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SADAFCO headquarters
Saudia Dairy and Foodstuff Co. (SADAFCO) experienced, like other companies in the sector, problems related to raw materials and high costs, in addition to supply chain challenges, CNBC Arabia reported, citing CEO Patrick Stillhart.
He added that the company handles such issues through controlling costs.
"There is an impact on pricing strategies as the pricing policy is reviewed regularly," Stillhart said, adding that the company seeks not to place a burden on consumers, but fails to avoid it sometimes.
When asked about the new ice cream factory, the top executive indicated that it is proceeding as expected, and the factory is designed to supply the local market with its products.
The factory will likely see further growth over the coming years and would also export its products to foreign markets in the future.
Touching on the upgrade of the dairy factory in Jeddah, Stillhart said it is proceeding as scheduled, noting that the factory's capacity will allow it to provide the local and foreign markets with its products.
SADAFCO reported a net profit after Zakat and tax of SAR 145.9 million for the nine-month period ended on Dec. 31, 2021, a decline of 29%, compared to SAR 204.5 million in a year-earlier period, according to data available with Argaam.
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