Jeddah – :
Saudia Dairy and Foodstuff Company (SADAFCO) has reported year-on-year growth in both sales and net profit for the second quarter (Q2) of 2020.
Sales for the three-month period, which ended on September 30, grew 2.7% year on year to reach SAR 535 million. Net profit increased 7.9% over Q2 2019 to reach SAR 70.2 million.
Growth was seen across product categories, with tomato paste sales leading the way with 15% annual growth. SADAFCO maintains its strong positions in key product categories, with a 50.3% share of Saudi Arabia’s tomato paste market, 28.2% in drinking milk and 25.7% in ice cream.
“In the second quarter of 2020, SADAFCO continued to perform well in terms of both sales and profitability,” said Wout Matthijs, Chief Executive Officer, SADAFCO. “The high level of net profit and the continued growth in sales reflects strong customer loyalty to our brand and the ingenuity and creativity of our valued workforce, as well as our retail partners. While the onset of the pandemic has presented us with many challenges, we have worked tirelessly to maintain high levels of production and customer service throughout.”
Shareholder equity for the period was valued at SAR 1.51 billion, an 8.5 % increase on the same period last year (SAR 1.39 billion). The company’s cash balance also remains healthy, at SAR 610 million, compared with SAR 605 million a year ago.
Construction of SADAFCO’s new ice cream production facility continued in the second quarter and work remains on track for completion in the middle of next year. Once operational, the plant will support SADAFCO’s strategy to increase market share in a key product segment.
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.