{"id":25783,"date":"2021-06-17T17:07:05","date_gmt":"2021-06-17T14:07:05","guid":{"rendered":"https:\/\/saudishopper.com.sa\/en\/?p=25783"},"modified":"2026-03-27T22:39:39","modified_gmt":"2026-03-27T19:39:39","slug":"sadafco-announces-strong-sales-and-solid-net-profit-performance-for-financial-year-2020-21","status":"publish","type":"post","link":"https:\/\/saudishopper.com.sa\/en\/sadafco-announces-strong-sales-and-solid-net-profit-performance-for-financial-year-2020-21\/","title":{"rendered":"SADAFCO Announces Strong Sales and Solid Net Profit Performance for Financial Year 2020-21"},"content":{"rendered":"\n<ul class=\"wp-block-list\"><li><strong><em>Revenue continues to increase in challenging market conditions<\/em><\/strong><\/li><li><strong><em>Net profit margin remains above 12%<\/em><\/strong><\/li><li><strong><em>All key sites functioned throughout the year ensuring employee safety through Covid protocols<\/em><\/strong><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Jeddah, Saudi Arabia: 16 June 2021<\/strong>&nbsp;\u2013 Saudia Dairy and Foodstuff Company (SADAFCO) announced year-on-year growth in revenue and operating profit for the financial year (FY) 2020-21. Annual revenue reached SAR2.1 Billion, a year-on-year, (YoY)increase of 2.4%, while operating profit grew 3.3%, reaching SAR 285 Million.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Net profit of SAR 261 Million, is healthy at 12.4% of sales, a decline of 1.6% YoY, due to exceptional Coivd-19 and donation costs.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIn what was a challenging year, SADAFCO increased sales and operating profit, while delivering a healthy net profit margin of 12.4%,\u201d said Wout Matthijs, Chief Executive Officer. \u201cApart from our reported Net Profit, we absorbed SAR 24 million in one-off costs as we navigated the impact of the pandemic through enhanced safety implementations and safeguarding employee health.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Matthijis added \u201cThis robust performance shows our resilience and level of passion to deliver under the most challenging of circumstances.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The increase in overall revenue was driven by double digit sales increases in SADAFCO\u2019s ice cream and tomato paste categories, while the sales of milk increased at single digit levels.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company\u2019s gross margin remained steady at 33%, while sales and distribution costs as a percentage of sales&nbsp;also remained stable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">General and administrative costs as a percentage of sales increased to 5.2% from 4.9%, attributable to a one-off donation of SAR 8.7 million in cash and kind.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Total shareholder equity increased 5.25%, to&nbsp;reach 1.53 Billion. The board approved&nbsp;an increase in the interim dividend that was paid in January from SAR 2.5 per share to SAR 3.00 per share.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the pandemic, construction works on&nbsp;SADAFCO\u2019s new ice cream production facility continued at&nbsp;pace throughout FY 2020-21. Production trials are due to begin in July and once the facility is fully operational, SADAFCO will be well placed to strengthen and&nbsp;increase market share in a fast-growing market segment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This year SADAFCO has celebrated the graduation of trainees in its 4th cycle of the training program in partnership with the Higher Institute for Water and Power Technologies (HIWPT). SADAFCO celebrated the accomplishment of the&nbsp;first production line fully&nbsp;operated by female employees in the ice cream factory in Jeddah.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">SADAFCO has achieved several milestones in sustainable operation through its \u201cTowards Sustainability\u201d initiative, launched&nbsp;in 2020 with the implementation of GreenBox, Smart Electronic Fueling System and Solar Panels. As a result, for the period of Jan 2020 up to Oct 2020 Jeddah Ice Cream Factory, Jeddah Factory and Dammam Factory collectively sent 2180 Tons of waste for recycling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, Jeddah Milk Factory\u2019s water consumption was reduced from 1.55 litre per pack in 2017 to 1.38 litre per pack in 2020. The solar panel installation in the Riyadh regional distribution warehouse generated&nbsp;total energy of 316 MWh in 2020 which saved SAR 95K.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The successful partnership between SADAFCO and Tera Pack resulted in a 20% reduction in operational wastage over a two-year period.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Revenue continues to increase in challenging market conditions Net profit margin remains above 12% All key sites functioned throughout the year ensuring employee safety through Covid protocols Jeddah, Saudi Arabia: 16 June 2021&nbsp;\u2013 Saudia Dairy and Foodstuff Company (SADAFCO) announced year-on-year growth in revenue and operating profit for the financial year (FY) 2020-21. Annual revenue [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":25784,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_meta-robots-noindex":"","_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","_pr_autopilot_social_copy":"","_yoast_wpseo_opengraph_title":"","_yoast_wpseo_opengraph_description":"","_yoast_wpseo_opengraph_image":"","_yoast_wpseo_opengraph_image_id":0,"_yoast_wpseo_twitter_title":"","_yoast_wpseo_twitter_description":"","_yoast_wpseo_twitter_image":"","_yoast_wpseo_twitter_image_id":0,"_yoast_wpseo_primary_category":24,"_extra_hide_author_box":"","_extra_featured_post":"","_partner_post_id":0,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-25783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site 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