Saudia Dairy and Foodstuff Company (Sadafco) has approved a total dividend distribution of SR195 million ($52 million) for the 2017-18 financial year, at its extraordinary general meeting (EGM) held in Jeddah, Saudi Arabia.

The board of directors approved the audit report for the financial year ended in March 2018 and recommended to distribute dividends amounting to SR65 million ($17.33 million) at SR2 per share, which is equivalent to 20 per cent of the nominal share value and company’s capital for the second half of financial year ending March 31, 2018.

The amount is payable to Tadawul shareholders registered by the end of trading of the meeting date.

The company's annual general meeting was deemed as being extraordinary as one of the items on the agenda was approval of several changes in company law which require changes to Sadafco’s bylaws, said a statement from the company.
 
In spite of the current challenging market environment, Sadafco was able to strengthen its premium branded position and record a net profit of SR260 million ($69.33 million), it said.

The total dividend distributed of SR195 million ($52 million) reflected the strong financial position of the company and continuation of steady returns to shareholders.

Moreover, the company secured free cash flow of SR559 million ($149.06 million) with zero leveraging indicate strong positioning for growth.
 
Wout Matthijs, chief executive officer, Sadafco, said: “The combination of the reforms taking place in the Saudi economy and our internal efforts to optimise our profitability has led to the company registering strong results over the past year.”

“We continued our journey along a transformative path, making significant changes in the way we operate, while acquiring and developing new capabilities that are critical to realise our long-term vision,” he added.
 
Other resolutions passed during the EGM included the approval of the updated policy for the audit, remuneration and nomination committees, and the appointment of Price Waterhouse Coopers (PWC) as the external auditors to perform quarterly and annual reviews for the year ending March 31, 2019, it stated. – TradeArabia News Service