Saudia Dairy and Foodstuff Co. announces its Interim Financial Results for the Period Ending on 2019-10-21 ( Six Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 521,078476,6249.326485,2327.387
Gross Profit (Loss) 176,776145,83021.22156,47312.975
Operational Profit (Loss) 66,76455,21020.92758,93913.276
Net Profit (Loss) after Zakat and Tax 65,12853,83120.98657,90612.471
Total Comprehensive Income 65,09753,51121.65158,03412.17
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 1,006,310886,79513.477
Gross Profit (Loss) 333,249279,35219.293
Operational Profit (Loss) 125,703106,01118.575
Net Profit (Loss) after Zakat and Tax 123,034103,85918.462
Total Comprehensive Income 123,131104,35317.994
Total Share Holders Equity (after Deducting Minority Equity) 1,397,9821,337,6324.511
Profit (Loss) per Share 3.863.21
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListExplanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to Net profit in the quarter was SAR 65.1Mln, which was SAR 11.3Mln (21%) above the same quarter last year, mainly driven by higher sales and favourable product and channel mix.

Net sales in the quarter were SAR 521.1Mln, +9.3% (SAR 44.5Mln) above those achieved in the same quarter last year. Milk sales were +11% higher, primarily due to lower intensity of milk category discounting . Ice cream sales were up +16%, and tomato paste sales +25% above last year (lapping low post Ramadan Q2 last year). Mlekoma sales were below last year but margins were better.

SADAFCO’s Gross Margins for the quarter were 33.9%, +3.3% above last year. A number of factors contributed towards this including stronger sales of ice creams (seasonality), lower discounting pressure on milk; all more than offsetting a moderate increase in raw materials price pressure.

Selling and distribution costs were +SAR 12.7Mln above last year driven by higher A&P investment securing our premium position. General and administrative expenses increased by SAR 6mln, mainly a result of higher expat levy costs.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to Net profit in this quarter was SAR 7.2Mln (+12.5%) higher than the previous quarter. Net sales were +7.4% (+SAR 35.8Mln) higher and gross margins were 1.7% in this quarter due favourable product mix.
Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to Net profit YTD is SAR 123.0Mln which is SAR 19.2Mln (18.5%) above last years comparative. Stronger Q1 results driven by an additional quarter of Mlekoma sales this year and lower discounting. Selling and distribution costs YTD are higher due to higher volumes and increased A&P investment in our brands in Q1 and Q2.
Basis of the External Auditor's Opinion Unmodified opinion
Additional Information Our performance in Q2 represents a continuation of the encouraging trend seen in the last few quarters of higher year on year sales and profit delivery. Sales of all three key pillar categories are higher vs. last year and gross margin mix has been favourable.

The results of our sustained investment in order to strengthen our premium position in the forefront of our customer’s minds. In particular, we 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.

Our Jeddah Central Warehouse is fully up and running and our use of 3rd party warehouse facilities has been significantly reduced. Ultimately, once utilization of JCW increases, cost benefits will increase, both from a P&L and cash investment (lower working capital and capex) perspective.

The company did not re-purchase any of its shares during the quarter. The share-price has increased by approximately 45% since we first announced the share-buyback program.

Our cash balance remains healthy at SAR 605Mln.

Attached Documents  

The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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