Saudia Dairy and Foodstuff second quarter profit rises 21 pct on higher sales

Saudia Dairy and Foodstuff Co posted a 20.99 per cent increase in net profit for the three months ending September 30 to 65.13 million riyals ($17.37 million), the company said in an exchange filing on Monday.

SADAFCO’s second quarter growth (the company starts its financial year in April) was mainly driven by higher sales and “a favourable product and channel mix”, it said.

Revenue reached 521.08 million riyals, up 9.33 per cent from the same period last year.

Milk sales rose 11 per cent primarily due to lower discounting, ice-cream sales increased by 16 per cent, and the company sold 25 per cent more of tomato paste.

“[W]e have seen an improvement in our ice-cream market share, partly the result of the addition this summer of several thousand new freezers in outlets across KSA and other GCC countries to further expand our reach,” SADAFCO said.

Saudi Arabia accounted for 87.63 per cent, or 456.61 million riyals, of its second quarter revenue, followed by 7.44 per cent from Poland, 2.73 per cent from other GCC countries, and 2.2 per cent from all other markets.

“Our Jeddah Central Warehouse is fully up and running and our use of 3rd party warehouse facilities has been significantly reduced,” said the company.

SADAFCO markets its products under brand names Saudia, Crispy, Baboo, and Majestique.

The Jeddah-based company is 40.11 per cent owned by Qurain Petrochemical and 11.68 per cent controlled by Al Samh Trading Co.

($1 = 3.75 Saudi riyals)

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