SADAFCO profit up 59% to SAR 223 mln in H1 2023/24; Q2 at SAR 114.5 mln

Saudia Dairy and Foodstuff Co. (SADAFCO) reported a net profit of SAR 223 million in the first half of 2023/24, ended Sept. 30, 2023, up 59% from SAR 139.9 million a year earlier

The profit growth was driven by a 14% year-on-year (YoY) increase in sales value driven mainly by volume and market share gains across all categories.

Gross profit margin increased to 39.2% from 34.1% a year earlier due to lower raw material costs, favorable product and channel mix and prudent sourcing of raw materials.

On the other hand, selling and distribution expenses increased to 15.2% of net sales from 13.3% last year. General and administrative expenses remained in line with last year due to overhead control.

Finance income increased by SAR 14 million as a result of higher deposit rates, while finance costs were higher mainly due to final settlement of put option liability.

The sale and profitability of Poland has declined.

The second-quarter net profit grew 34% YoY to SAR 114.5 million.

The Q2 2023/24 earnings rose 5.5% from SAR 108.54 million in the previous quarter.

Total shareholders’ equity, before excluding minority interest, reached SAR 1.80 billion as of Sept. 30, 2023, compared to SAR 1.58 billion a year earlier.

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