SADAFCO expects steady performance on persisting demand, focuses on volumes: CEO

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

Patrick Stillhart, CEO of Saudia Dairy and Foodstuff Co. (SADAFCO), expects continued stable and balanced performance over the coming period, driven by continued demand across core categories, in addition to momentum in high-impact channels.

He told Argaam that the company’s focus will remain on boosting sales volumes, consolidating its market leadership, improving operational efficiency, and undertaking investments that support long-term sustainable value.

Stillhart also stated that demand remained stable across core categories during the first quarter of 2026, underpinned by seasonal consumption during the holy month of Ramadan, in addition to continued growth in e-commerce, food service, and export channels.

The overall performance reflects the resilience of the company’s business, supported by its strong market positions and operational discipline, along with continued momentum in key growth areas, and a focus on ensuring continuity of operations and investments, product availability, and enhancing efficiency across the value chain, he added.

“Additionally, the dairy segment continues to be highly resilient, backed by stable demand for essential products. Despite ongoing uncertainty, the segment’s fundamentals remain strong,” said the CEO, pointing to the growing trend toward long-life milk due to its ease of use and reduced waste thanks to its longer shelf life.

Meanwhile, the decline in Q1 2026 profit was mainly due to the cost cycle currently affecting the segment. Revenues were impacted by the performance of some international operations, as the Polish business unit saw lower revenues of about 32% in Q1 2026 despite stable volumes, due to fluctuating prices in commodity markets, according to Stillhart.

The rest of the company’s operations, during the same quarter, achieved revenue growth of 2.9%, along with strong sales volume growth of 8.5%. This was supported by an improved market share, in addition to continued momentum in key products such as the one-liter milk bottles, ice cream sandwich, and tomato paste, he added.

Stillhart further explained that revenues increased by 8.3% quarter-on-quarter for Q1 2026, driven by higher quarterly sales volumes and seasonal demand during Ramadan. This is besides the continued growth in e-commerce, food service, and export channels, coupled with stable demand across core categories.

He pointed to the ongoing proactive management of SADAFCO’s business portfolio, ensuring that operations align with the strategy aimed at strengthening core business units and achieving sustainable growth.

According to Argaam’s data, SADAFCO’s profit declined to SAR 82 million in Q1 2026, down 35% from SAR 126.1 million during the same period in 2025.