Saudi Dairy and Food Products Company (SADAFCO) announced that it had made net profits in the third quarter of 2022, equal to 86.1 million riyals, compared to 53.7 million riyals in the third quarter of 2021, with an increase of 60.4%.
SADAFCO’s profits grew on a quarterly basis by 53%, compared to 56 million riyals in the previous quarter.
The company attributed the main reason for the increase in net profit in the quarter in compared to the same quarter of the previous year, with a 31% increase in sales, driven by back-to-school activities and the opening of new shopping centers. millions of riyals and innovative products; And increase the sales of freezers.
These initiatives have also led to an increase in sales of all types of products, with the increase in the value of sales of milk (28%), ice cream (25%) and tomato concentrate (28%). helped increase sales by 90% due to rising material prices prime.
A profit margin of 32.2% compared to 30.5% the previous year was achieved thanks to the increase in sales prices and a greater focus on selling products with higher profit margins, mainly for ice cream and production efficiency for Jeddah producers through automation and use of the best regulated sources of materials prime.
Sales and distribution expenses decreased in percentage of sales (11.5% compared to 14.4% last year), while they increased in worth 3.9 million riyals due to increased sales related activities such as hiring new sellers and depreciation for new sales vehicles, refrigerators, etc.
General and administrative expenses decreased in percentage of sales (4.2% compared to 5.2% last year), while the value increased by 1.8 million riyals, an increase of 6.8%, reflecting the increase in inflation rates . The main components of tale personnel expenses increased.
Financial income increased by 4 million riyals compared to last year due to the increase in interest rates on deposits. The cost of the loan also increased by 29.5 million riyals following the increase in the fair value of the put option driven by the positive performance Mellikoma Group operating income of 17 million riyals (compared to 26 million riyals in the first quarter) and of the currency difference losses due to the depreciation of the Polish currency (zloty) exchange rate and rental bonds for an amount of 12.5 million riyals.
The company said zakat and income taxes were down 2.7 million riyals from last year due to the positive impact of the deferred tax on the right to sell option fees.
During the first nine months of 2022, SADAFCO’s profits grew by 55% to 142.4 million riyals, compared to 91.7 million riyals in the corresponding period of 2021.
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