CEO emphasizedSADAFCO Company Patrick Stillhart, that there is currently no need and no intention to raise the company’s capital.
Stillhart added in an interview with “Al Arabiya”, that the largest percentage of inflation for the company is an importer, noting that “SADAFCO” is unable to pass all the increases in the prices of raw materials to consumers to maintain their satisfaction.
He continued, “As SADAFCO, we import a large percentage of raw materials from outside the Kingdom, and therefore inflation for us is an import due to the high prices of imported raw materials.”
He said: “We want to satisfy consumers and give them value from our products and our brand, so we don’t want to burden the consumer with very high prices, but nonetheless we want to remain in a position to secure value.”
Stillhart added: “Given the past 6 to 8 months of the hikes we’ve seen in some raw materials we can’t fully pass on to consumers, so we are careful and when we do raise prices we do that on select products.”
On the impact of the war in Ukraine, the CEO said: “It was not noticeable to us because what we import from Ukraine is not much… Also, our strategy to secure the sources we import from was to move quickly to mitigate risks.”
He stated that the problem is not only the war in Ukraine, but also the disruption of supply chains from China due to Corona, and thus shipments were delayed, and therefore the company expanded its coverage and was not affected much by these events.
Stillhart said the company’s fiscal year runs from April 1 to March 31, so there are still about 7-8 months left, adding: “I am cautiously optimistic about the company’s performance this year.”