Revenue slightly up 2% YoY in 3Q25, meeting our estimate
SADAFCO’s revenue rose 2% YoY in 3Q25, coming in line with our estimate. The company witnessed strong traction in emerging sales channels, including exports (+28% YoY), out-of-home (+41% YoY), and e-commerce (+153% YoY), while also registering growth in legacy retail channels, particularly modern trade.
Net profit surges 35% YoY on strong operating profit growth
Gross profit fell 18% YoY owing to an increase in raw material and other costs, and lower ice cream sales. Yet, operating profit surged 42% YoY as the company booked SAR 107.4mn one-off gain on the sale of a property in other operating income. Thus, driven by strong operating profit growth, net profit climbed by 35% YoY in 3Q25.
U Capital View
The company weathered weak operating conditions well by maintaining its market share in key product categories — UHT milk (57.7%), tomato paste (53.9%), and ice cream (30.2%). We have an Accumulate rating on SADAFCO with a target price of SAR 309.50/share.