all categories. This increase was achieved despite increased competitive intensity.

Gross profit margins (GPM) increased to 36% from 30% in Q1 2023 due to lower raw material prices and product cost efficiency. GPM, excluding Mlekom, reached 40% in the three-month period.

Selling and distribution expenses stood at 15% of net sales, compared to 14.6% in Q1 2023. General and administrative expenses remained steady in absolute terms YoY at 3.7% of sales.

SADAFCO’s finance income grew by SAR 6 million amid higher interest rates on deposits. The net profit margin also increased to 17.6% in Q1 2024 from 13.4% in Q1 2023.

Compared to Q4 2023, the company’s net earnings jumped 20.7% from SAR 104.53 million, thanks to a 4.4% sequential rise in sales.

Total shareholders’ equity, after minority interest, reached SAR 1.83 billion as of March 31, 2024, up from SAR 1.67 billion a year earlier.

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