• Completed acquisition of Mlekoma Group, a Polish milk powder producer
  • Net Sales -2.8% below same quarter last year
  • Net Sales year to date +8% above last year, assisted by Mlekoma’s acquistion 

Jeddah: Lower international commodity prices combined with favourable sales growth across its various categories has enabled, Saudia Dairy and Foodstuff Company (SADAFCO) to announce a net profit of SAR 54 million during the three-month period ending on 30 September 2018. This was SAR 4 million higher than the achievement last quarter, on the back of 4.6% higher sales.

“Despite the current challenging market environment, SADAFCO continues to strengthen its premium branded position and realise its financial goals,” said Wout Matthijs, CEO of SADAFCO. “We are also focused on investing in expanding our future product portfolio, which will further contribute to our success in the years to come.”

In the half year, April to September 2018, net sales were down -6% excluding Melkoma, resulting from multiple headwinds (expat departure, higher labour costs, higher cost of living and lower consumer confidence).   In addition, the domestic milk category has a glut of supply driving irrational price discounting by our customers, which we have sought to contend with.  

During the last quarter, SADAFCO acquired 76% of the Polish dairy powder producer Mlekoma Group for a transaction valued at SAR 120 million. The acquisition will contribute towards delivery of powdered raw materials and blended semi-finished goods mixes for our use in the future.  

Strong working capital ratios and free cash of SAR 484 million with zero debt, following our acquisition, meant SADAFCO will continue to enhance shareholders value.   Shareholder equity for the period was valued at SAR 1.338 billion, a 1% increase in comparison to the same period last year (SAR 1.321 billion).

Furthermore, SADAFCO is expected to launch the new Jeddah Central Warehouse by the end of 2018. The project, worth SAR 145 million, is expected to deliver future cost savings and improved effectiveness in the company’s supply chain.

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.

-Ends-

About Saudia Dairy & Foodstuff Company (SADAFCO): 

SADAFCO is a publicly-listed company which has been producing high-quality dairy and foodstuff products under the Saudia brand name since 1977, a year after the company was formed. Saudia enjoys being one of the market leaders in the Kingdom of Saudi Arabia in the production of tomato paste, ice cream and milk.

Based in Jeddah, SADAFCO operates sales and distribution depots in 24 locations across the Kingdom of Saudi Arabia, Bahrain, Jordan and Kuwait. Saudia products are also exported to several countries in the MENA region.

SADAFCO currently operates three ISO22000:2005-certified factories in Saudi Arabia, two in Jeddah and one in Dammam. All three factories also have ISO14001 and OHSAS18001 accreditation.

For more information about SADAFCO, please visit www.sadafco.com 

© Press Release 2018

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