Saudia Dairy and Foodstuff Co. announces its Interim Financial results for the Period Ending on 2025-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 785,355 | 722,177 | 8.748 | 778,582 | 0.869 |
| Gross Profit (Loss) | 271,410 | 268,212 | 1.192 | 279,864 | -3.02 |
| Operational Profit (Loss) | 117,806 | 131,387 | -10.336 | 123,275 | -4.436 |
| Net profit (Loss) | 117,664 | 127,787 | -7.921 | 126,112 | -6.698 |
| Total Comprehensive Income | 122,780 | 130,349 | -5.806 | 130,521 | -5.93 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 1,563,937 | 1,440,057 | 8.602 |
| Gross Profit (Loss) | 551,274 | 524,705 | 5.063 |
| Operational Profit (Loss) | 241,081 | 252,484 | -4.516 |
| Net profit (Loss) | 243,776 | 253,998 | -4.024 |
| Total Comprehensive Income | 253,301 | 254,516 | -0.477 |
| Total Shareholders Equity (after Deducting Minority Equity) | 1,772,553 | 1,772,351 | 0.011 |
| Profit (Loss) per Share | 7.618 | 7.939 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Sales of SAR 785 Mln versus SAR 722 Mln for the same quarter last year represent an increase of 8.75%. This increase reflects our focus on maintaining our dominant market share, despite increased competition and investments in new channels. Current shares are: UHT milk 57.4%, Tomato Paste 53.6% and Ice cream 30.4%. This has been achieved through volume growth.
We registered growth in the established retail channels and also in new channels: Export 19.7%, Out of home 16.9% and E-commerce 26.5%.
Mlekoma registered an impressive 82.6% sales growth compared to last year. Efforts to make Mlekoma operations value accretive are through various initiatives progressing. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Net profit of SAR 117.7 Mln is lower than in the same quarter last year of SAR 127.8 Mln. a 7.92% decline explained as follows:
• Gross margin (excluding Mlekoma’s results) is 40.8%, same as last year, notwithstanding the following challenges: a) the margin dilutive trends prevalent in the market e.g. a) discounting. b) higher key raw material costs and general inflationary factors e.g. diesel prices etc. The gross margin (including Mlekoma’s results) is 34.6% vs 37.1% last year. • Selling & distribution expenses are 16.0% of net sales vs 15.3% last year. In absolute terms the increase of SAR 15.2 Mln in S&D expenses is mainly attributable to the discretionary / controllable A&P spend incurred for strategic brand building, supporting a record 16 new product launches and investment in Out-of-home (OOH) channel. • General & administrative expenses at 3.9% of sales are at the same level as last year despite inflationary factors. • Net finance income decreased by SAR 1.4 Mln. Driven by higher dividend payout and lower Murabaha rates. • Zakat expense is based on Zakat base. • Net profit margin is a healthy 15% vs 17.7%, last year as explained above. Net profit margin without Mlekoma’s results is 18.0%. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | SADAFCO’S performance comparing to last quarter is analyzed as follows:
• Sales are higher by SAR 6.8 Mln. representing a 0.87% increase over last quarter, driven by growth across all categories, channels and geographies. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | • Net profit of SAR 117.7 Mln is lower by 6.7% compared to last quarter due to:
• A healthy gross margin (excluding Mlekoma) of 40.8 % vs 42.2% last quarter was achieved despite increase in raw material costs, partially offset by various cost control initiatives. Gross Margin (including Mlekoma) is 34.6% vs 35.9%. • S&D and G&A costs as a percentage of net sales have remained at the same level as last quarter despite inflationary trends. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | Sales of SAR 1.6 Bln during the current period represent an increase of 8.6% versus last year, attributable to: a) Expansion in OOH, e-commerce and export; b) growth and entry into new export markets; c) Poland operations delivered exponential growth. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Net profit of SAR 243.8 Mln is lower versus same period last year of SAR 254.0 Mln a 4.0% decline because of:
• Gross margin 35.2% vs 36.4% last year, a marginal decline despite higher key raw material costs and inflationary trends. The gross margin (excluding Mlekoma’s results) is 41.5% vs 40.3% last year. • Selling & distribution expenses are 16.3% of net sales vs 15.2% last year. In absolute terms the increase of SAR 36.7 Mln in S&D expenses has been driven mainly by the strategic, yet discretionary A&P spend expansion drive into aforementioned channels. • General & administrative expenses at 3.9% of sales are at the same level as last year because of control measures. • Net finance income decreased by SAR 5.2 Mln due to higher dividends and lower Murabaha rates. • Zakat expense is based on Zakat base. • The Net profit margin is 15.6% vs 17.6% last year as explained above. Net margin excluding Mlekoma’s results is 18.6%. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | None |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform to the current period’s presentation. |
| Additional Information | • SADAFCO is pleased to report solid performance for the second quarter of 2025 a) revenue growth across most product categories, channels and geographies. b) achieving a healthy gross margin of 34.6%. c) stellar net margin of 15% d) discretionary investment through A&P for brand building, whilst controlling other overhead costs.
• The balance sheet remains strong through sustained focus on each working capital element, reflected in a high cash balance of SAR 672.4 Mln. • Our initiative to move to the distribution model in GCC has reduced overheads. • Our innovative pipeline continues to deliver new offerings. 16 new products were launched in various portfolios. • Poland’s revenues continue to improve compared to last year. • Sadafco will continue to invest in capex and A&P to ensure future growth. • Shareholders’ equity is at a healthy position of SAR 1.773 Bln vs SAR 1.807 Bln. • The earnings per share is computed as follows: Profit attributable to owners of SADAFCO SAR 243,776,000 Total shares 32,500,000 Treasury shares held by the Company 500,250 Total shares outstanding 31,999,750. EPS 7.62 |
Comments