Saudia Dairy and Foodstuff Company posts strong sales, profit growth in 2024

SAUDI ARABIA – Saudia Dairy and Foodstuff Company (SADAFCO), a leading dairy and foodstuff producer in Saudi Arabia, reported robust financial performance for 2024, driven by strong sales and improved profit margins. 

According to a company report, net profits increased by 18.5% to US$75.2 million, up from US$63.5 million in 2023, while sales rose 7.8% to US$672.4 million. 

The growth reflects SADAFCO’s strategic focus on innovation, market expansion, and operational efficiency amid a thriving Saudi dairy market.

The company’s success comes as the Saudi Arabia dairy products market, valued at $8 billion in 2024, is projected to reach US$10.8 billion by 2031, with a compound annual growth rate of 4.2%. 

Government initiatives under Vision 2030, emphasizing domestic production and food security, have bolstered the sector. SADAFCO capitalized on this, enhancing its product portfolio and distribution networks. 

“We are committed to meeting consumer needs with high-quality, innovative products,” said Patrick Stillhart, CEO of SADAFCO, highlighting the company’s focus on sustainability and customer satisfaction.

SADAFCO’s flagship brands, including Saudia Milk and Saudia Ice Cream, saw strong demand, particularly in the Gulf Cooperation Council (GCC) region. 

The company also expanded its presence in Poland through a strategic move, with its former partner, Germany-based DMK, acquiring the remaining stake in Mlekoma Dairy, as reported by DairyNews.today. 

This transaction allows SADAFCO to streamline operations and focus on core markets. Additionally, investments in production facilities and supply chain optimization helped reduce costs, contributing to the profit uptick.

“We aim to maintain our leadership in the region by adapting to market trends and investing in technology,” said a SADAFCO spokesperson. 

The company also navigated global challenges, such as fluctuating commodity prices, by leveraging local sourcing and efficient inventory management. 

Early in 2024, global dairy prices rose, yet SADAFCO maintained competitive pricing, thereby boosting consumer trust.

The financial results align with broader industry trends, as competitors like Danone and Nestlé also reported growth in 2024. 

SADAFCO’s performance positions it as a key player in the region’s dairy sector, with plans to further innovate and expand in 2025. 

The company’s board proposed a dividend of US$1.60 per share, reflecting confidence in sustained growth.

 As Saudi Arabia’s economy grows, SADAFCO’s focus on quality and market responsiveness ensures its continued success.

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