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SADAFCO reports significant third quarter financial results of 43.5%

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Jeddah – Asdaf News

SADAFCO reported a significantly higher net profit of (43.5%) for the quarter compared to the same quarter last year. The company reported a total profit of SAR 78.3 million for the quarter, representing a 43% increase over the previous year’s results of SAR 54.6 million. The increase was attributed to the company’s increased emphasis on sales efficiency, route optimization, and channel profitability. Overheads were effectively managed and spent primarily on advertising and sales activities (in preparation for Ramadan sales).

Patrick Stillhart, CEO, SADAFCO said: “Our progressively strong financial results reflect the strength of the Saudia brand and the prudent decision making by the Board and the management. Our market shares remain robust with very positive trending lines, further strengthening our position in the respective categories. Dec shares were at: UHT Milk 64.4%, Tomato Paste 54.7% and Ice cream 32.0% (highest share ever). Moreover, we had strong double-digit volume growth in Q3, in particular in the month of December (+16%). We continue to delight our consumers through new offerings especially in the ice cream and dairy categories.

ESG continues with initiatives relating to reduction of electricity through solar panels, water saving and recycling of water and packaging materials. “

SADAFCO also announced strong financial results with a net profit of SAR 220.7 million for the nine months that ended on December 31, 2022. The figures indicate a 50.9% increase in earnings from SAR 146.3 million over the prior year. Across all channels and categories, sales increased by 437 million in SAR terms, or 28.4%. Gross margin grew from 30.6% to 31.4% due to more careful purchasing, efficient manufacturing, and an emphasis on sustainable growth.

Work on the new Makkah facility, which is expected to be operational in the following fiscal year, is continuing as SADAFCO expands its capacities to meet future demands. With a cash balance of SAR 634 million, SADAFCO’s financial position is quite robust. A dividend of SAR 3 per share was issued as an interim dividend in January 2023.

 

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