SADAFCO profit drops 4% to SAR 243.8M in H1 2025; Q2 at SAR 117.7M

Saudia Dairy and Foodstuff Company (SADAFCO) reported a 4% drop in net profit to SAR 243.5 million in H1 2025, from SAR 254 million a year earlier.

Gross profit margin slipped in H1 2025 to 35.2% from 36.4% in H1 2024, impacted by inflation and higher raw material costs. While excluding Mlekoma, the margin improved to 41.5% from 40.3%.

Selling and distribution expenses rose to 16.3% of net sales from 15.2%, with a SAR 36.7 million increase mainly tied to strategic expansion and controlled marketing spend across key channels.

General and administrative expenses held steady at 3.9% of sales, supported by strict cost controls.

Finance income declined by SAR 5.2 million, reflecting dividend payouts and lower profit rates on Murabaha deposits, while Zakat is calculated based on the zakat base.

Net profit margin narrowed in H1 2025 to 15.6% from 17.6% in H1 2024, pressured by rising costs and lower gross margins; excluding Mlekoma, the margin reached 18.6%.

Revenue climbed 8.6% YoY to SAR 1.6 billion, driven by growth in foodservice, e-commerce, and export channels, new market entries, and strong performance in Poland.

In Q2 2025, SADAFCO’s net profit fell by 8 % to SAR 117.66 million from SAR 127.79 million in the same period last year.

Net profit also declined by 6.7% from SAR 126.11 million in Q1 2025.

Total shareholders’ equity, no minority interest, reached SAR 1.7726 billion as of June 30, 2025, compared to SAR 1.7724 billion in the prior-year period.

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