“Sadafco” profits rose 46% to 78.5 million riyals in the fourth quarter
The Saudi Dairy and Food Products Company “Sadafco” announced that its profits increased to 218.3 million riyals at the end of the first nine months ending in December 2022, an increase of 50%, compared to profits of 145.9 million riyals achieved during the same period in 2021, while the profits of the fourth quarter amounted to 78.5 million. SAR, an increase of 46%.
The company stated in a statement on “Tadawul Saudi Arabia”, today, Wednesday, that the reason for the increase in profits at the end of the nine months is due to the increase in sales (437 million riyals) by 28.4%, for all items and sales channels.
Gross profit margin increased to 31.4% compared to 30.6% as a result of increased focus on prudent purchasing strategies, efficient manufacturing processes and focus on profitable growth.
Selling and distribution expenses decreased to 12.8% compared to 14.7% for the year 2021 as a percentage of sales, while they increased as a value by 12%.
General and administrative expenses decreased to 4.5% compared to 5.5% as a percentage of sales.
In addition, the company indicated that the reason for the increase in profits during the fourth quarter of the year 2022 compared to the same quarter of the year 2021 is due to the increase in sales by 25.8%, driven by the continuous focus on the efficiency of sales operations and improving the paths and profitability of sales channels, as this quarter witnessed the return of sales and profitability of a group Melcoma to normal, as a result of lower prices of basic products in line with the global trend.
Gross margin was maintained at 30% compared to 30.8% for the previous year despite a significant decline in Mlekoma’s profitability, compared to the same quarter of 2021.
General and administrative expenses decreased as a percentage of sales by 4.2%, compared to 5.3% in 2021, as a result of cost-rationing initiatives.
Finance revenues increased significantly by 2.9 million riyals as a result of higher returns on investment in Murabaha deposits.
Term deposits (more than 3 months) are also placed to benefit from higher returns.
