SADAFCO reports net profit of US$31.36M M in Q2 2025

SAUDI ARABIA – Saudi Arabia Saudia Dairy & Foodstuff Company (SADAFCO), a leading producer of UHT milk, tomato paste, and ice cream, announced its financial results for the six months, recording a net profit of US$31.36M for Q2 2025.

It recorded US$209.30 million (SAR 785.4 million) in sales during Q2 2025, marking a growth of 8.75% compared to the same period last year. Net profit for the quarter stood at US$31.36 million (SAR 117.7 million), diluted by raw material cost increases and other inflationary pressures.

Patrick Stillhart, CEO of SADAFCO, said: “Our second quarter showed steady revenue growth across our core categories and markets. We maintained our strong market shares — 57.4% in UHT milk, 53.6% in tomato paste, and 30.4% in ice cream — and achieved strong performance in export, out of home, and e-commerce channels.”

SADAFCO launched 16 new products during the quarter and continued investing in brand-building while managing costs effectively. Despite inflation and higher input costs, the company delivered a healthy net margin of 15%.

SADAFCO’s financial position remains solid with shareholders’ equity of SAR 1.773 billion and a cash balance of SAR 672.4 million.

“We remain focused on disciplined growth, strategic innovation, and long-term value creation. With a robust balance sheet and expanding product portfolio, SADAFCO is well-positioned to navigate market conditions and deliver sustainable results,” Patrick added.

During the 2024 financial year, the company’s 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.

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.

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