Jeddah – :
(SADAFCO) has reported outstanding results for the first quarter (Q1) of 2020.
Sales for the period, which ended on June 30, grew 16.5% year on year to reach SAR 566 million. Net profit increased 22% over Q1 2019 to reach SAR 70.5 million
SADAFCO attributed the growth in both sales and net profit to an increase in consumption of milk and tomato paste as residents and citizens spent more time at home during the March-June period.
“This year has been unique in terms of the challenges faced and the impact of the COVID-19 pandemic. Despite the current challenging market environment, SADAFCO continues to strengthen its reputation for premium products, recording sales growth of 27% and 31% across the milk and tomato paste categories,” said Wout Matthijs, Chief Executive Officer, SADAFCO. “We are focused on diversifying our product portfolio as part of our long-term business strategy, as we continue to support food security and drive local production and self-sufficiency across the Kingdom.”
SADAFCO’s continued growth and profitability contributed to enhanced shareholder value. Shareholder equity for the period was valued at SAR 1.47 billion, a 10% increase in comparison to the same period last year (SAR 1.33 billion).
During the quarter, SADAFCO commenced construction of a new ice cream production plant to cater to growing market demand. Completion of the facility is scheduled for next year and will support SADAFCO’s strategy to increase market share by expanding its product range.
As part of its commitment to support the communities it operates in, SADAFCO contributed SAR 10 million during the quarter to the Ministry of Health’s COVID-19 Endowment Fund and a total of SAR 2.5 million to organisations in Bahrain, Jordan and Kuwait. The contributions are part of SADAFCO’s dedicated efforts to help ease the impact of the pandemic and support initiatives dedicated to combating COVID-19.
Established in 1976, SADAFCO is a leader in dairy and foodstuff manufacturing, importing, distributing and marketing in Saudi Arabia and has established a strong reputation and loyal following in the food and beverage industry across the GCC region.