SADAFCO sustains growth; net profit grows 5.3% in Q1

01/08/2017 05:32 AST

In spite of the overall market conditions, Saudia Dairy and Foodstuff Company (SADAFCO) has managed to deliver healthy net margins in Q1 2017 consistent with the previous quarter (Q4 2016) and the same period last year (Q1 2016).

Despite the increase in material input costs SADAFCO achieved a net profit of SR77 million in Q1 2017, which represents an increase of 5.3% as compared to the previous quarter (Q4 2016). Total sales recorded SAR 452.8 million during the first quarter, an increase of 1.2% from Q4 2016, but less by 4.8% from the same period last year (Q1 2016).

"It is encouraging to achieve consistent profitability, irrespective of the market conditions," said Wout Matthijs, Chief Executive Officer, SADAFCO. "Sales have slightly declined due to the holiday season and the slowdown in the consumption pattern; however, we are confident that our key products will continue to strengthen their market share."

"Despite experiencing challenging market conditions, we are maintaining strong working capital ratios, healthy cash balance of SAR 505 million with zero leveraging and were able to significantly increase the shareholder equity YOY by 15.5%, (SR1.208 billion compared to SR1.046 billion from the same period last year (Q1 2016)."

"Our conscious efforts towards cost and credit control, and delivery of efficient customer service will enable us to produce consistent results in the upcoming quarters," added Wout. "We continue to be confident in the company's long-term growth prospects and are aware that we still have a lot of opportunity to improve our operations and deliver the outstanding experience expected by our customers."

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.

Saudi Gazette