Despite the decline in consumer spending and aggressive price strategies of competition, Saudia Dairy and Foodstuff Company (Sadafco) has reported a net profit of SR260 million ($69.32 million) during the 12-month period ending on March 31, 2018.

Strong working capital ratios and a free cash flow of SR559 million ($149.05 million) with zero leveraging after a dividend payout of 50 per cent have contributed to enhanced shareholder value, said a statement from the company.  

Shareholders equity for the period was valued at SR1.321 billion ($352.23 million), a 5 per cent increase in comparison to the same period last year SR1.261 billion ($336.28 million).

Wout Matthijs, chief executive officer, Sadafco, said: “We continue to strengthen our premium branded position despite the current challenging market environment.”

Furthermore, earnings-per-share (EPS) were at SR 8.1 ($2.16), representing a return of 15.4 per cent of net sales.

Additionally, the cost control initiatives by the company resulted in a 3.6 per cent reduction in expenses to offset the overall decline in revenues.

Matthijs said: “Whilst we remain alert and agile in light of the new realities we face, we continue to be committed to delivering profitable sales investing behind our brands, and delivering a respectable return on our sales.”

“We were able to secure healthy margins and, despite the lower sales value, we achieved a modest increase in volume, which resulted in continuous growth in market share, especially in our key categories of milk, tomato paste and ice cream,” he said.

“We do not project an imminent balancing in domestic fresh milk supply versus demand and are working on enhancing our existing broad non- UHT milk range, as well as adding to our overall consumer proposition,” he added.

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. – TradeArabia News Service