Arab Press

بالشعب و للشعب
Thursday, Mar 28, 2024

SADAFCO net profit climbs 43.5% as sales surge

SADAFCO net profit climbs 43.5% as sales surge

Saudia Dairy and Foodstuff Co. saw a 43.5 percent surge in net profit during the final three months of 2022 on the back of rising sales, the company has announced.
SADAFCO recorded a net profit after tax of SR78.3 million ($20.88 million) in the three months to the end of December, compared to SR54.6 million in the same period in 2021.

Sales increased by 25.8 percent compared to a year prior to reach SR654 million, according to a recent announcement on the Saudi Stock Exchange known as Tadawul.

This incline was “achieved through continuous focus on sales efficiency, route optimization and channel profitability,” stated the release on Tadawul, adding: “The quarter witnessed a normalization in sales and profitability of Mlekoma as commodity prices declined in line with the global trend.”

Polish dairy producer Mlekoma was acquired by SADAFCO through its subsidiary company SADAFCO Poland in 2018.

The Mlekoma group owns two plants specialized in the production of powdered, condensed and fluid products as well as whole milk, cream, butter milk and fat filled powders.

Despite a significant drop in Mlekoma’s profitability compared to a year earlier, the gross margin remained stable at 30 percent versus 30.8 percent in the same quarter last year.

The financial statements of SADAFCO indicated a healthy cash flow, with a strong cash position of SR634 million, including short term investments of SR258 million.

The company’s finance income significantly rose by SR2.9 million as a result of higher returns on investments in Murabaha deposits.

SADAFCO attributed its positive finance cost to strengthening of Polish Zloty versus the Saudi riyal compared to the previous quarter.

“We remain vigilant in managing the inflationary pressures in the global markets,” noted the company statement.

It added: “Our financial position has enabled us to take advantage of the deflationary trend in the commodity market to manage higher profitability in the coming quarters.”

Jeddah-based SADAFCO operates sales and distribution depots in 24 locations across Saudi Arabia, Bahrain, Qatar, Jordan, and Kuwait. Its products are also exported to several countries in the MENA region.

The uplifting performance of SADAFCO stands in line with Saudi Arabia’s food industry, as well as that of the region.

The Kingdom’s food and beverage sector increased 6.3 percent in the first half of 2022, according to the Saudi Arabia’s Small and Medium Enterprises Authority, also known as Monsha’at.

In addition, there has been a growth in the Gulf Cooperation Council region’s food market “due to the rising population, increasing awareness of healthy eating habits and increasing food consumption,” according to a Koncept Analytics report published in September 2022.

“In 2021, the dominant share of the market was held by Saudi Arabia,” said the report, also noting that as the Kingdom has a population with significant levels of wealth and high disposable incomes, its consumption food industry would continue to grow.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×