SADAFCO maintains strong market share, expects continued demand

Patrick Stillhart, CEO of Saudia Dairy and Foodstuff Co. (SADAFCO)

Patrick Stillhart, CEO of Saudia Dairy and Foodstuff Co. (SADAFCO), said the strong demand for the company’s products is likely to persist given its robust market share, indicating that the company is cautiously optimistic in the short term about its performance amid the macroeconomic challenges, especially supply chain factors and geopolitical factors.

In an interview with Argaam, Stillhart pointed to his confidence in SADAFCO’s ability to maintain its sound performance, given the strength of its Saudi brand and the company's strong financial position.

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The company maintained firm market shares in its main products, with sterilized milk accounting for 63.0%, followed by tomato paste (53.2%) and ice cream (32.1%), the CEO added. 

In terms of financials, he said the 19% and 29% year-on-year (YoY) hikes in SADAFCO’s Q2 and H1 2024 earnings, respectively, were due to the competitive business environment and the company’s ongoing investments in sales and distribution. This, in turn, helped fuel growth and market dominance in the business divisions in which it operates in.

The dairy and the ice cream products witnessed an annual sales rise of 2.7% and 22.1%, respectively, the executive noted, adding that export sales increased by 67% YoY.

He explained that construction work on the new Yanbu warehouse project is underway and is expected to be completed by the end of this year.

Stillhart explained that SADAFCO is driving continuous innovation and is looking to launch several products in the frozen, dry, cooking and out-of-home categories. In addition, it is working to strengthen its GCC footprint by seeking distribution and export deals, while further diversifying through potential new acquisitions.

According to data available on Argaam, SADAFCO reported a net profit of SAR 254 million in the first half of 2024, up 28% from SAR 199 million a year earlier. The second-quarter bottom line also grew to SAR 127.8 million.