Financial and operational highlights

New Domestic Al Fursan Lounge was opened at King Abdulaziz International Airport. The lounge serves Saudia passengers at the new Airport Terminal.

Al Haramein high-speed train catering contract was awarded to SACC, which ensures a number one position in KSA railway catering.

SACC corporate functions were strengthened during the year, especially within Business Development and Strategy.

SACC maintained Platinum level for Saudisation. The number of Saudi female employees increased by almost 20% during the year.

Revenue (SAR)

0 bn
2018 2.04 bn
2017 1.95 bn

Net profit after Zakat and income tax (SAR)

0 m
2018 459.3 m
2017 481.7 m

Earnings Per Share (SAR)

0
2018 5.60
2017 5.87

Payout ratio

0 %
2018 99.1 %
2017 94.5 %
Financial and operational highlights

At a Glance

All our operational divisions performed well in 2018, validating our continued diversification strategy and contributing to impressive financial results. The year was distinguished by significant advances in many areas, notably railways, retail, automation and female employment, as well as consolidation of the company’s leadership in catering for religious pilgrims.

Mission

To excel as a market leader through continual process improvement, innovation, and timely response, in our customers’ best interests.

Values

  • Customer Orientation
  • Commitment to Quality
  • Team Spirit
  • Transparency
  • Sustainability

Key Locations

In-Flight Catering

With over 90% market share, our in-flight catering business serves over 100,000 meals to passengers of over 50 domestic and international airline and railway clients each day throughout Saudi Arabia.

Retail

Our retail business focused on innovation and diversification in 2018, and investing in our ecommerce capabilities through enhanced web and mobile sales platforms along with associated human capital and infrastructure.

Catering and Facilities

Our catering and facilities business expanded its service footprint through 19 new contracts in 2018, covering thirteen new remote sites and six new business and industry sites across the Kingdom.

Hospitality

Our hospitality business continued to expand and diversify with growing operations across modern airport and railway lounges and other venues throughout Saudi Arabia.

Hajj and Umrah

Our market-leading Hajj and Umrah business provided a record 640,000 frozen ready meals to more than 60,000 pilgrims in the holy cities of Makkah and Madinah in just five days over the 2018 Hajj season.

Meals Served 0 m
Business Lounges 0
Total Staff 0
Lounge Guests 0 m
Flights Catered 0 k
Retail Outlets 0
At a Glance (PDF)

Chairman's Statement

Our business is in your journey

On behalf of the Board of Directors, it gives me great pleasure to present the 2018 Annual Report of Saudi Airlines Catering Company.

The past year has not been without its challenges, including those posed by the turbulent economic climate, the effects of which have been accentuated by depressed oil prices. These conditions have led to further cost-cutting in the aviation industry and increasing customer price sensitivity, resulting in a slowdown in in-flight retail growth. Despite these negative headwinds, however, SACC continues to deliver strong performance.

Dr. Yahya Al-Yahya Chairman Chairman's Statement (PDF)

Net Profit (SAR)

459.3m

Earnings Per Share (SAR)

5.60
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CEO's Review

2018 has been a successful and significant year in the evolution of our business into the multi-service partner of choice in the Kingdom, despite ongoing market challenges.

As Saudi Arabia continues to go through a transformation to become a global economic powerhouse, driven by the ambitious Vision 2030, companies are adapting by becoming more strategically efficient to create sustainable and competitive value propositions. These realities were reflected on our day-to-day business through our customers’ demands for more cost-efficient goods and services. We responded by applying strategic efficiency measures that meet our customers’ requirements while maintaining the highest standards of quality and delivering strong bottom line results for our investors.

Wajdy Al-Ghabban Chief Executive Officer CEO's Review (PDF)

Journey of strategic diversification

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Business Model

Financial

  • Capital allocations
  • Assets
  • Cash
  • Debt

Physical

  • Land
  • Infrastructure
  • Equipment
  • Technology

Human

  • Workforce
  • Leadership
  • Procurement

Social and relationship

  • Goverment
  • Partnerships and JV
  • Community
  • Customers
In-Flight catering

Our core in-flight catering business has a long track record of success based on scale, quality, and consistency, working to world-class standards of health and safety in food production.

Retail

Our growing retail business sells thousands of food and non-food products to customers in the air on multiple carriers, on the ground across Saudi Arabia, and through dedicated e-Commerce platforms.

Catering & Facilities

Our catering & facilities business provides a broad range of services to clients in four key sectors business and industry, remote sites, education and healthcare.

Hospitality

Our hospitality business provides hospitality services and BOM (build, operate & manage) operations for airline and non-airline lounges, motels, events and fine dining buffets across Saudi Arabia.

Hajj & Umrah

Our Hajj and Umrah business specialises in creating and distributing safe, high quality meals for the Hajj and Umrah pilgrimage market in the holy cities Makkah and Madinah.

Underpinned by our values
  • Customer Orientation
  • Commitment to Quality
  • Team Spirit
  • Transparency
  • Sustainability

Financial

  • Dividends
  • Return on investment
  • Capital appreciation

Physical

  • Retail shops
  • Lounges
  • Infrastructure

Human

  • Staff training and development
  • Retention
  • Saudisation
  • Employer of choice
  • Performance driven culture

Social and relationship

  • Social responsibility / sustanability
  • Brand trust and equity
  • Trusted partner
Business Model (PDF)
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Our Strategy

Our strategic vision is driving our transformation from a dedicated in-flight caterer into a multi-functional, multi-service enterprise and supporting Saudi Arabia’s Vision 2030 of economic diversification.

Expand existing operations

  • Good organic growth in 2018, especially in In-Flight Catering.
  • Created new job functions and roles.
  • Expanded coffee shops at train stations and on-board catering.
  • Growth in online retail.
  • Successful year catering for Hajj and Umrah with a refocus from B2C to B2B.
  • Continue to grow and expand in train catering.
  • Ensure staff training is at the highest level.
  • Continue to improve quality across the business.
  • Continue to improve quality across the business.
  • Continue to gain market share in Hajj and Umrah.
  • Keep the core business (In-Flight Catering) profitable.
Revenue (SAR) 0 bn

Diversify and enter markets naturally connected to our core expertise

  • Explore regional expansion across selected business lines.
  • 70% revenue from In-flight Catering and 30% from the other divisions.
  • By the end of 2018, In-flight Catering had 92 clients and served over 39.9 million meals on 220,129 flights.
  • Study new catering market segments.
  • Move closer to target of 50% revenue from In-flight Catering and 50% from the other divisions.
Net Profit Margin 0 %

Business Review

In-Flight Catering

Daily in-flight meals

109,000

In-Flight Catering employees

2,500

Saudi nationals

30%

SACC is the leading airline catering and ancillary services provider in Saudi Arabia, providing food and services to over 92 domestic and international airlines through our In-Flight Catering (IFC) division.

SACC supplies over 100,000 meals for 400 departures each day through its specialised units in Dammam, Madinah, Riyadh, Jeddah and Cairo. Our major customers are Saudia, Flynas and Flyadeal, Saudia’s new low-cost carrier.

The IFC division also produces a further 50,000 frozen meals each day at our factory in Riyadh and supplies food to other SACC divisions, including Hospitality, Catering and Facilities, and Hajj and Umrah. We employ around 2,500 staff across our operations, approximately 30% of whom are Saudi nationals.

Business Review (PDF)

Business Review

Retail

SkySales retail outlets

55

Our retail operations began in 1984 with SkySales – the prestigious in-flight retail service of Saudia, the national airline of the Kingdom of Saudi Arabia. In the years since, our retail activities have grown considerably to encompass both food and non-food operations in the air and on the ground, serving multiple carriers and managing our own brands in a range of locations throughout Saudi Arabia.

Today, SACC retail manages in-flight shopping services for five customers, covering every level of retail delivery from exclusive high-end, first class sales to the specialized requirements of budget airlines. As well as Saudia’s SkySales, we manage high-end in-flight sales for Saudia Private Aviation and the Blackline Collection for Saudia AlBayraq, as well as millennial-focused budget ranges of Flynas Mall for Flynas and Eat and Shop for Flyadeal.

Since launching our ground sales operations in 2015, SACC has rapidly expanded its network of strategically placed retail outlets to cover major air and rail transport hubs, trains and education and hospitality venues.

Business Review (PDF)

Business Review

Catering & Facilities

Catering & Facilities employees

700

Consumer satisfaction rate

97%

Our Catering and Facilities division was established in 2008 to diversify the revenue of the company while leveraging its strong food management expertise. Today, the division provides a broad range of services to clients in four key sectors – business and industry (B&I – both public and private), remote sites (mostly in the energy and mining sectors), education and healthcare.

We offer a comprehensive and customisable service mix to suit the individual needs and circumstances of our clients. These services include catering, accommodation management and maintenance, housekeeping and laundry, pantry and vending machines services, landscaping and recreation and transportation.

We believe that by providing bespoke, high quality services to our clients and consumers we can contribute to increasing the engagement of patients, employees or students, thereby ensuring the sustainability and performance of organisations. We also mitigate legal risks by ensuring full compliance with relevant regulations, applying best-in-class quality, health, safety and environmental (QHSE) standards and undertaking highly transparent management through the use of quarterly activity monthly reviews and KPIs, all whilst offering an excellent quality ratio by providing services at competitive prices.

Business Review (PDF)

Business Review

Hospitality

Hospitality employees

800

The SACC Hospitality Management and Services division builds, operates and manages a variety of airline and non-airline lounges, motels, and food and beverage outlets in the Kingdom, working in close collaboration with our other business units and with Saudia. The division also offers event management, facility and aviation detailing, buffet and fine dining, and services for corporate functions.

Founded in 2006 to manage the Alfursan lounges that primarily serve passengers travelling with Saudia, the business today employs around 800 staff, working across its operations in the areas of lodging, ground services, events, retail, hospitality, buildings and general facilities management.

Our build–operate–manage (BOM) business model encompasses every aspect of the hospitality cycle, from creating and running hotels to offering food and beverage retail services in multiple locations including airport terminals, railway stations and onboard trains.

Business Review (PDF)

Business Review

Hajj & Umrah

Meals served in five days during Hajj

640,000

Pilgrims served in five days during Hajj

60,000

SACC specializes in creating and distributing safe, high quality meals for the Hajj and Umrah pilgrimage market in the holy cities Makkah and Madinah. Our Hajj and Umrah services were launched in 2013 and were brought under the remit of an independent division in 2018.

This reflects the considerable strategic growth opportunities of a rapidly expanding Hajj and Umrah market, capitalizing on the commitment of the General Authority of Civil Aviation (GACA) to increase air travel capacity to meet the needs of 30 million Umrah pilgrims by 2030 – one of the primary goals outlined in the Kingdom’s Vision 2030.

The SACC Hajj and Umrah division aims to provide food supply solutions for this market through both its business-to-business (B2B) and business-to-consumer (B2C) activities. We provide safe and nutritious frozen meals to our B2B customers in Makkah, mainly comprising food catering companies, while our B2C stream includes the provision of full catering services to pilgrims, delivered via official establishments, Hajj missions and government entities.

Business Review (PDF)