Sadafco approves distribution of SR130m dividends

29/05/2017 02:05 AST

THE Saudia Dairy and Foodstuff Company (Sadafco) Annual General Meeting last evening approved the distribution of dividends amounting to SR130 million at SR4.00 per share, the equivalent of 40% of capital.

The approval came as shareholders met in Jeddah last night to conclude formalities for Sadafco's 2016-17 Financial Year.

The timing of the distribution of dividends will be announced later. In spite of the challenges of declining consumer spending and price competition, Sadafco experienced an increase in its profits for the year ended on 31 March 2017.

According to the results, a net profit of SR 302 million was achieved, reflecting a growth of 15.7% over the previous year, as the company stayed true to the strategy of opting for branded value sales over top-line push.

Chief Executive Officer Wout Matthijs said: "We are happy with the year's results in spite of the competitive market conditions where consumers have been exercising restraint and discipline when spending."

"While sales declined by 6.3% to SR1.858 billion, the company delivered an increased net operating income of SR311 million, up 12.7% on last year.

Moreover, Sadafco managed to boost its market positions in tomato paste, ice cream and total plain milk, illustrating the resilience and strength of the Saudia brand that is trusted and favored by Saudis for the past 40 years.

Other resolutions passed last evening saw the approval of the Annual Report, Auditors Report and Financial Results for the year ended 31 March 2017.

Price Waterhouse Coopers (PWC) was appointed auditors for the year ending 31 March 2018. The election of Board Members for the next three-year term commencing on April 1, 2018 was concluded. The Board members elected are Sheikh Hamad Sabah Al Ahmad, Faisal Hamad Mubarak Al-Ayyar, Saeed Ahmed Saeed Basamh, Ahmed Mohamed Hamed Al-Marzouki, Mussad Abdullah Abdul Aziz Al Nassar, Suliman Saud Jarallah Al-Jarallah and Abdullah Yaqoob Bishara.

The AGM also confirmed the Audit Committee for the same period to be comprised of Faisal Al-Ayyar, Tariq Mohamed Abdul Salam and Ahmed Al-Marzouki.

Saudi Gazette