SADAFCO leads food market, dairies drive revenue growth: CEO

Saudi Dairy and Foodstuff Co. (SADAFCO) continues to dominate the market across various food categories, with long-life milk holding a market share of 60.9%, ice cream at 32.2%, and tomato paste at 53.2%, the company’s CEO, Patrick Stillhart, told Argaam.

 

Stillhart said that the core dairy products, particularly milk and ice cream, experienced strong demand, which significantly contributed to the company’s revenue growth during the third quarter.

 

He added that new products, such as ready-to-drink coffee, have gained increasing popularity, reflecting a shift in consumer preferences toward convenient, high-quality options. This trend supports the company’s strategy of innovation and meeting the evolving needs of the market.

 

Regarding third-quarter performance, Stillhart noted that the rise in profits reflects ongoing efforts to increase market share in key sectors such as milk, tomato paste, and ice cream.

 

The company achieved notable double-digit growth in export, e-commerce, and out-of-home service segments, driven by enhanced operational efficiency and a proactive response to changing market demands.

 

These results align with SADAFCO’s strategic growth drivers and priorities to achieve profitable growth, Stillhart emphasized, noting that the focus on operational efficiency and expanding the company’s presence in various sectors has helped boost revenue and profitability.

 

During Q3 2024, the company launched several new products, including hot sauce, honey, frozen yogurt, and ready-to-drink coffee. They were designed to fulfill the growing preferences of consumers. They contribute to strengthening the portfolio and enhancing the company's position as a leader in the food and beverage sector.

 

The CEO praised SADAFCO Poland for its significant sales growth and disclosed profits resulting from strategic restructuring initiatives.

 

As for the outlook for the fourth quarter, Stillhart mentioned that SADAFCO does not provide specific guidance on future results but continues to focus on executing its strategies and capitalizing on market opportunities to achieve sustainable growth while consistently delivering value to its shareholders.

 

Regarding sustainability initiatives, Stillhart emphasized the company’s commitment to reducing energy and water consumption, utilizing environmentally friendly packaging, and improving operational efficiency to lower long-term costs. The company’s sustainability roadmap includes comprehensive measures, such as waste reduction and reliance on renewable energy, ensuring alignment with global standards.

 

Commitment to sustainability is a key element of the company's future vision, as it enhances SADAFCO’s market leadership in Saudi Arabia and supports sustainable growth going forward, he added.

 

According to Argaam data, SADAFCO recorded a 26% rise in net profit to SAR 391.1 million in the first nine months of 2024, from SAR 310.2 million a year-earlier. The third-quarter net profit stood at SAR 137.1 million.