Q2 2026 Saudia Dairy & Foodstuff Company Earnings Call

August 4, 2026

Nada Amin [Director: Hello, everyone, welcome to SADAFCO's Q2 results conference call. My name is Nada Amin, and it's my pleasure to be hosting this call on behalf of EFG Hermes. From the company's management team, we have Mr. Glen Kelly, the company's Chief Financial Officer, as well as Ms. Hana AlZourgi, the company's Director of Finance and Investor Relations. Management will begin by making a comment, then we will field some questions. Please go ahead.

Nada Amin: Hello, everyone, welcome to SADAFCO's Q2 Results Conference Call. My name is Nada Amin, and it's my pleasure to be hosting this call on behalf of EFG Hermes. From the company's management team, we have Mr. Glen Kelly, the company's Chief Financial Officer, as well as Ms. Hana Al-zurgi, the company's Director of Finance and Investor Relations. Management will begin by making a comment, then we will field some questions. Please go ahead.

Speaker #1: Hello everyone, and welcome to Sadafco's Q2 results conference call. My name is Nada Amin, and it's my pleasure to be hosting this call on behalf of EFG Hermes.

Speaker #1: from the company's management team, we have Mr. Glenn Kelly, the company's Chief Financial Officer, as well as Ms. Hana Al-Zurghi, the company's Director of Finance and Investor Relations.

Speaker #1: Management will begin by making a comment, and then we will field some questions. Please go ahead.

Speaker #2: Thanks, Hannah. So this is Glenn Kelly, this is the newly appointed CFO for Sadaf Co. And I am joined today by Hannah, the Finance Director from the Sadaf Co Finance team.

Glen Kelly: Thanks, Hana. This is Glen Kelly. This is the newly appointed CFO for SADAFCO, and I am joined today by Hana, the Finance Director from the SADAFCO finance team, and we're joining you today from Jeddah, Saudi Arabia. Thank you for joining us today. We are pleased to announce a Q2 2026 performance with growth across both Saudi Arabia and export markets, underpinned by disciplined execution and a continued focus on sustainable long-term value creation. Consolidated revenue reached SAR 750 million. While this was 2.6 below the same quarter last year, or 4.5% lower on a like-to-like basis when you include discontinued operations, the decline was primarily attributable to our Polish business, Mlekoma. If you exclude Mlekoma and discontinued operations, our revenue grew by 6.9%, supported primarily by strong volume growth across our key product categories and positive momentum in both KSA and export markets.

Speaker #2: And we're joining you today from Jeddah, Saudi Arabia.

Speaker #3: So thank you for joining us today. We are pleased to announce a second quarter 2026 performance. With growth across both Saudi Arabia and export markets, underpinned by disciplined execution and a continued focus on sustainable, long-term value creation, consolidated revenue reached $750 million SAR, while this was $2.6 below the same quarter last year, or $4.5% lower on a like-for-like basis, when you include discontinued operations; the the decline was primarily attributable to our Polish business, Nakoma.

Speaker #3: If you exclude Nakoma, and discontinued operations, our revenue grew by 6.9%, supported primarily by strong volume growth across our key product categories, and positive momentum in both KSA and export markets.

Speaker #3: The strength of our underlying volume performance was evident across several key SKUs in Saudi Arabia. Volume growth in our core milk portfolio was particularly encouraging, with the 1-liter pack increasing by 8% and the 2-liter pack growing by 15%.

Glen Kelly: The strength of our underlying volume performance was evident across several key SKUs in Saudi Arabia. Volume growth in our core milk portfolio was particularly encouraging, with the 1-liter pack increasing by 8% and 2-liter pack growing by 15%. In the 125 ml portfolio, which includes our flavored milk, we delivered volume growth of 31%, while our flagship sandwich portfolio in ice cream also recorded a 30% increase. This performance demonstrates continued consumer demand for our products and the strength of our brands across different formats and consumption occasions. We continue to strengthen our leadership position in core categories while expanding through emerging channels. These channels performed extremely well for the quarter, with out-of-home growing by 43.5%, exports increased by 9.95%, e-commerce nearly quadrupled to 300%, and distributor sales more than doubled to 104.5%. Our market share performance remains strong and retains its market-leading position in key product categories.

Speaker #3: In the 125 million portfolio, which includes our flavored milk, we delivered volume growth of 31%, while our flagship sandwich portfolio in ice cream also recorded a 30% increase.

Speaker #3: This performance demonstrates continued consumer demand for our products, and the strength of our brands across different formats and consumption occasions. We continue to strengthen our leadership position in core categories, while expanding through emerging channels.

Speaker #3: These channels performed extremely well for the quarter, with out-of-home growing by 43.5%, exports increased by 9.5%, e-commerce nearly quadrupled to 300%, and distributor sales more than doubled to $104.5%.

Speaker #3: Our market share performance remains strong, and retained its market-leading position in key product categories. The numbers I'll share with you were MAT to May, 12 months.

Glen Kelly: The numbers I'll share with you were MAT to May 12 months. In UHT plain milk, we went from 57.5% last year to 59.1%. In UHT plain and flavored milk, we grew from last year 49.2% to 51.5%. In tomato paste, there was a slight decline from 53.6% to 51.1%, while in our ice cream category, we showed marginal improvements, growing from 30.8% to 30.9% for the 12 months to May. We are also seeing a continued acceleration in the consumer shift from fresh milk to long-life milk. Long-life plain milk accounted for 55.8% of the market as of MAT May 2026. 12 months earlier, it was at 53.4%, so 240 basis points. This trend has been supported by recent price increases in the fresh milk category and further strengthens SADAFCO's position in the growing UHT market.

Speaker #3: In UHT plain milk, we went from 57.5% last year to 59.1%. In UHT plain and flavored milk, we grew from last year 49.2% to 51.5%.

Speaker #3: In tomato paste, there was a slight decline from 53.6% to 51.1%, while in our ice cream category, we showed marginal improvement, growing from 30.8% to 30.9% for the 12 months to May.

Speaker #3: We are also seeing a continued acceleration in the consumer shift from fresh milk to long-life milk. Long-life plain milk accounted for 55.8% of the market as of MAT May 2026.

Speaker #3: 12 months earlier, this was at 53.4%. So 240 bits. This trend has been supported by recent price increases in the fresh milk category, and further strengthens Sadaf Co's position in the growing UHT market.

Speaker #3: Net profit for the quarter was SAR 88 million, representing a healthy margin of just under 12% at 11.8. Although profit was below last year, this has been impacted by the current geopolitical situation, which is impacting our input costs.

Glen Kelly: Net profit for the quarter was SAR 88 million, representing a healthy margin of just under 12% at 11.8%. Although profit was below last year, this has been impacted by the current geopolitical situation, which is impacting our input costs. Returning to our Polish business, Mlekoma, the performance was affected by significantly lower selling prices and lower volumes, partially offset by a favorable product mix. Although revenue declined due to lower cream sales, our profitability actually improved as production was strategically reallocated towards higher margin powder products. This optimized product mix resulted in stronger gross margin and pleasingly improved overall profitability. We continue to monitor the Polish business closely and remain focused on improving its performance. Looking ahead, SADAFCO remains well-positioned, supported by strong brands, leading market shares, expanding channels, and of course, a robust balance sheet.

Speaker #3: Returning to our Polish business, Nakoma, the performance was affected by significantly lower selling prices and lower volumes, partially offset by a favorable product mix.

Speaker #3: Although revenue declined due to lower cream sales, our profitability actually improved as production was strategically reallocated toward higher-margin powder products. This optimized product mix resulted in a stronger gross margin and, pleasingly, improved overall profitability.

Speaker #3: We continue to monitor the Polish business closely, and remain focused on improving its performance. Looking ahead, Sadaf Co remains well-positioned, supported by strong brands, leading market shares, expanding channels, and, of course, a robust balance sheet.

Speaker #3: We will continue to monitor and assess the potential impact of current regional geopolitical developments. On our operations, whilst we proactively manage our supply chain and operational risks, leverage our inventory coverage, and where appropriate, mitigate potential disruptions.

Glen Kelly: We will continue to monitor and assess the potential impact of current regional geopolitical developments on our operations, while we proactively manage our supply chain and operational risks, leverage our inventory coverage, and where appropriate, mitigate potential disruptions. That's our introduction, and we're happy to open the floor to Q&A.

Speaker #3: So that's our introduction, and we're happy to open the floor to Q&A.

Speaker #1: Thank you, Glenn. To ask a question, you can use the raise hand function, or you can type a question in the chat box. I have I'll begin with a question from Harsh Kadam from Aranka Capital.

Nada Amin [Director: Thank you, Glen. To ask a question, you can use the raise hand function, or you can type a question in the chat box. I'll begin with a question from Harsh Kadam from Aranca Capital. He's asking if you can please confirm if the presentation can be shared. I believe it's available on the company's website under their investor relations tab.

Nada Amin: Thank you, Glen. To ask a question, you can use the raise hand function, or you can type a question in the chat box. I'll begin with a question from Harsh Kadam from Aranca Capital. He's asking if you can please confirm if the presentation can be shared. I believe it's available on the company's website under their investor relations tab.

Speaker #1: He's asking if you can please confirm if the presentation can be shared. I believe it's available on the company's website. Under their investor relations, tab.

Speaker #2: Yeah, the presentation is available in our website. We've launched it as soon as we announced. So yes.

Hana AlZourgi: The presentation is available on our website. We've launched it as soon as we announced.

Hana Al-zurgi: The presentation is available on our website. We've launched it as soon as we announced.

Speaker #3: Yeah, we have this presentation, and historical ones in there as well. Any issues, just let us know.

Glen Kelly: Yeah, we have this presentation and historical ones in there as well. Any issues, just let us know.

Speaker #1: Great, thank you. I'll take the first live question from Abdul Aziz Al-Barraq. Abdul Aziz, please unmute your line on your side.

Nada Amin [Director: Great. Thank you. I'll take the first live question from Abdulaziz Albarrak. Abdulaziz, please unmute your line from your side.

Nada Amin: Great. Thank you. I'll take the first live question from Abdulaziz Albarrak. Abdulaziz, please unmute your line from your side.

Speaker #4: Hello, how are you? I'm Abdul Aziz Al-Barraq from SMB Capital. Thank you, management, for your time and meaningful information that you have shared with us.

Abdulaziz Albarrak: Hello, how are you? I'm Abdulaziz Albarrak from SNB Capital. Thank you management for your time and meaningful information that you have shared with us. I have two short questions. First question it is about the shipping cost. Do we see any impact from the geopolitical tensions, do we see any impact from our supply in SADAFCO as we know that we import our raw material? This is the first question. Second question, do we expect that lower selling prices and volumes for Mlekoma to continue, or it will return to the normal situations which it was in the past? Thank you.

Speaker #4: I have two short questions. First question is about the shipping cost. Do we see any impact from the, as we know, that geopolitical tensions?

Speaker #4: Do we see any impact from our supply in Sadaf Co as we know that we import our raw material? This is the first question.

Speaker #4: Second question, do we expect that the lower selling and lower selling prices and volumes for Malcoma to continue or it will return to the normal situations which it was in the past?

Speaker #4: Thank you.

Speaker #3: Yeah, hi, Abdul Aziz. Thank you for your questions—both are pertinent. Let me take them one at a time. I'll start by answering the last question, which was about Nakoma.

Glen Kelly: Yeah. Hi, Abdulaziz. Thank you for your questions. If I just take those one at a time. Both pertinent questions. Let me start by answering the last question, which was Mlekoma. I'll just take a couple of minutes because this is really material, especially when you look at it from a revenue perspective, but less material from a bottom-line point of view. Just to reiterate, from a consolidated business, it's really important to separate the Polish operations from our core business. The Polish business is a B2B operator with lower margins, whereas our core business here in the kingdom and in the surrounding region is B2C. Consolidated revenue is down 2.6%, but most of that decline sits in Poland, where the dairy commodity prices fell sharply. Okay?

Speaker #3: And I'll just take a couple of minutes, because this is really material especially when you look at it from a revenue perspective. But less material from a bottom line point of view.

Speaker #3: So just to reiterate, from a consolidated business, it's really important to separate the Polish operations from our core business. The Polish business is a B2B operator with lower margins.

Speaker #3: Whereas our core business here in the Kingdom and in the surrounding region is B2C. Consolidated revenue is down 2.6%, but most of that declined sits in Poland.

Speaker #3: Where the dairy commodity prices fell sharply, okay? Now, if we strip out Poland and actually Jordan, which sits in discontinued operations, our business grew 6.9% in the quarter and almost 5% for the year.

Glen Kelly: If we strip out Poland and actually Jordan, which sits in discontinued operations, our business grew 6.9% in the quarter and almost 5% for the year. If we just dig into Mlekoma a little bit more detail, the decline in H1 revenue was almost totally attributable to the dynamics of the Mlekoma business, which I will walk you through. As I said, the margins are significantly below our B2C operations. What's key to remember for our Polish business is product mix. What we've seen in Poland is a significant decline in the price of cream in particular. The commodity price decline has reached over 50% versus last year. We made a strategic decision to alter our product mix and increase production in powders. Although this has resulted in the aforementioned revenue decline, it has actually resulted in an improvement in our net margin for Poland.

Speaker #3: But if we just dig into Makoma a little bit more detail, the decline in H1 revenue was almost totally attributable to the dynamics of the Makoma business, which I will walk you through.

Speaker #3: As I said, the margins are significantly below our B2C operations, so what's key to remember for our Polish business is product mix. What we've seen in Poland is a significant decline in the prices of cream in particular.

Speaker #3: The commodity price decline has reached over 50% versus last year. So, we made a strategic decision to alter our product mix and increase production in powders.

Speaker #3: Although this has resulted in the aforementioned revenue decline, it has actually resulted in an improvement in our net margin for Poland. Secondly, and this is really important for the geopolitical issues we're facing, from a security of supply perspective, for us here in Saudi, we can actually leverage the Nakoma business to support our SMP requirements.

Glen Kelly: Secondly, this is really important for the geopolitical issues we're facing, from a security of supply perspective for us here in Saudi, we can actually leverage the Mlekoma business to support our SMP requirements. Due to the conflict, due to a tightening of supply routes into the region, we have been able to leverage, and we continue to leverage Mlekoma to support us in terms of SMP supply. Although it may seem, I guess counterintuitive, despite the revenue production, we are really pleased with the Polish performance, and from a security of supply perspective, it is proving its weight in gold. If I just revert to your first question in terms of shipping costs. Yes, for SADAFCO, for our fellow competitors in the region, for many people receiving global shipping, we do have a surcharge.

Speaker #3: So, due to the conflict and due to a tightening of supply routes into the region, we had been able to leverage, and we continue to leverage, Makoma to support us in terms of SMP supply.

Speaker #3: So, although it may seem, I guess, counterintuitive, despite the revenue production, we are really pleased with the Polish performance. And from a security-of-supply perspective, it is proving its weight in gold.

Speaker #3: If I may just revert to your first question, in terms of shipping costs. So yes, for Sadaf Co., for our fellow competitors in the region, for many people receiving global shipping, we do have a surcharge.

Speaker #3: This is really dependent on where the product is coming from. This is an unavoidable cost of doing business, which is starting to creep into our numbers.

Glen Kelly: This is really dependent on where the product is coming from. This is an unavoidable cost of doing business, which is starting to creep into our numbers. Q1, most definitely, and to a lesser extent, Q2, were immune from these due to we had stock on the water or stock in our warehouses. As the Q2 progressed, and as we move through the rest of the year, the impact of those costs will start to come through for us and for our competitors as well. I hope that's answered both your questions.

Speaker #3: So Q1, most definitely, and to a lesser extent Q2, were immune from these, because we had stock on the water or stock in our warehouses.

Speaker #3: But as Q2 progressed and as we moved through the rest of the year, the impact of those costs will start to come through for us and for our competitors as well.

Speaker #3: So, I hope that has answered both your questions.

Speaker #4: I'm sorry, but I want to get some more clarity about the shipment cost. We did not see any impact in Q1 and Q2 from that, because we know that raw material is high, and we are affected by that and channel mix.

Abdulaziz Albarrak: I'm sorry, I want to get some more clarity about the shipment cost. We did not see any impact in Q1 and Q2 from that, because we know that raw material, it's high, and we affected from that and channel mix. Do you see that we will see the effect of geopolitical issues in Q3 onward or what?

Speaker #4: But do we do you see that we will see the effect of geopolitical issues in Q3? And word or not?

Speaker #3: Yes. So in Q1, there was no impact specifically from the global shipping costs. We had stock in our hand we had stock in hand with stock on the water.

Glen Kelly: In Q1, there was no impact specifically from the global shipping costs. We had stock in hand, we had stock in the water. We had stock in transit as well. That also saw us through, depending on which line, the majority of Q2. As we entered into June, as we enter into both Q3 and Q4, those increased shipping costs will start to creep into our cost of sales. This specifically will lead to a deterioration in gross margin from those shipping costs.

Speaker #3: We had stock in transit as well. That also saw us through, depending on which line, the majority of Q2. But as we entered into June and as we enter into both Q3 and Q4, those stocks those increased shipping costs will start creeping into our cost of sales.

Speaker #3: And this specifically will lead to a deterioration in margin in gross margin from those shipping costs. Thank you, Abdul Aziz.

Abdulaziz Albarrak: Thank you.

Glen Kelly: Thank you.

Nada Amin [Director: Thank you. We'll take the next question from Ankur Agrawal. Ankur, please go ahead.

Nada Amin: Thank you. We'll take the next question from Ankur Agrawal. Ankur, please go ahead.

Speaker #1: Thank you. We'll take the next question from Anchor AgroWorld. Anchor, please go ahead.

Speaker #2: For the presentation, I think I have a question on the impact of the conflict in terms of the supply chain and the cost base for Sadaf Co.

Ankur Agrawal: For the presentation. I think I have a question on the impact of the conflict in terms of supply chain and the cost base for SADAFCO. That's my first question. Secondly, I think the implications of the 20% increase put through by some of your competitors, especially in the fresh dairy products. Right. How do you think this would affect some of your SKUs, for example, and the pricing trajectory or the discounting on some of those products in the market? Hello, am I audible?

Ankur Agarwal: For the presentation. I think I have a question on the impact of the conflict in terms of supply chain and the cost base for SADAFCO. That's my first question. Secondly, I think the implications of the 20% increase put through by some of your competitors, especially in the fresh dairy products. Right. How do you think this would affect some of your SKUs, for example, and the pricing trajectory or the discounting on some of those products in the market? Hello, am I audible?

Speaker #2: That's my first question. And secondly, I think the implications of the 20% increase put through by some of your competitors, especially in the fresh dairy products.

Speaker #2: Right? So how did it—how do you think this would affect some of your SKUs, for example, and the pricing trajectory or the discounting on some of those products in the market?

Speaker #2: Hello. Am I audible?

Speaker #1: Yes.

Nada Amin [Director: Yes.

Nada Amin: Yes.

Speaker #3: Yeah. Hi, Anchor.

Glen Kelly: Yeah. Hi, Ankur. Okay. I'll do the same as last time, I'll take the second question first. You're right. There has been a price increase in the fresh segments in the kingdom. There's obviously been a compression in margin, competitors in the fresh space took price up across May and June. Before we talk about the economics for us, I just want to take a step back, I really want to highlight that we're seeing share growth and the continued growth of long life versus fresh milk, which I took you through in the opening statement. For us, that's really encouraging. We believe the price increase that you've mentioned will see a slight acceleration in this long-term structural shift from fresh towards long life products. I think there's a number of reasons for that.

Speaker #2: Yeah.

Speaker #3: Okay. I'll do the same as last time, and I'll take the second question first. So you're right. There has been a price increase in the fresh segments in the Kingdom.

Speaker #3: There's obviously been a compression in margin and competitors in the fresh space took the took price up across May and June. So what's before we talk about the economics for us, I just want to take a step back and I really want to highlight that we're seeing share growth and the continued growth of long life versus fresh milk, which I took you through in the opening statement.

Speaker #3: So for us, that's really encouraging. We believe the price increase that you've mentioned will see a slight acceleration in this long-term structural shift, from fresh towards long life products.

Speaker #3: I think there are a number of reasons for that. I think taste, I think availability on shelf, I think the local palate, and I think the strength of our brand are all contributing to that shift from fresh to long life.

Glen Kelly: I think taste, I think availability on shelf, I think the local palette, and I think the strength of our brand is all contributing to that shift from fresh to long life. As the market leader in long life, we are really well-positioned to benefit from that structural shift. That's a real opportunity for us to continue to grow, share, and grow our volumes. We have not taken price. We are really happy with the balance of volume growth, which we're experiencing, share growth, and the economics that that's offering. We know our competitors have taken price, that's obviously a lever that's open to SADAFCO as well. In terms of supporting the bottom line, yes, we have some headwinds in relation to shipping costs. We are looking at ways we can work more effectively.

Speaker #3: And as the market leader in long life, we are really well positioned to benefit from that structural shift. And that's a real opportunity for us to continue to grow share and grow our volumes.

Speaker #3: We have not taken price. We have really happy with the balance of volume growth, which we're experiencing, share growth, and the economics that that's offering.

Speaker #3: But we know our competitors have taken price, and that's obviously a lever that's open to Sadafco as well. So, in terms of supporting the bottom line, yes, we have some headwinds in relation to shipping costs.

Speaker #3: We are looking at ways we can work more effectively. I think Patrick, our CEO, mentioned in a previous call that we're looking at opportunities whether it's new technology or best practice.

Glen Kelly: I think Patrick, our CEO, mentioned in a previous call that we're looking at opportunities, whether it's new technology or best practice, how we can become more effective and potentially do more with less. From a more granular level, we're exploring opportunities in relation to trade spend optimization, supply chain efficiencies. Can we reduce our selling and distribution costs? Making sure our advertising and promotional investment is geared towards high return activity and tighter control on our costs. I hope that's given you a broader answer in relation to the price increase. Specifically on shares, what I've shared with you today are the main numbers, as we progress through the summer and we get more up-to-date share information, we'll see which way the market is trending.

Speaker #3: So how we can come more effective and potentially do more with less. From a more granular level, we're exploring opportunities in relation to trade spend optimization, supply chain efficiencies, can we reduce our selling and distribution costs, making sure our advertising and promotional investment is geared towards high return activity and tighter control on our that's kind of given you a broader answer in relation to the price increase.

Speaker #3: Specifically on shares, what I’ve shared with you today are the May numbers, and as we progress through the summer and get more up-to-date share information, we’ll see which way the market is trending.

Speaker #5: If I may add to what Glenn has said, having said that, we are still waiting. The price increase option is on the table. We want to see how our mitigation plan goes.

Hana AlZourgi: If I may add to what Glen has said. Having said that, we are still evaluating the price increase option. It is on the table for. We want to see how our mitigation plan goes. Yes, decide whether to go for the price increase in the UHT. Okay.

Hana Al-zurgi: If I may add to what Glen has said. Having said that, we are still evaluating the price increase option. It is on the table for. We want to see how our mitigation plan goes. Yes, decide whether to go for the price increase in the UHT. Okay.

Speaker #5: And yeah, besides positively, whether to go for the price increase in the UHT.

Speaker #2: Okay. Very clear. One final question, Glenn. How do you think of capital allocation? I think it's probably the most asked question to any Sadaf Co CFO.

Ankur Agrawal: Okay. Very clear. One final question, Glen. How do you think of capital allocation? I think it's probably the most asked question to any SADAFCO CFO. How are you thinking about capital allocation given the net cash balance sheet, and how should we think of the Polish business in that context, and any potential M&A activity that you may indulge in?

Ankur Agarwal: Okay. Very clear. One final question, Glen. How do you think of capital allocation? I think it's probably the most asked question to any SADAFCO CFO. How are you thinking about capital allocation given the net cash balance sheet, and how should we think of the Polish business in that context, and any potential M&A activity that you may indulge in?

Speaker #2: How are you thinking about capital allocation, given the net cash balance sheet? And how should we think of the Polish business in that context?

Speaker #2: And any potential M&A activity that you may indulge in?

Speaker #3: So okay. So if I'm perfectly honest, one of the appeals for me joining Sadaf Co was the strength of its balance sheet. I was well aware of the brand and the business and its market share.

Glen Kelly: Okay. If I'm perfectly honest, one of the appeals for me joining SADAFCO was the strength of its balance sheet. I was well aware of the brand and the business and its market share. As a CFO, the strength of its balance sheet really appealed to me. Practically no debt, strong cash generation, strong cash balance. I think that's translated into really strong historical dividends. If I look at our payout ratio over the past couple of years, we've been amongst the highest on the Tadawul in terms of dividend payouts. Obviously, this year, we're reporting lower numbers than last year due to the geopolitical issues. We'll have less cash generation this year. Look, as a leading FMCG business, we do look at other opportunities.

Speaker #3: But as a CFO, the strength of its balance sheet really appealed to me. Practically no debt, strong cash generation, strong cash balance. So I think that's translated into really strong historical dividends.

Speaker #3: If I look at our payout ratio over the past couple of years, we've been amongst the highest on the table in terms of dividend payout.

Speaker #3: Obviously, this than last year due to the geopolitical issues. So we'll have less cash generation this year. So look, as a leading FMCG business, we do look at other opportunities.

Speaker #3: We are presented with various opportunities from time to time, and we, of course, look at those and give them due consideration. From a MACOMA perspective, again, revenue is down.

Glen Kelly: We are presented with various opportunities from time to time, we, of course, look at those and give those due consideration. From a Mlekoma perspective, again, revenue is down, revenue is material, again, it is profitable, albeit very low margin percentage. It is profitable at the bottom line. As I also said, from a security of supply perspective, it is paying dividends. That is an integral part of our business as we continue to supply the Saudi consumer. We are looking at options for all our assets, and we consider that from time to time. Really nothing further to add to that at this point in time.

Speaker #3: Revenue is material. But again, it is profitable, albeit at a very low margin percentage. It is profitable at the bottom line. As I also said, from a security of supply perspective, it is paying dividends. That is an integral part of our business as we continue to supply the Saudi consumer.

Speaker #3: But we are looking at options for all our assets, and we consider that from time to time. But really, nothing further to add to that at this point in time.

Speaker #2: Well, many thanks, Glenn. Thank you very much. Thank you.

Ankur Agrawal: Many thanks, Glen. Thank you very much. Thank you.

Ankur Agarwal: Many thanks, Glen. Thank you very much. Thank you.

Speaker #3: Thanks.

Glen Kelly: Thanks, Farquer.

Speaker #1: Thank you. We'll be taking the next question from Sultan El Shalen. Sultan, please go ahead.

Nada Amin [Director: Thank you. We'll be taking the next question from Sultan Al Shalan. Sultan, please go ahead.

Nada Amin: Thank you. We'll be taking the next question from Sultan Al Shalan. Sultan, please go ahead.

Speaker #4: Hello. Yes. Thank you for the call. A couple of questions from my end. I'm just wondering, when I look at the gross margin, it seems the higher contribution of ice cream sales did not materially impact the margin during the second quarter.

Sultan Al Shalan: Hello. Yes, thank you for the call. Just a couple of questions from my end. I'm just wondering, when I look at the gross margin, it seems the higher contribution of ice cream sales did not materially impact the margin during the Q2. I'm looking at it from a sequential point of view, so Q&Q. I'm just wondering why is that. If you remove the reversal in the inventory provision, the margin was flat on a sequential basis despite much higher contribution of ice cream sales. What impacted the margins here, and how did the channel mix have an impact on this? The second question would be, you're saying that shipping costs and material costs likely to come through going forward on margins. I'm just wondering, looking at the current market environment, seems it's more favorable in terms of pricing and lower promotion activities.

[Analyst 1]: Hello. Yes, thank you for the call. Just a couple of questions from my end. I'm just wondering, when I look at the gross margin, it seems the higher contribution of ice cream sales did not materially impact the margin during the Q2. I'm looking at it from a sequential point of view, so Q&Q. I'm just wondering why is that. If you remove the reversal in the inventory provision, the margin was flat on a sequential basis despite much higher contribution of ice cream sales. What impacted the margins here, and how did the channel mix have an impact on this? The second question would be, you're saying that shipping costs and material costs likely to come through going forward on margins. I'm just wondering, looking at the current market environment, seems it's more favorable in terms of pricing and lower promotion activities.

Speaker #4: I'm looking at it from a sequential point of view—so, quarter on quarter. I'm just wondering, why is that? If you remove the reversal and the inventory provision, the margin was flat on a sequential basis, despite a much higher contribution from ice cream sales.

Speaker #4: What impacted the margins here? And how did the channel mix have an impact on this? And the second question would be, you're saying that shipping costs and material costs, likely to come through going forward on margins.

Speaker #4: I'm just wondering, looking at the current market environment, seems it's more favorable in terms of pricing and lower promotion activities. Don't you expect this to have a positive impact on margins?

Sultan Al Shalan: Don't you expect this to have a positive impact on margins? Would it offset the pressure on the margins overall, or you think it still will be under pressure going forward?

[Analyst 1]: Don't you expect this to have a positive impact on margins? Would it offset the pressure on the margins overall, or you think it still will be under pressure going forward?

Speaker #4: And would it offset the pressure on the margins overall? Or do you think they will still be under pressure going forward?

Speaker #3: Okay. Thanks, Sultan. So look, I think there was a bit in there. And we'll give it a go. And do answer pose any follow-up questions if we haven't covered everything off.

Glen Kelly: Okay. Thanks, Sultan. Look, I think there was a bit in there, and we'll give it a go and do pose any follow-up questions if we haven't covered everything off. If I start with channel perspective, I think that the broader dynamic in the Kingdom is obviously a trend towards modern trade, and we're no different to our competitors in relation to that. Modern trade does represent a more expensive channel to traditional trade or to discounters. As the Kingdom gradually shifts to that channel, we will, over time, absolutely see a reduction in margin from increased cost to serve or to compete in that channel. We will continuously see that within our margins, but that will be gradual over time. There's been no significant shifts in terms of channel performance.

Speaker #3: If I start with channel perspective, I think that the broader dynamic in the kingdom is obviously a trend towards modern trade. And we're no different to our competitors in relation to that.

Speaker #3: And modern trade does represent a more expensive channel compared to traditional trade or to discounters. So, as the Kingdom gradually shifts to that new channel, we will, over time, absolutely see a reduction in margin from increased cost to serve or to compete in that channel.

Speaker #3: So we will continuously see that within our margins. But that will be gradual over time. There's been no significant shifts in terms of channel performance.

Speaker #3: I shared with you some of the key growth channels for us. Which were delivering exceptional growth. But again, our big three is modern trade, traditional trade, and discounters.

Glen Kelly: I shared with you some of the key growth channels for us, which were delivering exceptional growth. Again, our big three is modern trade, traditional trade, and discounters. Although really positive news in those smaller channels, they're off a relatively small base. In terms of ice cream, obviously, Q3 is the big one for us. Peak of summer, back to school, that's really when the ice cream category comes into fore. We have seen new entrants over the past year or so in terms of the ice cream category, so there is some additional competition in that space. Again, we have shown marginal growth in our MAT position for the year. One of the things I would like to highlight, again, I shared with you the exceptional performance of our sandwich SKU or family of SKUs.

Speaker #3: So although really positive news in those smaller channels, they're off a relatively small base. In terms of ice cream, obviously, Q3 is the big one for us.

Speaker #3: Peak of summer, back to school—these are really when the ice cream category comes into force. We have seen new entrants over the past year or so in terms of the ice cream category.

Speaker #3: So there is some additional competition in that space. But again, we have shown marginal growth in our MAT position for the year. One of the things I would like to highlight, again, I shared with you the exceptional performance of our sandwich.

Speaker #3: SKU or family of SKUs. We've done a new innovation NPD in sandwich in this quarter, which is in the presentation, which is the multipack.

Glen Kelly: We've done a new innovation NPD in sandwich in this quarter, which is in the presentation, which is the multi-pack. What's also coming through as well is we invested in a new recipe change in that in 2026, which resulted in an increase in COGS. We believe that investment in a superior recipe has really resulted in a superior product, a superior offering, which has resulted in some margin deterioration, but it is rewarding us in volume and share growth, which we're really pleased with. I think your last question was in relation to promotional activity. I think in correlation with the regional conflict, we have seen a significant downturn in the levels of promotional intensity from our competitors. As you know, in 2025, we reversed a price increase.

Speaker #3: But what's also coming through as well is we invested in a new recipe change in that in 2026, which resulted in an increase in COGS.

Speaker #3: But we believe that investment in a superior recipe has resulted in a superior product, a superior offering. Which has resulted in some margin deterioration.

Speaker #3: But it is rewarding us in volume and share growth, which we're really pleased with. I think your last question was in relation to promotional activity.

Speaker #3: I think in correlation with the regional conflict, we have seen a significant downturn in the levels of promotional intensity from our competitors. As you know, in 2025, we reversed a price increase.

Speaker #3: Our competitors who have a different operational model to ourselves whereby they channel fresh milk into their long life milk products, whereas we use primarily SMP.

Glen Kelly: Our competitors who have a different operational model to ourselves, whereby they channel fresh milk into their long-life milk products, whereas we use primarily SMP. We believe there was excess milk, which led to increased dumping into long-life milk and hence significant and aggressive promotional activity, which we believed was unsustainable. As they have taken a price increase in fresh and as the conflict has prolonged, what we have seen is a reduction in the intensity of promotional activity, and that has helped us realize additional margin for SADAFCO. Sultan, is there anything else to add?

Speaker #3: We believe there was excess milk which led to increased dumping into long life milk. And hence, significant and aggressive promotional activity. Which we believed was unsustainable.

Speaker #3: As they have taken a price increase in fresh, and as the conflict has increased, or has prolonged, what we've seen is a reduction in the intensity of promotional activity.

Speaker #3: And that's helped us realize additional margin for SADAFCO. So, Sultan, is there anything else?

Speaker #2: Yeah. I'd like to add one point, Sultan, on the emerging channels. Now, one of the reasons admins mentioned is the structural change in the channel.

Hana AlZourgi: I would like to add one point, Sultan, on the emerging channels. One of the reasons Glen mentioned is a structural change in the channels. This has impacted our margins. We are also focused to invest on the emerging channels as we see an acceleration growth from those channels. With the convenience lifestyle changing, we need to adapt with that. Those channels at this stage are not as profitable as wholesale and traditional trade. This is also another element which we should consider as well. Especially on out of home, we see a big growth on that for us. We are building a footprint for us at this stage until we are properly there, and then we can maybe recover the margins or improve the margins by then. This is one of the key elements for the impact on gross margin.

Hana Al-zurgi: I would like to add one point, Sultan, on the emerging channels. One of the reasons Glen mentioned is a structural change in the channels. This has impacted our margins. We are also focused to invest on the emerging channels as we see an acceleration growth from those channels. With the convenience lifestyle changing, we need to adapt with that. Those channels at this stage are not as profitable as wholesale and traditional trade. This is also another element which we should consider as well. Especially on out of home, we see a big growth on that for us. We are building a footprint for us at this stage until we are properly there, and then we can maybe recover the margins or improve the margins by then. This is one of the key elements for the impact on gross margin.

Speaker #2: This hasn't acted our margins. And we are also focused to invest on the emerging channels. As we see an acceleration growth from those channels.

Speaker #2: And with the change in convenience and lifestyle, we need to adapt to that. Those channels at this stage are not as profitable as wholesale and traditional trade.

Speaker #2: So this is also another element which we should consider as well. Especially on out-of-home we see a big room on that growth for us.

Speaker #2: So, we are building the footprint for us at this stage, until we are properly there, and then we can maybe recover the margins or improve the margins.

Speaker #2: By then, this is one of the key elements for the impact on gross margin.

Speaker #3: Does that cover all your questions, Sultan?

Glen Kelly: Does that cover all your questions, Sultan?

Speaker #4: Yeah. There's one thing that I'm still not clear on, which is I understand probably the margins of the ice cream segment has been lowered.

Sultan Al Shalan: There is one thing that I am still not clear on, which is I understand probably the margins of the ice cream segment has been lowered, but the margins are usually much higher than the rest. I am just wondering why we are not seeing any positive contribution to margins on a Q on Q basis where sales of ice cream went up by more than SAR 100 million. Is it that the ice cream segment margin went down significantly, or is there other parts of this that is impacting margins or somewhere else?

[Analyst 1]: There is one thing that I am still not clear on, which is I understand probably the margins of the ice cream segment has been lowered, but the margins are usually much higher than the rest. I am just wondering why we are not seeing any positive contribution to margins on a Q on Q basis where sales of ice cream went up by more than SAR 100 million. Is it that the ice cream segment margin went down significantly, or is there other parts of this that is impacting margins or somewhere else?

Speaker #4: But the margins are usually much higher than the rest. I'm just wondering why we're not seeing any positive contribution to margins on a Q on Q basis where sales of ice cream went up by more than 100 million.

Speaker #4: Is it that the ice cream segment margin went down significantly? Or is there other parts of this that's impacting the margins or somewhere else?

Hana AlZourgi: Sultan, our ice cream segment has improved the margin, but there are other portfolio elements that we should take into consideration. The UHT milk, the increase in raw material, and the war impact. Those elements have offset this, whatever the margins that have been gained from the ice cream growth. Also, the decline in the commerce sales is another element. We can't just look at ice cream impact and forget or neglect other factors. There are other factors that have impacted our margins like the rest of our companies.

Hana Al-zurgi: Sultan, our ice cream segment has improved the margin, but there are other portfolio elements that we should take into consideration. The UHT milk, the increase in raw material, and the war impact. Those elements have offset this, whatever the margins that have been gained from the ice cream growth. Also, the decline in the commerce sales is another element. We can't just look at ice cream impact and forget or neglect other factors. There are other factors that have impacted our margins like the rest of our companies.

Speaker #2: Sultan, our ice cream segment has improved the margin. But there are other portfolio elements of that we should take into consideration. The UHT milk, the increase in raw material, and the warm impact.

Speaker #2: Those elements have affected whatever margins have been gained from the ice cream growth. Also, the decline in home sales is another element.

Speaker #2: So, it's not only that we cannot just look at the ice cream impact and forget or neglect other factors. There are other factors that have impacted our margins.

Speaker #2: Like the rest of companies.

Sultan Al Shalan: Just one last question. Within e-commerce, where does the sales go to? Is it basically the e-commerce of your retailers, aggregators, and so on?

[Analyst 1]: Just one last question. Within e-commerce, where does the sales go to? Is it basically the e-commerce of your retailers, aggregators, and so on?

Speaker #4: Just one last question. Within e-commerce, where do the sales go through? Is it basically the e-commerce of your retailers, aggregators, and so on?

Speaker #3: Yeah. Sultan, it's a combination. So some of them we go direct to the provider. So for instance, like the likes of Ninja, where we've got quite a bit of our portfolio listed.

Glen Kelly: Yeah. Sultan, it's a combination. Some of them we go direct to the provider. For instance, the likes of Nana, where we've got quite a bit of our portfolio listed. We're seeing exceptional growth via leading customer such as Nana, and we also go to some aggregators as well.

Speaker #3: So we're seeing exceptional growth via like a leading customer such as Ninja. And we also go to some aggregators as well.

Speaker #4: There's the thank you so much.

Sultan Al Shalan: Thank you so much.

[Analyst 1]: Thank you so much.

Speaker #3: Thanks, Sultan.

Glen Kelly: Thanks, Sultan.

Speaker #1: Thank you. We'll take the next question from Alawi. Al-Emira. Alawi, please go ahead.

Nada Amin [Director: Thank you. We'll take the next question from Alawi Alimiha. Alawi, please go ahead.

Nada Amin: Thank you. We'll take the next question from Alawi Alimiha. Alawi, please go ahead.

Speaker #5: We're at the call and for representation. I have two questions. First, have you seen your competitors increase in prices on the long life category?

Alawi Alimiha: For the call and for the presentation, I have two questions. First, have you seen your competitors increasing prices on the long life category? Related to that, in this environment, I assume that you are better positioned, given the regional conflict supply chain sector than your fresh milk produce competitors. Is that a fair assessment? That's my first question. The second question, just a follow-up on the previous answer. Are the margins for the aggregators, through the aggregator channels, higher or lower than modern trade?

[Analyst 2]: For the call and for the presentation, I have two questions. First, have you seen your competitors increasing prices on the long life category? Related to that, in this environment, I assume that you are better positioned, given the regional conflict supply chain sector than your fresh milk produce competitors. Is that a fair assessment? That's my first question. The second question, just a follow-up on the previous answer. Are the margins for the aggregators, through the aggregator channels, higher or lower than modern trade?

Speaker #5: And related to that, in this environment, I assume that you are in a better position, given the regional conflict, supply chain, et cetera, than your fresh milk produce competitors.

Speaker #5: Is that a fair assessment? So that's my first question. The second question, just a follow-up on the previous answer. Is the or are the margins for the aggregators to the aggregator channels higher or lower than modern trade?

Speaker #3: Good afternoon. I'm really sorry, but I didn't catch either question clearly, to be honest. The only bit I heard was about the price increase by our competitors, so that was solely on fresh.

Glen Kelly: Good afternoon. I'm really sorry, but I didn't catch either question clearly, to be honest. The only bit I heard was the price increase by our competitors. That was solely on fresh. On average, they went from SAR 6 to 7 on a 1 liter or SAR 11 to 12.50, I believe, on a 2-liter or the 2-liter or greater than 1.5-liter SKU. We have not seen a specific price increase, but as I mentioned, there has been a marked reduction in the level of promotional activity from our competitors in long life milk. That's really the only bit of the questions I caught. Could you please repeat those?

Speaker #3: So on average, they went from 6 to 7 reals on a one liter. Or 11 to 12.50, I believe, on a two liter. Or the two liter or greater than 1.5 liter SKU.

Speaker #3: And we have not seen a specific price increase. But as I mentioned, there has been a marked reduction in the level of promotional activity from our competitors in long life milk.

Speaker #3: So that's really the only part of the questions I caught. Could you please repeat those?

Speaker #5: So, in terms of the effectiveness of the long-life reduction promotion, what would you say the reduction promotion was? That's one. And the second thing, in terms of the margins—modern trade versus aggregators.

Alawi Alimiha: In terms of effectively and long life reduction promotion, what would you say the reduction promotion were? That's one. The second thing, in terms of the margins, modern trade versus aggregators, which channel has higher margins?

[Analyst 2]: In terms of effectively and long life reduction promotion, what would you say the reduction promotion were? That's one. The second thing, in terms of the margins, modern trade versus aggregators, which channel has higher margins?

Speaker #5: Which channel has higher margins?

Speaker #2: So, in terms of promotion and intensity, especially with the current geopolitical situation and the conflict, we believe that the intensity will be softening. It has already started softening.

Hana AlZourgi: In terms of promotion and intensity, especially with the current geopolitical situation and the conflict, we believe that the intensity will be softening. It has already started softening, and we see that it will continue on that base to cover whatever impacts and costs that arise from the conflict. In terms of channel, obviously, traditional trade, wholesale are the most profitable channels. Cost of doing business in modern trade is the highest.

Hana Al-zurgi: In terms of promotion and intensity, especially with the current geopolitical situation and the conflict, we believe that the intensity will be softening. It has already started softening, and we see that it will continue on that base to cover whatever impacts and costs that arise from the conflict. In terms of channel, obviously, traditional trade, wholesale are the most profitable channels. Cost of doing business in modern trade is the highest.

Speaker #2: And we see that it will continue on that base. To cover whatever impacts and costs that arise from the conflict, in terms of channel, obviously traditional trade wholesale are the most profitable channels.

Speaker #2: The cost of doing business in modern trade is the highest.

Speaker #5: So aggregators are in between or?

Alawi Alimiha: Aggregators are in between?

[Analyst 2]: Aggregators are in between?

Speaker #3: So, yeah, modern trade is the most expensive in terms of margin. And the aggregators are more attractive, 100%.

Glen Kelly: Yeah, modern trade is the most expensive in terms of margin, and the aggregators is more attractive, 100%.

Speaker #5: Okay, clear. Thank you. Thank you very much.

Alawi Alimiha: Okay. Clear. Thank you. Thank you very much.

[Analyst 2]: Okay. Clear. Thank you. Thank you very much.

Speaker #1: Thank you. We'll take the next question from Sora bin Mansour. Sora, please go ahead.

Nada Amin [Director: Thank you. We'll take the next question from Sara bint Mashour. Sara, please go ahead.

Nada Amin: Thank you. We'll take the next question from Sara bint Mashour. Sara, please go ahead.

Speaker #6: Hi. Am I audible?

Sara bint Mashour Al Saud: Hi. Am I audible?

[Analyst 3]: Hi. Am I audible?

Speaker #1: Yes, go ahead.

Nada Amin [Director: Yes.

Nada Amin: Yes.

Speaker #6: Hi, Hannah. Hi, Glenn. Congratulations on your result, and thank you for that brief in the beginning. I just have two questions from my end.

Sara bint Mashour Al Saud: Hi, Hana. Hi, Glen. Congratulations on your result, and thank you for that brief in the beginning. I just have two questions from my end. The first is just regarding raw materials. Just maybe following the powder index, and as we see, there's a recent spike in key raw materials such as SMP, AMF, cook prices. I understand that you have certain inventory coverage, but could you maybe walk us through that and how the current increases in key raw materials is really affecting you guys? The second question is just regarding the channels. There's a shift towards modern trade in Saudi, as you've mentioned, but what about e-commerce and out of home? Are you predominantly targeting modern trade or as well as emerging channels such as out of home and e-commerce? Thank you.

[Analyst 3]: Hi, Hana. Hi, Glen. Congratulations on your result, and thank you for that brief in the beginning. I just have two questions from my end. The first is just regarding raw materials. Just maybe following the powder index, and as we see, there's a recent spike in key raw materials such as SMP, AMF, cook prices. I understand that you have certain inventory coverage, but could you maybe walk us through that and how the current increases in key raw materials is really affecting you guys? The second question is just regarding the channels. There's a shift towards modern trade in Saudi, as you've mentioned, but what about e-commerce and out of home? Are you predominantly targeting modern trade or as well as emerging channels such as out of home and e-commerce? Thank you.

Speaker #6: The first is just regarding raw materials. So just maybe following the FAO index, and as we see, there's a recent spike in key raw materials such as SMP, AMF, and cook prices. I understand that you have certain inventory coverage.

Speaker #6: But could you maybe walk us through that and how the current increases in key raw materials is really affecting you guys? The second question is just regarding the channels.

Speaker #6: So there's a shift towards modern trade in Saudi, as you've mentioned. But what about e-commerce and out-of-home? So are you predominantly targeting modern trade or as well as emerging channels such as out-of-home and e-commerce?

Speaker #6: Thank you.

Speaker #3: Good afternoon, Sarah. Thanks for the questions. So, if we look at the commodities questions first, the big two for us are SMP and AMF.

Glen Kelly: Yeah. Good afternoon, Sara. Thanks for the questions. If we look at the commodities questions first. The big two for us are SMP and AMF. I think a little bit about what I spoke to earlier is relation to all inputs coming into the Kingdom. You have these additional shipping costs, which is impacting everyone and everything that's coming on the water. If we look at the individual commodities, then absolutely, we've seen a spike in prices, in relation to the conflict. In SMP, there was a significant increase across the end of Q1 and into Q2. If you're looking at estimating what that will impact in terms of us, we can't give that kind of level of guidance. What we can say is obviously we're carrying stock.

Speaker #3: So I think a little bit about what I spoke to earlier is in relation to all inputs coming into the Kingdom. You have these additional shipping costs, which is impacting everyone and everything that's coming on the water.

Speaker #3: If we look at the individual commodities then, absolutely, we've seen a spike in prices in relation to the conflict. In SMP, there was a significant increase across the end of Q1.

Speaker #3: And into Q2, if you're looking at estimating what that will impact in terms of us, we can't give that kind of level of guidance.

Speaker #3: But what we can say is obviously we're carrying stock. A lot of that stock was from times when we could source it at a cheaper level or we'd bought forward at that lower level.

Glen Kelly: A lot of that stock was from times when we could source it at a cheaper level, or we bought forward at that lower level. We are insulated to the extremes of that price increase in the relative short term. We've a number of things that we look at. We have different suppliers, we have different countries, different continents where we can source our product. We look to buy smartly, so we're getting the best outcomes for us. As I mentioned, the Mlekoma business in Poland also has a key role to play, specifically in SMP. That vertical integration supports us in terms of margin preservation. We're not immune. As the prices increase, this will gradually flow through to us directionally, we can't escape that. If we look at cocoa, yes, again, at the start of 2026, there was a decline from some historical highs.

Speaker #3: So we are insulated to the extremes of that price increase in the relative short term. So we've a number of things that we look at.

Speaker #3: We have different suppliers. We have different countries, different continents, where we can source our product. We look to buy smartly. So we're getting the best outcomes for us.

Speaker #3: As I mentioned, the Macoma business in Poland also has a key role to play, specifically in SMP. So, that vertical integration supports us in terms of margin preservation.

Speaker #3: But we're not immune. As prices increase, this will gradually flow through to us directionally, so we can't escape that. If we look at cocoa—yes, again, at the start of 2026, there was a decline from some historical highs.

Speaker #3: But again, that has started to spike up across the end of Q1 and Q2. And obviously, AMF as well—there's a similar trajectory—but that's come down somewhat over the last couple of months.

Glen Kelly: Again, that has started to spike up across the end of Q1 and Q2. Obviously AMF as well, there's a similar trajectory, but that's come down somewhat over the last couple of months, again, in correlation to the cream prices I mentioned for the Mlekoma business. That was your first question, Sara.

Speaker #3: Again, in relation to the cream prices I mentioned for the Macoma business.

Speaker #5: So that was your first question, Sarah. Can you?

Speaker #2: The second question was about the channels and whether we are going to focus on the emerging channels. Yes, we are investing on those channels.

Hana AlZourgi: The second question was about the channels and whether we are going to focus on the emerging channels. Yes, we are investing on those channels. These are called the channels. We believe that there is a big room of growth in those channels. As I've mentioned with the speed of the fast lifestyle we are seeing here and also convenience, people are shifting towards those channels, we have to adapt with those. We see an opportunity of a SAR 1 billion growth, especially on hyper channel and the acceleration trend on the e-commerce. Yes, to answer the question, the management is looking to invest in those channels. There's also a structural change if we look at the shift also from traditional day to modern day. Yes, there will be a shift in the channel dynamics going forward.

Hana Al-zurgi: The second question was about the channels and whether we are going to focus on the emerging channels. Yes, we are investing on those channels. These are called the channels. We believe that there is a big room of growth in those channels. As I've mentioned with the speed of the fast lifestyle we are seeing here and also convenience, people are shifting towards those channels, we have to adapt with those. We see an opportunity of a SAR 1 billion growth, especially on hyper channel and the acceleration trend on the e-commerce. Yes, to answer the question, the management is looking to invest in those channels. There's also a structural change if we look at the shift also from traditional day to modern day. Yes, there will be a shift in the channel dynamics going forward.

Speaker #2: These are called strategic channels. We believe that there is a big room of growth in those channels. And as I've mentioned, with the speed of with the fast lifestyle, we are seeing here the convenience people are shifting towards those channels.

Speaker #2: So, we have to adapt to those. We see an opportunity for $1 billion in growth, especially in the HoReCa channels, and an acceleration trend in e-commerce.

Speaker #2: So yes, to answer the question. The management is looking to invest in those channels. And it's also there's also a structural change if we look at the shift also from traditional trade to modern trade.

Speaker #2: So, yes, there will be a shift in the channel going forward.

Speaker #6: And Hannah, if I may just follow up quickly, because in modern trade, it's more expensive and rebate costs are higher. However, I believe that e-commerce would be more higher margin.

Sara bint Mashour Al Saud: Hana, if I may just follow up quickly, because in modern trade, it's more expensive and rebate costs are higher. However, I believe that e-commerce would be more higher margin. So just generally from my understanding, you're focusing on modern, but why not push that focus into more e-commerce and out of home, specifically following their performance in Q2?

[Analyst 3]: Hana, if I may just follow up quickly, because in modern trade, it's more expensive and rebate costs are higher. However, I believe that e-commerce would be more higher margin. So just generally from my understanding, you're focusing on modern, but why not push that focus into more e-commerce and out of home, specifically following their performance in Q2?

Speaker #6: So just generally from my understanding, you're focusing on modern. But why not push that focus into more e-commerce and out-of-home, specifically following their performance in Q2?

Speaker #2: We do focus on those two. And that is why you are seeing the outstanding results in the growth. However, modern trade represents almost one-third of our business.

Hana AlZourgi: We do focus on those two, that is why you are seeing the outstanding results in the growth. However, the modern trade represents almost one third of our business here. We cannot neglect that. Also modern trade serves the purpose of marketing for us. People, when they go and shop there, you can see our products. It's a room for displaying our products. Having said that, the investment is more towards those reaction channels. It's from scale one, it's different. They are emerging channels gradually growing and we are investing as we grow in those channels.

Hana Al-zurgi: We do focus on those two, that is why you are seeing the outstanding results in the growth. However, the modern trade represents almost one third of our business here. We cannot neglect that. Also modern trade serves the purpose of marketing for us. People, when they go and shop there, you can see our products. It's a room for displaying our products. Having said that, the investment is more towards those reaction channels. It's from scale one, it's different. They are emerging channels gradually growing and we are investing as we grow in those channels.

Speaker #2: We cannot neglect that. Also, modern trade serves the purpose of marketing. For us, people, when they go and shop, they can see our products.

Speaker #2: And it's a room for displaying our products. Having said that, the investment is more towards those emerging channels. But it's from scale one; it's different.

Speaker #2: We they are emerging channels. Gradually growing and we are investing as we grow in those channels.

Speaker #6: That's clear. Thank you.

Sara bint Mashour Al Saud: That's clear. Thank you.

[Analyst 3]: That's clear. Thank you.

Speaker #3: Thanks, Sarah.

Glen Kelly: Thanks, Sara.

Speaker #6: Thank you. We'll take the next question from Osama Khan. Please go ahead, Osama.

Nada Amin [Director: Thank you. We'll take the next question from Osama Khan. Please go ahead, Osama.

Nada Amin: Thank you. We'll take the next question from Osama Khan. Please go ahead, Osama.

Speaker #7: Hi, Glenn and Hannah. And thank you for taking my questions. Thank you to the EFG team as well for holding the session. Just had a few questions so first of all, on the pricing environment, if you could maybe share by category dairy, tomato paste, and ice cream, and share the overall net impact on pricing year-on-year change in pricing for the first half or in particular, if you could talk about it in the second quarter.

Osama Khan: Hi, Glen and Hana. Thank you for taking my questions. Thank you to the EFG team as well for holding this session. Just had a few questions. First of all, on the pricing environment, if you could maybe share by category, dairy, tomato paste, and ice cream, share the overall net impact on year-on-year change in pricing for the H1 or in particular, if you could talk about it in the Q2, if it's possible for you guys to share that, just the percentage change.

[Analyst 4]: Hi, Glen and Hana. Thank you for taking my questions. Thank you to the EFG team as well for holding this session. Just had a few questions. First of all, on the pricing environment, if you could maybe share by category, dairy, tomato paste, and ice cream, share the overall net impact on year-on-year change in pricing for the H1 or in particular, if you could talk about it in the Q2, if it's possible for you guys to share that, just the percentage change.

Speaker #7: If it's possible for you guys to share that. Just the percentage change.

Speaker #3: Yeah. Hi, Osama. So look, I don't want to get into too much detail. In relation to that, but across dairy, we're in in excess of 6% revenue growth.

Glen Kelly: Yeah. Hi, Osama. Look, I don't want to get into too much detail in relation to that. Across dairy, we're in excess of 6% revenue growth. Ice cream in excess of 3% revenue growth. Culinary was slightly down quarter-to-quarter. The rest of our portfolio was in high single digits growth.

Speaker #3: Ice cream in excess of 3% revenue growth. Culinary was slightly down quarter to quarter. And then the rest of our portfolio was in high single-digits growth.

Speaker #7: That's fair. Thank you very much for that. Just an additional question on the margins by your channels—the difference in margins between modern trade and traditional retail as well.

Osama Khan: That's fair. Thank you very much for that. Just an additional question on the margins by your channels, the difference in margins between modern trade and the traditional retail as well. If you could not share the exact margins for each category, if you could just share the difference or the magnitude of the difference that you guys make in these categories in terms of margins. If you could just share some insights and talk a little bit about it.

[Analyst 4]: That's fair. Thank you very much for that. Just an additional question on the margins by your channels, the difference in margins between modern trade and the traditional retail as well. If you could not share the exact margins for each category, if you could just share the difference or the magnitude of the difference that you guys make in these categories in terms of margins. If you could just share some insights and talk a little bit about it.

Speaker #7: If you could not if you could not share the exact margins for each category, if you could just share the difference or the magnitude or the difference that you guys make in these categories in terms of margins, if you could just share some insights and talk a little bit about it.

Speaker #3: Yeah. Okay, Osama. So look, I'll speak generally. So traditional trade is the most profitable channel for sure. That comprises your traditional baguettes, your traditional corner shops.

Glen Kelly: Okay, Osama. Look, I'll speak generally. Traditional trade is the most profitable channel for sure. That comprises your traditional baqalas, your traditional corner shops. There is a cost to serve there as well, so you have to imagine our salesman dropping off whether it's our ice cream route or our ambient route. There is a high cost to serve, I guess, per customer or per invoice. In terms of the discounts or the rebates or the promotional campaigns, that doesn't exist. 100% traditional trade is our most attractive channel. At the other end of the scale is modern trade. Obviously, this is a global dynamic. Obviously, so much volume comes through modern supermarkets, that we have to be present there, we have to compete there. We have to have a presence. We have to be relevant in terms of price.

Speaker #3: There is a cost to serve there as well. So you have to imagine our salesman dropping off whether it's our ice cream route or our ambient route.

Speaker #3: So there is a high cost to serve, I guess, per customer or per invoice. But in terms of the discounts or the rebates or the promotional campaigns that you that doesn't exist.

Speaker #3: So, 100% traditional trade is our most attractive channel. At the other end of the scale is modern trade. And, obviously, this is a global dynamic.

Speaker #3: Obviously, so much volume comes through modern supermarkets that we have to be present there. We have to compete there. We have to have a presence.

Speaker #3: We have to be relevant in terms of price. And that all. Comes with an increased cost to serve. And a cost to compete. But it's a must-win channel that we must be present in.

Glen Kelly: That all comes with an increased cost to serve and a cost to compete. It's a must-win channel that we must be present in. We will continue to do that. We look to partner and collaborate with our partners in modern trade, to make sure we're getting win-win outcomes as best possible. Hana's given a bit more color in relation to our other channels. We've mentioned a third modern, a third traditional, and a third discounter. What's actually worth mentioning is that discounter channel as well, a lot of that serves traditional trade. That's definitely an option for us to leverage that more in the future. You could say it's really two-thirds is linked to the traditional trade and one-third is that modern trade as well. That's some of the broader dynamics within our channel makeup.

Speaker #3: And we will continue to do that. But we look to partner and collaborate with our partners in modern trade. To make sure we're getting win-win outcomes as best possible.

Speaker #3: Hannah's given a bit more color in relation to our other channels. What we've mentioned a third modern and a third traditional and a third discounter.

Speaker #3: What's actually worth mentioning is that discounter channel as well. A lot of that serves traditional trade. So that's definitely an option for us to leverage that more in the future.

Speaker #3: So you could say it's really two-thirds is linked to the traditional trade. And one-third is that modern trade as well. So that's some of the broader dynamics within our channel makeup.

Speaker #3: So hopefully, that gives you some more color what that looks like.

Glen Kelly: Hopefully, that gives you some more color what that looks like.

Speaker #7: Thank you for that. So just one additional question as we see that we're essentially moving away from traditional retail and exploring some of these smaller channels as well.

Osama Khan: Thank you for that. Just one additional question, as we see that we're essentially moving away from traditional retail and exploring some of these smaller channels as well and moving largely towards modern retail. Would it be fair to assume that 2024 margin peak that we saw is actually now behind us, and it would be very difficult to replicate it in the years to come, even if the commodity prices are on the lower end? Or do you see it something which is still achievable in maybe 2 years or in some other timeframe where the commodity prices have actually softened?

[Analyst 4]: Thank you for that. Just one additional question, as we see that we're essentially moving away from traditional retail and exploring some of these smaller channels as well and moving largely towards modern retail. Would it be fair to assume that 2024 margin peak that we saw is actually now behind us, and it would be very difficult to replicate it in the years to come, even if the commodity prices are on the lower end? Or do you see it something which is still achievable in maybe 2 years or in some other timeframe where the commodity prices have actually softened?

Speaker #7: And moving largely towards modern retail, would it be fair to assume that the 2024 margin peak we saw is actually now behind us?

Speaker #7: And it would be very difficult to replicate it in the years to come, even if the commodity prices are on the lower end. Or do you see it something which is still achievable, maybe like two years or in some other timeframe where the commodity prices have actually softened?

Speaker #3: Yeah, Osama. So look, I think our margins even '23, not just '24, were extremely high, extremely attractive. But we haven't lowered our sights in terms of margin.

Glen Kelly: Yeah, Osama. Look, I think our margins, even 2023, not just 2024, were extremely high, extremely attractive. We haven't lowered our sights in terms of margin. We want to be above 30%, and this is what we look at in terms of our product launches, product offerings. We don't want to dilute our margin perspective. Look, a lot has gone through gross margin in Q1, or in H1 rather. We've got input costs increase. As I said, some of that we're immune against, but that did start to creep through. The shipping costs started to creep through. We've got general inflation. We had the fuel price increase on 1 January as well. We've got product mix, we've got seasonality, we've got Ramadan. There's a lot that goes in there. We got the Mlekoma business impact as well.

Speaker #3: We want to be above 30%. And this is what we look at in terms of our product launches, product offerings. We don't want to dilute our margin perspective.

Speaker #3: Look, a lot has gone through gross margin in the first quarter. Or in the first half, rather. We've got input costs increase as I said, some of that we're immune against.

Speaker #3: But that did start to creep through. The shipping costs started to creep through. We've got general inflation. We had the fuel price increase on the 1st of January in there as well.

Speaker #3: We've got product mix. We've got seasonality. We've got Ramadan. So there's a lot that goes in there. And we got the Macomba business impact as well.

Speaker #3: So look, it's too simplistic to just narrow it down to a couple of things. Are we seeing headwinds in terms of margin from channel?

Glen Kelly: Look, it's too simplistic just to narrow it down to a couple of things. Are we seeing headwinds in terms of margin from channel? Yes. Are we seeing headwinds in terms of key commodity prices? Yes. We believe that above north of 30% is what we want to continue to target, and hopefully when tensions in the region reduce and we get a solution, that we can return to normal and our margins improve accordingly.

Speaker #3: Yes. Are we seeing headwinds in terms of key commodity prices? Yes. But we believe that above, north of 30%, is what we want to continue to target.

Speaker #3: And hopefully, when tensions in the region are reduced and we get a solution, that we can return to normal and our margins improve accordingly.

Speaker #7: Thank you very much for that. Just to wrap it up and I'll try to sum up my last question quickly. So just on the geopolitical front, I just want to understand if your raw materials are actually being shipped to you at this point as we see that both Hormuz and Bab-ul-Mandeb have largely been closed down for shipping.

Osama Khan: Thank you very much for that. Just to wrap it up and I'll try to sum up my last question quickly. Just on the geopolitical front, just want to understand if your raw materials are actually being shipped to you at this point, as we see that both Hormuz and Bab el-Mandeb have largely been closed down for shipping. We do have the Suez Canal route. Have you been receiving your shipments in terms of your raw material? Other than that, would like to add a part B to this question as well, just if you could share if there's been any impact on As you're a commodity seller as well when it comes from Mlekoma. If you have seen any impact from El Niño as well? Those would be my question. Thank you very much for your answers.

[Analyst 4]: Thank you very much for that. Just to wrap it up and I'll try to sum up my last question quickly. Just on the geopolitical front, just want to understand if your raw materials are actually being shipped to you at this point, as we see that both Hormuz and Bab el-Mandeb have largely been closed down for shipping. We do have the Suez Canal route. Have you been receiving your shipments in terms of your raw material? Other than that, would like to add a part B to this question as well, just if you could share if there's been any impact on As you're a commodity seller as well when it comes from Mlekoma. If you have seen any impact from El Niño as well? Those would be my question. Thank you very much for your answers.

Speaker #7: We do have the Suez Canal route, but I have you been receiving your shipments in terms of your raw material and other than that, I would like to add part B to this question as well.

Speaker #7: Just if you could share if there's been any impact on as you're a commodity seller as well when it comes from Lacoma. So if you have seen any impact from El Niño as well, those would be my question.

Speaker #7: And thank you very much for your answers.

Speaker #3: Yeah, Osama. So look, I'll just take the first one. So yes, there has been disruptions coming into the Kingdom, absolutely. So the Straits of Hormuz, we used to receive some form of product via there.

Glen Kelly: Yeah, Osama. Look, I'll just take the first one. Yes, there has been disruptions coming into the kingdom. Absolutely. The Straits of Hormuz, we used to receive some form of product via there, and that's had to be rerouted. Now that Bab el-Mandeb is also effectively closed, we're having to reroute. When you're talking about product potentially out of New Zealand or out of Australia, we are seeing longer lead times in terms of products coming into the kingdom. We have seen some challenges in terms of the Red Sea, but Suez is still open. We have a number of ports along the Red Sea that we can dock at, whether that's KAEC or Yanbu or Jeddah. We are blessed with options there. We continue to monitor this regularly to make sure that we continue to supply.

Speaker #3: And that's had to be rerouted. And now that Bab-ul-Mandeb is also effectively closed, we're having to reroute. So when you're talking about product potentially out of New Zealand or out of Australia, so we are seeing longer lead times in terms of product coming into the Kingdom.

Speaker #3: We have seen some challenges in terms of the Red Sea, but Suez is still open. We have a number of ports along the Red Sea that we can dock at, whether that's KAEK or Yanbu or Jeddah.

Speaker #3: So, we are blessed with options there. We continue to monitor this regularly to make sure that we continue to supply. But, as with all companies in the region, we have higher stock levels than probably other countries.

Glen Kelly: As with all companies in the region, we have higher stock levels than probably other countries. We're in no way a just in time operator. We know we've got to have a certain level of safety stock, and we're comfortable with where we are at the moment, and we're continuing to seek to build upon that.

Speaker #3: We're in no way adjusting time operator. We know we've got to have a certain level of safety stock. And we're comfortable with where we are at the moment.

Speaker #3: And we're continuing to seek to build upon that.

Speaker #7: Thank you very much for your answers.

Speaker #3: Thanks, Osama.

Osama Khan: Thank you very much for your answers.

[Analyst 4]: Thank you very much for your answers.

Glen Kelly: Thanks, Osama.

Speaker #1: Thank you. We'll take Youssef, the next question from Youssef Abdelmati. Youssef. Go ahead.

Nada Amin [Director: Thank you. We'll take the next question from Yousuf Abdelmoti. Yousuf, go ahead.

Nada Amin: Thank you. We'll take the next question from Yousuf Abdelmoti. Yousuf, go ahead.

Speaker #6: Hello. Thank you for taking my question. I have one question regarding the margin excluding Lacoma. You mentioned in the commentary that you attached in Tadawul that the margin excluding Lacoma came as 33.1%.

Yousuf Abdelmoti: Hello. Thank you for taking my question. I have one question regarding the margin excluding Mlekoma. You mentioned in the commentary that you attached in Tadawul that the margin excluding Mlekoma came as 33.1%. Can you share with us the same comparative figure during the last year? Thank you.

[Analyst 5]: Hello. Thank you for taking my question. I have one question regarding the margin excluding Mlekoma. You mentioned in the commentary that you attached in Tadawul that the margin excluding Mlekoma came as 33.1%. Can you share with us the same comparative figure during the last year? Thank you.

Speaker #6: Can you share with us the same comparative figure during last year? Thank you.

Speaker #3: Youssef, I don't have that off the top of my—off the top of my fingers. But within the segment, within the geographical analysis on the financial accounts, we do spit out the Polish business.

Glen Kelly: Yousuf, I don't have that off the top of my fingers. Within the geographical analysis on the financial accounts, we do spit out the Polish business, so you can see specifically the revenue attributed to Poland. As I said, I don't have that at the top of my fingertips. If you can't get that, just contact us afterwards. We're happy to provide it.

Speaker #3: So you can see specifically the revenue attributed to Poland. And as I said, I don't have that off the top of my at the top of my fingertips.

Speaker #3: If you can't get that, just contact us afterwards. We're happy to provide it.

Speaker #6: Sure, thank you. One question, if I may: how many days of key raw materials do you typically have on hand—for safety stock, I mean?

Yousuf Abdelmoti: Sure. Thank you. One question, if I may. How many days of key raw materials do you have on hand typically for safety stock?

[Analyst 5]: Sure. Thank you. One question, if I may. How many days of key raw materials do you have on hand typically for safety stock?

Speaker #2: Sorry, we don't normally disclose that. Having said that, we have sufficient stock in hand that can cover our short-to-mid-term productions.

Hana AlZourgi: Sorry, we don't normally disclose that. Having said that, we have sufficient stock in hand that can cover our need, so to meet the term production.

Hana Al-zurgi: Sorry, we don't normally disclose that. Having said that, we have sufficient stock in hand that can cover our need, so to meet the term production.

Speaker #6: Can we assume four to six months? Is it?

Yousuf Abdelmoti: Can we assume four to six months? Is it safe?

[Analyst 5]: Can we assume four to six months? Is it safe?

Speaker #3: Yeah. It depends on what product category you're looking at. And we don't disclose exactly. I think you can look at the balance sheet and you can see that the inventory level hasn't moved too significantly versus prior periods.

Glen Kelly: Yeah. It depends on what product category you're looking at, we don't disclose exactly. I think you can look at the balance sheet, and you can see that the inventory level hasn't moved too significantly versus prior periods. We are looking to increase our cover as well over the coming months and quarters.

Speaker #3: And we are looking to increase our cover as well over the coming months and quarters.

Speaker #6: If I thank you. Sorry, but if you can share with us, SMB in particular?

Yousuf Abdelmoti: If I may. Thank you. Sorry, if you can share with us SMP in particular.

[Analyst 5]: If I may. Thank you. Sorry, if you can share with us SMP in particular.

Speaker #3: Yeah, sorry, we can't do that. Again, SMP is one of our top key items. As I said, we do have that arrangement with Macoma, so we can source directly from there.

Glen Kelly: Yeah. Sorry, we can't do that. Again, SMP is one of our top key items. As I said, we do have that arrangement with Mlekoma that we can source directly from there. We have a number of producers in different continents. Yeah, we're really comfortable with where we are, and again, looking to increase cover over the coming months. Thanks, Yousuf.

Speaker #3: And we have a number of producers in different continents. So yeah, we're really comfortable with where we are. And again, looking to increase cover of the coming months.

Speaker #3: Thanks, Youssef.

Speaker #6: Thank you.

Yousuf Abdelmoti: Thank you. That's very clear.

[Analyst 5]: Thank you. That's very clear.

Speaker #1: Thank you. We have a question from Faisal Al-Sulaiman in the chat box. He asks if commodity prices are higher, why are Lacoma sales lower during the quarter?

Nada Amin [Director: Thank you. We have a question from Faisal Al-Suleiman in the chat box. He asks, if commodity prices are higher, why are Mlekoma sales lower during the quarter?

Nada Amin: Thank you. We have a question from Faisal Al-Suleiman in the chat box. He asks, if commodity prices are higher, why are Mlekoma sales lower during the quarter?

Speaker #2: Good question. See, the portfolio of Lacoma is not only SMP. Of powder. They have liquid and powder. So as we mentioned, the prices of liquid and cream went down.

Hana AlZourgi: Good question. See, the portfolio of Mlekoma is not only SMP or powder. They have liquids and solids. As we mentioned, the prices of liquids and cream went down, and also the volume went down. The management has strategically decided to allocate those materials into SMP so that the major impact came from the highest contribution SKUs, let's call them, which represent cream. SMP prices went up, but they don't represent the whole portfolio of Mlekoma business. The reason for the decline is purely coming from cream and milk. That's what the cream price went up. Margins have improved in oil. However, the overall sales strategically and deliberately has been decided to go with the lower volume of oil sales to improve the margins. I hope that is clear.

Hana Al-zurgi: Good question. See, the portfolio of Mlekoma is not only SMP or powder. They have liquids and solids. As we mentioned, the prices of liquids and cream went down, and also the volume went down. The management has strategically decided to allocate those materials into SMP so that the major impact came from the highest contribution SKUs, let's call them, which represent cream. SMP prices went up, but they don't represent the whole portfolio of Mlekoma business. The reason for the decline is purely coming from cream and milk. That's what the cream price went up. Margins have improved in oil. However, the overall sales strategically and deliberately has been decided to go with the lower volume of oil sales to improve the margins. I hope that is clear.

Speaker #2: And also the volume went down. So the management has strategically decided to allocate those materials into SMP. So the major impact came from the higher contribution SKUs let's call them, which liquid and cream.

Speaker #2: SMP prices went up, but they don't represent the whole portfolio of Lacoma. So the reason for the decline is purely coming from cream and liquid.

Speaker #2: Not from SMP. SMP price went up. Margins have improved in Poland. However, the overall sales strategically and deliberately has been decided to go with the lower volume of segment to improve the margins.

Speaker #2: I hope that is clear.

Speaker #1: Yes. That's very clear. And we currently have no more questions or raised hands. So I'll give it back to you, Hannah. Glenn, for any concluding remarks.

Nada Amin [Director: Yes, that's very clear. We currently have no more questions or raised hands, so I'll give it back to you, Hana, Glen, for any concluding remarks.

Nada Amin: Yes, that's very clear. We currently have no more questions or raised hands, so I'll give it back to you, Hana, Glen, for any concluding remarks.

Speaker #5: Great. Yeah. Look, I think the hour is pretty much up. We just want to thank EFG Homes, Hannah, to yourself for hosting the call.

Glen Kelly: Great. Yeah, look, I think the hour is pretty much up. We just want to thank EFG Hermes, Hana, to yourself for hosting the call. We really appreciate it, and to everyone who joined the call today, nice to meet and talk to you all. Please contact us if there's any further questions or any follow-ups. We'll be happy to answer the questions and have a wonderful Tuesday.

Speaker #5: We really appreciate it. And to everyone who joined the call today, nice to meet and talk to you all. Please contact us if there's any further questions or any follow-ups.

Speaker #5: We'll be happy to answer the questions. And have a wonderful Tuesday.

Speaker #1: Thank you. Thank you so much for your insights, Glenn and Hannah. This concludes today's call. Thank you so much for your participation. You can now disconnect.

Nada Amin [Director: Thank you. Thank you so much for your insights, Glen and Hana. This concludes today's call. Thank you so much for your participation. You can now disconnect.

Nada Amin: Thank you. Thank you so much for your insights, Glen and Hana. This concludes today's call. Thank you so much for your participation. You can now disconnect.

Hana AlZourgi: Thank you, Nada. Thank you, all. Thank you.

Hana Al-zurgi: Thank you, Nada. Thank you, all. Thank you.

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Q2 2026 Saudia Dairy & Foodstuff Company Earnings Call

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