Sadafco declares consolidated financial results

For the 3rdquarter ended 31 December 2012, SADAFCO generated a consolidated net profit amounting to SAR35.6m, a decrease of 17% compared to the same period last year (SAR42.69m) and a decrease of 23% compared to the 2nd quarter 2012 (SAR46.13m).

As per the recently announced results, the total gross profit for the 3rdquarter ended 31 December 2012 amounted to SAR115.76m, an increase of 13% compared to the same period last year (SAR102.65m). Furthermore, the operating profit for the 3rdquarter ended 31 December 2012 amounted to SAR39.08m, a decrease of 8% compared to the same period last year (SAR42.41m).

"While SADAFCO continued to achieve robust sales growth and operational profits, a decrease in net profit for the current quarter is mainly attributed to negative impact of stock revaluation, higher manufacturing and overhead due to the initial startup of Dammam factory, higher selling and distribution expenses as planned in Q3 and lower income from Murabaha deposits," said Wout Matthijs, Chief Executive Officer, Saudia Dairy and Foodstuff Company."

He further added that demand for SADAFCO's products increased due to the implementation of consumer focused commercial activities in the market, rejuvenation of the ice cream business and enhanced efficiencies across various functions.

SADAFCO also announced that the consolidated net profit for the nine month period ended 31 December 2012 amounted to SAR113.7m, an increase of 3% compared to the same period last year (SAR110.16m), while earnings per share (EPS) for the nine months period ended 31 December 2012 was SAR3.50 compared to SAR3.39 for the same period last year.

The total gross profit for the nine month period ended 31 December 2012 amounted to SAR364.14m, an increase of 15% compared to the same period last year (SAR316.42m) and the operating profit for the nine month period ended 31 December 2012 amounted to SAR123.45m, an increase of 8% compared to the same period last year (SAR114.34m).