SADAFCO maintains healthy profit margin despite pressures: CEO

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

Patrick Stillhart, CEO of Saudia Dairy and Foodstuff Co. (SADAFCO), said the company faced pressures from rising prices of raw materials, diesel costs and inflation, but maintained a gross profit margin of 34.6%, driven by efficiency initiatives.

Speaking to Argaam, he added that the company witnessed broad-based growth across various geographic and product categories, with exports increasing by 19.7%, food services by 16.9%, and e-commerce by 26.5%. He stated that the launch of 16 new products contributed to the overall boost in revenue performance during the second quarter.

SADAFCO continues to maintain its strong market position within core categories, with a 57.4% market share in long-life milk, 53.6% in tomato paste, and 30.4% in ice cream. This reflects consumer confidence in Saudi products and their ability to achieve sustainable growth in volumes despite fierce competition, Stillhart said.

He also pointed out that Mlekoma, a SADAFCO subsidiary, is a strategic part of the value chain, particularly as a European hub for sourcing and processing raw materials, adding that the company is implementing initiatives to improve its profitability.

On his expectations for Q3 2025, the CEO expressed cautious optimism, while continuing to invest in future growth through capital expenditures, advertising and promotions, as well as attracting new talent. The company will also focus on enhancing operational efficiency, product innovation, and geographic expansion, he added.

According to Argaam data, SADAFCO’s net profit fell to SAR 243.8 million in H1 2025, compared to SAR 254 million a year ago. Q2 2025 net profit declined 8% year-on-year to SAR 117.7 million.