[Jeddah, Saudi Arabia, 05 November 2026:] Saudia Dairy and Foodstuff Company (SADAFCO) has announced its financial results for the third quarter of 2026, maintaining its leadership across key categories and continued profitability, with volume growth across its core product portfolio over the first nine months of the year.
Consolidated gross profit margin improved to 30.6% in the third quarter, from 28.3% a year earlier, supported by an improved product mix at Mlekoma, SADAFCO’s Polish subsidiary, which has shifted production towards higher-value products. Continued cost discipline also contributed to a SAR 7.2 million reduction in selling and distribution expenses.
The company retained its market leadership, with market value shares of 60.2% in long-life plain milk, 52.1% in tomato paste and 30.8% in ice cream. It also strengthened its position in long-life flavoured milk, increasing its share to 24.8%, according to Nielsen data for the moving annual total ending September 2026.
For the first nine months of 2026, revenue excluding Mlekoma increased by 0.55% to SAR 1.96 billion, driven by volume growth across the core product portfolio, with sales volumes ahead of the same period last year. The continued shift among Saudi consumers from fresh to long-life milk has supported volume growth across existing and emerging channels. SADAFCO maintained a strong balance sheet through disciplined working capital management, with a cash position of SAR 502 million.
Revenue for the third quarter reached SAR 678.5 million, a decrease of 14.2% compared with the same quarter last year mainly driven by a decline in Mlekoma revenue reflecting softer market prices in certain categories and a shift in production mix towards higher value products.
Net profit attributable to shareholders reached SAR 66.7 million, compared with SAR 184.5 million in the same quarter last year, a decrease of 63.9%. The comparison primarily reflects a one-off gain of SAR 107.4 million from the sale of land recorded in the prior-year quarter. Higher input and logistics costs also affected profitability. Net profit margin remained healthy at 9.8%.
For the first nine months of 2026, consolidated revenue reached SAR 2.17 billion and net profit attributable to shareholders amounted to SAR 236.9 million, with a net profit margin of 10.9%.
Commenting on the results, Patrick Stillhart, Chief Executive Officer of SADAFCO, said: “Continued demand for our core products and our leading market positions provide a solid foundation for the business. Volume growth across our core product portfolio over the first nine months demonstrates our resilience amid heightened competition and regional tensions. Despite higher input and logistics costs, we maintained profitability and remain focused on strengthening execution and improving efficiency. We will continue to invest in our brands and build on our financial strength to deliver sustainable, long-term value for our shareholders.”
