Saudia Dairy and Foodstuff Company (Sadafco), a leading dairy and foodstuff producer, yesterday (May 28) held an annual general meeting and approved the distribution of dividends amounting to SR130 million ($34.66 million) at SR4.00 ($1.04) per share, the equivalent of 40 per cent of capital.

The timing of the distribution of dividends will be announced later, said a statement.

In spite of the challenges of declining consumer spending and price competition, Sadafco experienced an increase in its profits for the year ended on March 31, it added.

According to the results, a net profit of SR302 million ($80.52 million) was achieved, reflecting a growth of 15.7 per cent over the previous year, as the company stayed true to the strategy of opting for branded value sales over top-line push, said a statement.

Wout Matthijs, chief executive officer, Sadafco, said: “We are happy with the year’s results in spite of the competitive market conditions where consumers have been exercising restraint and discipline when spending.”

“While sales declined by 6.3 per cent to SR1.858 billion ($495.4 million), the company delivered an increased net operating income of SR311 million ($82.9 million), up 12.7 per cent on last year,” he said.

Moreover, Sadafco managed to boost its market positions in tomato paste, ice cream and total plain milk, illustrating the resilience and strength of the Saudia brand that is trusted and favoured by Saudis for the past 40 years.

Other resolutions passed last evening saw the approval of the Annual Report, Auditors Report and Financial Results for the year ended 31 March 2017.

Price Waterhouse Coopers (PWC) was appointed auditors for the year ending March 31, 2018.

The election of board members for the next three-year term commencing on April 1, 2018, was concluded.  

The board members elected are Sheikh Hamad Sabah Al Ahmad, Faisal Hamad Mubarak Al-Ayyar, Saeed Ahmed Saeed Basamh, Ahmed Mohamed Hamed Al-Marzouki, Mussad Abdullah Abdul Aziz Al Nassar, Suliman Saud Jarallah Al-Jarallah and Abdullah Yaqoob Bishara.

The meeting also confirmed the audit committee for the same period to be comprised of Faisal Al Ayyar, Tariq Mohamed Abdul Salam and Ahmed Al Marzouki, it stated. – TradeArabia News Service