What was SADAFCO's net profit in H1 2026?

Net profit reached SAR 170.26 million, down 30.2% year-on-year.

What caused SADAFCO's profit decline in H1?

The decline was mainly due to higher raw material costs, shipping disruptions, and lower revenue from its Polish subsidiary Mlekoma.

Did SADAFCO announce any dividend with these results?

No dividend was announced in the release.

SADAFCO H1 2026 Net Profit Drops 30% to SAR 170.3M

Q: How did SADAFCO's Q2 2026 revenue compare to Q1?

Revenue rose 1.7% to SAR 749.98 million, and net profit increased 7.6% to SAR 88.24 million.

Saudia Dairy & Foodstuff Co. (SADAFCO) reported a 30.2% year-on-year decline in net profit for the first half of 2026 to SAR 170.3 million, while revenue fell 2.6% to SAR 1.49 billion, dragged down by weaker performance at its Polish subsidiary Mlekoma.

Saudia Dairy & Foodstuff Co. (SADAFCO), listed on the Saudi Stock Exchange under ticker 2270, announced its interim financial results for the six months ended June 30, 2026, posting a net profit of SAR 170.26 million, down 30.2% from SAR 243.78 million in the same period last year. Consolidated revenue declined 2.6% to SAR 1.488 billion.

Key Financial Results

Item	H1 2026	H1 2025	Change
Consolidated Revenue	SAR 1,487.58M	SAR 1,527.81M	-2.6%
Net Profit (attributable)	SAR 170.26M	SAR 243.78M	-30.2%
Gross Profit Margin	31.1%	35.7%	-4.6 ppt

Key Highlights

The company attributed the profit decline to:

Higher raw material costs.
Surcharges related to regional maritime disruptions.
General inflationary pressures and fuel price increases.
A sharp contraction in Polish subsidiary Mlekoma's revenue from SAR 250M to SAR 147M due to lower selling prices and volumes.

Offsetting this, SADAFCO's core business (excluding Mlekoma) grew sales 4.9% on volume gains across major product categories.

On a quarterly basis, Q2 2026 revenue rose 1.7% QoQ to SAR 749.98 million, and net profit increased 7.6% to SAR 88.24 million, driven by favorable seasonality and improved product mix.

Future Guidance

No specific forward guidance was provided, but the company noted it maintains a strong balance sheet and healthy cash position.

Stock Impact

The mixed results may pressure the stock in the near term due to the earnings miss, but the resilient core business and sequential improvement could provide support.

What This Means for Investors

SADAFCO faces margin headwinds from elevated input costs, but the core business's volume growth signals sustained demand. Investors should monitor raw material trends and Mlekoma's recovery.