increasing consumer demand for its high quality dairy and foodstuff products and a drop in international commodity prices, Saudia Dairy and Foodstuff Company (Sadafco) has again achieved an increase in its profits for the six months that ended Sept. 30, 2015. According to the recently announced results for the second quarter, Sadafco achieved a consolidated net profit of SR54.1 million, an increase of 13.2% compared to the same period last year (SR47.8 million). The increase in net profit has been attributed to a sales increase of 11.7% compared to the same period last year. "We are pleased with our performance for Q2 2015. Considering that the market grew by around 6%, Sadafco's steady double-digit growth achieved through consistent improvements in the execution of our sales and distribution capabilities and by continuous investments in our brands is significant", said Wout Matthijs, Chief Executive Officer, Sadafco. "The results reflect the trust Saudia consumers place in our product range and the quality of our service." The operating profit recorded in Q2 2015 was SR58.1 million, an increase of 12.4% compared to the same period last year (SR 51.7 million), and the gross profit margin improved from 30% to 34.5%, with lower cost of sales due to favorable raw material prices being the main contributor. "The continued top line growth this quarter generated improved profitability both at gross margin and operating income levels. In order to continue the current trend of profitable top and bottom line growth, we are aiming to focus on the core strengths of our brands," added Matthijs. The latest financial results also note that the total gross profit for Q2 2015 amounted to SR166.2 million, an increase of 28.3% compared to the same period last year (SR129.5 million). Earnings per share (EPS) for Q2 were SR3.46 compared to SR2.52 for the same period last year.
