SADAFCO Profits increase to SR56 mln during Q1, by 48%

The net profit after zakat and tax for the Saudi Dairy and Food Products Company “SADAFCO” grew to SR56 million during the first quarter, compared to SR38 million during the same quarter of the previous year by 48%.
This came after announcing on Sunday the preliminary financial results for the period ending on 30.06.2022 (three months).
The operational profit amounted to SR90 million during the first quarter, compared to SR44 million during the same quarter of the previous year, a growth of 104%.
The gross profit amounted to SR202 million during the first quarter, compared to SR150 million during the same quarter of the previous year, an increase of 34%.
Profits per share during the current period amounted to SR1.7, compared to 1.19 riyals during the same period of the previous year.
The net profit decreased by S 81 million (-277%) as a result of a decrease in operational profit by SR72 million (-220%) and a decrease in gross profit by SR 52.47 million (-30%). The decrease in gross profit is attributable to the sales mix which had a negative impact during the quarter. Also, reprising of some products by SFDA and a decrease in sales for one of our licensor products had a negative impact on gross profit. The operating profit further decreased due to an increase in operating expenses by SR20 million in line with the company’s transformation strategy.
The company reported a net loss SR51.77 million for the current quarter compared to net profit of SR30.66 million for the previous quarter. The reduction in net profit is mainly due to the sales mix which had a negative impact during the quarter and an increase in operating expenses.
Sales revenue declined by SR81 million (-10.35%) compared to same period last year mainly due to the sales mix which had a negative impact. Also, repricing of some products by SFDA as well as a decrease in sales of one of our licensor products negatively impacted revenues. Despite the significant decline in revenues, the gross profit only declined by SR10 million (-3%) due to the improvement in production utilization. Operating profit decreased by SAR 60 million (-103%) mainly due to increase in selling and marketing expenses by SAR 21 million, general and administration expenses by SAR 19 million and an increase in other operating expenses by SR12 million in line with the company’s transformation strategy. Decrease in provision for credit losses by SR3 million slightly reduce the negative impact on operating profit. Increase in zakat expenses by SR15 million further contributed towards net loss for the current period.
Certain comparison items of income and expenses have been reclassified to conform with the presentation of the current period.
The profit per share for the current period and for the similar period last year were calculated after deducting the non-controlling interests’ share of the net profit.