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Sadafco's Q3 profit rises 27%

Sadafco's Q3 profit rises 27%
The rise in profits was mainly prompted by higher sales
4.08% 178.60 7.00

Riyadh – Mubasher: Saudia Dairy and Foodstuff Company (Sadafco) reported a 26.95% year-on-year profit growth during the third quarter ended 31 December 2019.

Net profits, after zakat and tax, rose to SAR 68.06 million in the October-December period of 2019, compared to SAR 53.6 million in the year-ago period, the company said in a statement to the Saudi Stock Exchange (Tadawul) on Sunday.

The rise in profits was mainly prompted by higher sales, lower discounts, and production efficiency, outweighing raw materials cost inflation

On the other hand, selling and distribution expenses increased on the back of higher advertising and promotion costs and general and administrative expenses grew due to an increase in expat levy.

As for the nine-month period ended 31 December 2019, Sadafco’s net profits advanced by 21.35% to SAR 191.1 million from SAR 157.48 million in the corresponding period a year earlier.

It is worth mentioning that Sadafco’s fiscal year starts on 1 April and ends on 31 March.

During the second quarter ended 30 September, the Saudi firm logged a net profit of SAR 65.12 million, compared to SAR 53.83 million in Q2 a year earlier.