(MENAFN Press) Saudia Dairy and Foodstuff Company (SADAFCO), a publicly listed company which has been producing high-quality dairy and foodstuff products under the Saudia Brand since 1977, has released its audited full year 2011-12 financial statements, which have shownsubstantial increases in overall earnings, profits and sales as compared to 2010-11.
SADAFCO's latest financial results that were recently approved by the company's shareholders at its extraordinary general meeting (EGM) in Jeddah outlined SADAFCO's net profit for theyear at SAR 152 million as compared to SAR 129 million from 2010-11, an increase of 17 percent. The earnings per share (EPS) for the year 2011-12 are SAR 4.69 versus SAR 4 for the same period last year.
The growth in net profit for the period 2011-12 has been mainly attributed to the significant 18 percent rise in sales which contributed towards achieving a figure of SAR 1.336 million versus previous years' sales of SAR 1.134 million.This major improvement has been achieved due to various brand activation initiatives and operational excellence activities that were implemented across all functions of the organization.
Murabaha income was also a contributing factor for SADAFCO's growth in net profits during this financial year.
As per the recently announced results, SADAFCO's gross profit for the year is SAR 415 million compared to SAR 368 million in 2010-11, an increase of 13 percent.
In addition, operating income for the financial year that ended on March 2012 increased by 22 percent to SAR 153 million, thereby continuing the steady growth and strong performance trend which SADAFCO has successfully maintained over the past fiveyears.
"The financial year 2011-12 was an exciting year for SADAFCO as the company maintained double digit growth for the third consecutive year and delivered substantial operational profits.
The healthy growth trends were echoed across all five geographical regions of Saudi Arabia as well as through SADAFCO operated depots in Jordan, Bahrain and Qatar", said WoutMatthijs, Chief Executive Officer, Saudia Dairy and Foodstuff Company.
He further added, "SADAFCO's financial performance has seen the company continuing to outperform most companies operating in the same field.
Our gross sales have reached another historical high through strong growth trends and key product groups like Dairy, Tomato Paste and Ice Cream along with continued good performances of recent new product development introductions, most notably Instant Milk Powder, Butter and French Fries".
Market share has improved across all categories and was ahead of expectations as is reflected in the 2011-12 financial results.
These increased market shares are reflective of consumerappreciation of the Saudia brand and testament to consumer trust in a brand that is synonymous with quality.
Continued investment in consumer connectivity programs for all product categories across the Kingdom has contributed towards the enhanced awareness and loyalty levels amongst consumers.
During the year 2011-12, the focus of brand building extended beyond the borders of Saudi Arabia and it also encompassed Qatar, Bahrain and Jordan.
During the extraordinary general meeting held in Jeddah on June 25th 2012, SADAFCO's board of directors reported on the progress of the reopeningof the company's manufacturing facility in Dammam, which was previously closed in 2006.
With an objective to enhance product handling in the region, SADAFCO will also develop a state of the art regional distribution centre in Riyadh.
The shareholders' meeting has also approved the distribution of SAR 3 per share, a total of SAR97.5 million.