SADAFCO’s net profit up 83.4% to SR261 million

01/05/2016 05:13 AST

Low international commodity prices combined with favorable sales growth across its various dairy and foodstuff categories has enabled the Saudia Dairy and Foodstuff Company (SADAFCO) to once again register an increase in its profits for the 12 months ending March 31.

According to the recently announced Q4 results, SADAFCO achieved a net profit of SR80 million, an increase of 172 percent compared to the same quarter last year (SR29 million). The increase in net profit has been attributed to favorable commodity prices and a growth in sales of 9.7 percent compared to the same period last year.

“The confidence and trust of our valued consumers, customers and shareholders in our ability to produce dairy and foodstuff products of the highest quality is what continues to sustain SADAFCO’s profitability,” said Wout Matthijs, CEO, SADAFCO.

“Despite the competitive market conditions, we were able to leverage the strength of our brands and capitalize on favorable international commodity prices to realize our financial goals. We are also focused on expanding our product portfolio that is at the core of our long-term business strategy which will further contribute to our organization’s success in the years to come.”

The recent results saw SADAFCO’s operating profit in Q4 2015-2016 soar to SR83 million, a 145 percent increase in comparison to the similar quarter for previous year (SR 34 million). Furthermore, the total gross profit for Q4 2015-2016 stood at SR709 million, an increase of 28.3 percent compared to the same period last year (SR552 million).

“Having achieved a high-end single digit growth throughout the fiscal year, we have solidified our position as the market leader in the tomato paste and ice cream categories and we have strengthened our No. 2 position in drinking milk. Our goal now is to build on the momentum from the previous year and continue to boost SADAFCO’s success and financial performance by investing in our brands while focusing on our core values and strengths,” added Wout. EBITDA has improved to SR 358 million, an increase of 59 percent compared to the same period last year (SR 225 million) due to the investment in capital expenditure.

Strong working capital ratios and a cash balance of SR 246 million with zero leveraging have contributed to enhanced shareholder value, with earnings per share (EPS) for Q4 2015-2016 almost doubled to SR8.03 compared to SR4.35 for the same period last year.

Arab News