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![video link button](/Content/en/images/attachement-icon.jpg)
Patrick Stillhart CEO of SADAFCO
Saudia Dairy and Foodstuff Co. (SADAFCO) continues to deliver close to a 10% net profit growth on a consistent basis despite unfavorable market conditions, CEO Patrick Stillhart told Argaam in a phone call.
SADAFCO held the leading position in terms of UHT milk, tomato paste, and ice cream. In all the three core categories, the company was able to strengthen its market share positions, leading to very strong number one positions in UHT Milk and tomato paste and a strong number one position in ice cream.
Sales increased by 28% from year-on-year (YoY) in the first quarter ended June 2022, with all these categories seeing higher market share, Stillhart added.
The sales growth was driven by the resumption of activities post the COVID-19 pandemic, nominal increases in selling prices, focus on e-commerce, the emphasis on markets outside the Kingdom and efficiencies on route to market operations.
The company’s financial performance is a direct result of the hard work and dedication of everyone at SADAFCO, the CEO said.
SADAFCO’s response to global events has driven it to innovate in business operations, logistics, and the entire business in general. This came although economies and companies around the world have been adversely affected by rising costs and inflation, which impacted the company in light of its size, scale, and operations.
“We continue to have a thorough look at our portfolio and make the needed adjustments, either by launching new products, improving existing products and potentially discontinuing certain SKU,” the CEO noted.
SADAFCO keeps on building and enforcing its capabilities and making organizational adjustment to serve its consumers better.
It has already realized efficiencies in its ice cream and milk factory, while continuing to work on getting even more efficient.
SADAFCO also embarked on using data and analytics to enhance business planning and raise efficiencies to fully cover the value chain.
The company has no loans. Hence, its business is not directly impacted by changes in interest rates, Stillhart concluded.
The dairy producer posted a 42% rise in Q1 2022/23 net profit to SAR 54.3 million, from SAR 38 million in the year-earlier period, Argaam earlier reported
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