SADAFCO profit up 28% to SAR 254M in H1 2024; Q2 at SAR 127.8M

Saudia Dairy and Foodstuff Co. (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 profit growth was driven by a 6.9% year-on-year (YoY) increase in sales value to SAR 1.44 billion in the first six months of 2024, versus SAR 1.34 billion last year, thanks to a market share gain in most of the company’s business divisions.

This came as the gross profit margin (GPM) climbed to 36.4% in H1 2024, from 32.4% a year ago, on lower raw material costs, cost efficiency in the factories and profitable product mix. However, for the same period, the GPM excluding Mlekoma’s results amounted to 40.3%.

Selling & distribution expenses remained at 15.2% of net sales in H1 2024, from 14.7% last year. Meanwhile, general & administrative expenses came in at 3.8% of sales, below last year’s level.

Finance income increased by SAR 500,000 on annual basis in H1 2024 because of higher Murabaha deposit rates.

Mlekoma’s gross profit margin improved to SAR 3.8 million in H1 2024, compared to loss-making last year. 

The second-quarter net profit grew 17.7% from SAR 108.54 million in Q2 2023 to SAR 127.79 million.

The quarterly earnings rose 1.2% from SAR 126.25 million in the previous quarter.

Total shareholders’ equity, after minority interest, reached SAR 1.77 billion as of June 30, 2024, down from SAR 1.76 billion a year earlier.

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