Money and business

126.1 million riyals .. Sadafco profits in the first quarter of 2025

The profits of the Saudi Dairy and Food Products Company (SDFCO) decreased in the first quarter of 2025 by a slight rate of 0.1% to 126.11 million riyals, compared to 126.21 million riyals in the same quarter of last year.
According to the company’s statement on Saudi Arabia’s circulation, the total profit margin (35.9% compared to 35.7%) thanks to the cost efficiency in factories, despite the high prices of the main raw materials and inflation trends (such as diesel prices). The total profit margin (with the exception of the results of Malikuma) reached 42.2%, compared to 39.7% last year.
• The sales and distribution expenses maintained 16.6% of net sales compared to 15% compared to last year. At the absolute value, the increase of 21 million riyals for the distribution sales expenses was mainly due to the increase in strategic spending on advertising and promotional sales campaigns to consolidate the brand in new categories.
• Public and administrative expenses amounted to 3.8% of sales, which are the same level last year, despite inflation factors.
• The net financing income decreased by 2.6 million riyals due to the low cash balances as a result of the distribution of profits of 388 million riyals.
• Zakat and tax are calculated on the basis of the zakat bowl.
The net profit margin reached 16.2% compared to 17.6% last year. Before the results of Malicoma, the net profit margin was 19.2% compared to 20.4%.
The net profit increased to 126.1 million riyals by 36.9% compared to 92 million riyals in the previous quarter.
• The total profit margin increased 35.9% compared to 35.2% due to the focus on inventory purchases and the efficiency of manufacturing.
• The sales and distribution expenses decreased compared to the previous quarter due to the decrease in spending on advertising and promotional campaigns.

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