SADAFCO's Q1 topline growth driven by expansions, Q2 indicators 'positive': CEO

Patrick Stillhart, CEO of Saudia Dairy and Foodstuff Co. (SADAFCO) 

Saudia Dairy and Foodstuff Co. (SADAFCO) posted robust revenue growth of 15% year-on-year (YoY) in Q1 2023/2024, backed by sales and marketing initiatives and the rebranding of its Saudi dairy products, said CEO Patrick Stillhart. 

In a phone interview with Argaam, Stillhart added that the exports business grew by 47% YoY in Q1, which mainly led to improved capabilities and productivity.

He also indicated that this was driven by the vertical expansion in the countries of operation, such as Yemen, Iraq, Palestine, Libya, Sudan, Somalia, Djibouti, and Mauritania. This is in addition to the horizontal expansion in various countries such as Syria, UAE, Oman, Brunei, and Canada.

The CEO pointed out that the profit increase came amid strict control of cost and prices, explaining that SADAFCO's consistent performance reinforces its brand strength.

SADAFCO saw strong demand in all product segments, especially milk, ice cream, and tomato paste, as it continues to maintain its market leadership, said Stillhart.

He highlighted that the indicators for the second quarter appear to be positive, coupled with the upcoming initiatives that will uphold the growth of both the on-shelf and freezer product categories.

The company's market share, as of June 30, is still dominant, with positive trends compared to the shares announced in May 2023, when the milk products segment accounted for 63%, tomato paste (54.8%) and ice cream (30.4%), according to the CEO.

Stillhart added that the dairy producer is currently implementing a set of innovations for upcoming new products catering to current or future consumer needs. This is in addition to improving commercial and financial performance, in a bid to meet customer demand and grow its business sustainably. 

He stated that the company has several future innovative opportunities that are currently under study, noting that innovation helps anticipate market changes and seize opportunities to enhance future growth.

As for expansion and acquisition plans, Stillhart said that SADAFCO is always open to exploring potential acquisitions to capitalize on its strengths in the Saudi market and its current distribution capabilities. The company is also open to joint manufacturing opportunities, which will help boost asset efficiency and meet consumer needs. 

SADAFCO reported a net profit of SAR 108.5 million for the first quarter ended June 30, 2023, compared to SAR 54.3 million a year earlier, data available to Argaam showed.