Saudia Dairy and Foodstuffs Company (Sadafco) announced a net profit of SR57.3 million ($15.3 million) for the financial year 2008, up 86 per cent over the previous year.

The company, whose major shareholder is Kuwait’s United Industries Co, a unit of Kipco Asset Management Co, hopes to build revenues with the launch of new products.
Late last year it re-launched its flavoured milk in a new Tetra package and promoted the product aggressively in regional markets.
In 2006 the company began a restructuring process.
That development as well as the launch and re-launch of new products helped contribute to a 22 per cent rise in its fourth-quarter profit (from January 1, 2008 to March 31) to SR26.4 million. The company’s financial year extends from April 1 to March 31.
By the end of 2007 the company completed Phase 1 of its restructuring plan. As part of this phase an extension to the regional distribution centre at its Jeddah headquarters was inaugurated. Also a new product was added to the company’s cream products range which, it said, was well received by consumers. Work is underway on phase 2 of the restructuring involving modernisation, expansion and asset development.
Sadafco was established in 1976 and production commenced in 1977 in Jeddah with a focus on dairy products. The company’s product range was expanded from time to time and now covers dairy items including milk, ice cream and cheese as well as juices tomato paste and snacks. The cheese was introduced through a joint venture with Saudi New Zealand Milk Products while snacks were introduced through the acquisition of Sara Snack Foods Factory, In May 2005, the company went public and is listed on the Stock Exchange of Saudi Arabia. There are over 100,000 shareholders.
Sadafco products are well known in the Saudi and GCC markets.  They also enjoy demand in the Arab markets of Jordan, Egypt, Lebanon and North Africa.
The company claims market leadership in UHT milk (processed in ultra-high temperature) and tomato paste. It claims that five out of seven UHT milk packs sold in Saudi Arabia are Saudia (Sadafco’s brand) products.