The latest SADAFCO Q3 results indicate continued market leadership and volume growth across the food producer’s core categories in Saudi Arabia. Saudia Dairy and Foodstuff Company maintained sales stability across key dairy segments during the first nine months of 2026. This performance unfolded despite shifting cost structures and broader regional commercial pressures influencing the regional economy.
Financial Overview and SADAFCO Q3 Results
According to the official SADAFCO Q3 results, consolidated gross profit margin improved to 30.6% during the third quarter compared to 28.3% a year earlier. This margin gain was supported by an updated product mix at Polish subsidiary Mlekoma, which shifted production toward higher-value offerings. In addition, administrative cost controls delivered a SAR 7.2 million reduction in selling and distribution expenses.
Third-quarter revenue reached SAR 678.5 million, marking a 14.2% decrease compared to the same period in 2025. This contraction was primarily driven by lower revenue from Mlekoma due to softer market pricing in select product categories. Meanwhile, net profit attributable to shareholders stood at SAR 66.7 million, down 63.9% from SAR 184.5 million in the prior-year quarter. That comparative decrease reflects a one-off gain of SAR 107.4 million from a real estate sale recorded in the previous year, alongside elevated logistics and raw material expenses.
Core Category Market Share and Consumer Trends
SADAFCO preserved its dominant retail position across Saudi Arabia based on Nielsen data for the moving annual total ending September 2026. The producer held a 60.2% value share in long-life plain milk, 52.1% in tomato paste, and 30.8% in ice cream. Furthermore, the company increased its share in long-life flavoured milk to 24.8%.
Volume gains were partly driven by local consumer preferences shifting from fresh dairy products toward long-life options, a movement supporting both traditional grocery networks and modern commercial channels aligned with consumer wellness and health-tech standards. Operating across 24 domestic distribution hubs requires extensive fleet management, where commercial automotive transport plays a direct role in preserving shelf availability nationwide.
Cost Discipline and Operational Margins
Net profit margin for the third quarter remained at 9.8%, showing operational discipline despite input price increases. The company maintained a solid financial base through disciplined working capital controls, holding a cash balance of SAR 502 million. Sales volumes across the core portfolio exceeded the figures recorded during the corresponding period last year.
“Continued demand for our core products and our leading market positions provide a solid foundation for the business. Volume growth across our core product portfolio over the first nine months demonstrates our resilience amid heightened competition and regional tensions. Despite higher input and logistics costs, we maintained profitability and remain focused on strengthening execution and improving efficiency.”
Patrick Stillhart, Chief Executive Officer of SADAFCO
Nine-Month Performance and Future Outlook
Reviewing the broader SADAFCO Q3 results, the company recorded a consolidated revenue of SAR 2.17 billion for the first nine months of 2026. Consolidated net profit attributable to shareholders reached SAR 236.9 million, delivering an overall net profit margin of 10.9%.
Excluding Mlekoma, nine-month revenue rose 0.55% to SAR 1.96 billion. Looking ahead, the company plans to continue direct capital allocation into its established consumer brands, using its cash reserves to maintain operational efficiency and long-term shareholder value across the GCC and export markets.
