Domty's sales grew by 10% year on year, despite the global & local challenges
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_____Highlights of 2Q20_____
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HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:
(Numbers in EGP million):
| Description | 2Q2020 | 1Q2020 | 4Q2019 | 3Q2019 | 2Q2019 |
| Net Sales | 710.9 | 744.8 | 646.9 | 720.2 | 646.8 |
| Gross profit | 167.3 | 183.9 | 173.8 | 191 | 158.4 |
| Gross Profit Margin | 23.54% | 24.69% | 26.87% | 26.53% | 24.49% |
| EBIT | 59.1 | 56.4 | 61.7 | 88.1 | 66.7 |
| EBIT Margin | 8.31% | 7.57% | 9.53% | 12.23% | 10.31% |
| Net Profit Before Tax | 43.5 | 44.5 | 52.6 | 68.5 | 50.9 |
| Profit Margin Before Tax | 6.13% | 5.97% | 8.14% | 9.51% | 7.87% |
| Net Profit | 31.7 | 32.1 | 39.1 | 50.7 | 37.5 |
| Net Profit Margin | 4.46% | 4.31% | 6.05% | 7.04% | 5.80% |
| EBITDA | 76 | 73.2 | 77.2 | 100.5 | 82.5 |
| EBITDA Margin | 10.70% | 9.83% | 11.94% | 13.95% | 12.75% |
Cairo, 10 August 2020
Arabian Food Industries Company Domty S.A.E. (DOMT.CA on the Egyptian Exchange), announced today its consolidated results for 2Q2020.
Domty achieved a net profit of EGP 31.7 million in 2Q2020, after achieving sales of EGP 710.9 million.
Commenting on the 2 nd quarter's performance, Domty CEO for commercial affairs Mr. Ahmed El Kattan said: Domty was able to achieve a sales growth of 10% year on year, despite all the challenges that faced the Egyptian and international market during this critical period.
We are also happy to achieve a sales growth of 12% in the first half of the year, which reflects the strength of the company in implementing the 2020 plans and the determination of the entire team to overcome all the difficulties facing the entire market.
Domty continues to support and develop the sales of the carton packed cheese in the local market, especially the Domty Plus family, which witnessed a growth of more than 35% in the first half of the year versus the first half 2019, hence compensates the decline in the governmental sales channel (ministry of supply), that is witnessing a significant volume decline.
Domty also continues to develop the sales of the fresh cheese segment, especially the mozzarella family, despite the drop in the tourism sales channel during 2Q2020, the team was able to fully utilize the current production capacity during 2Q2020 and we are ready now for injecting more quantities in the market after operating a new mozzarella line in the second half of August.
As for the bakery segment, the company was able to achieve a growth rate of 84% year on year despite the closure of school and universities and curfew imposition during 2Q2020, this reflects the power of the product/brand and its consumer's loyalty to it and the competence of the team that is working together to overcome all challenges to achieve the company's strategic goals.
Despite the decrease in the juice market by more than 20% in 2Q2020, juice sales decreased by only 3% in the second quarter, which reflects the company's ability to deal with market variables in time of crisis.
On the other hand, EL kattan emphasized that the company's management is currently working on implementing a business plan aimed at reducing sales/operating expenses to gradually improve the profit margin during the third and fourth quarters of the current year.
· Sales Revenue breakdown for 2Q2020:
| Segment | Revenue (EGP mn) | Gross Margin By Segment |
| Cheese | 528.1 | 24.31% |
| Juice | 82.3 | 17.5% |
| Bakery | 100.5 | 26.4% |
| Total Revenues | 710.9 | 23.54% |
· Consolidated Income Statement
| (EGP mn) | 2Q2020 | 2Q2019 |
| Net Sales | 710.9 | 646.8 |
| Cost of Sales | 543.6- | 488.4- |
| Gross Profit | 167.3 | 158.4 |
| Gross Profit Margin | 23.54% | 24.49% |
| Sales & Marketing Expenses | 103.1- | 88.1- |
| General & Administrative Expenses | 13.1- | 11- |
| Total SG&A | 116.2- | 99.1- |
| Other Income | 8 | 7.5 |
| Provisions | 0.003- | 0.010- |
| Operating Profits | 59.09 | 66.7 |
| Operating Profit Margin | 8.31% | 10.31% |
| Net Interest Expense | -15.5 | 15.8- |
| Health insurance contribution | -1.9 | -1.7 |
| Net Profit Before Tax | 41.7 | 49.2 |
| Income Tax | -10 | -11.7 |
| Net Profit | 31.7 | 37.5 |
| Net Profit Margin | 4.46% | 5.80% |
For viewing the full set of financials kindly visit domty.org
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About Arabian Food Industries Company Domty S.A.E.
Domty, founded in 1988and headquartered in Egypt, is a leader in the growing Egyptian cheese and juice market. The Company manufactures markets and distributes a range of branded white and processed cheeses and juice products, with a family of nearly 200 SKUs under a brand portfolio including Domty, Damo, Gebnety and Bravo. Domty is a household name and the number-one cheese producer in the nation by market share. The Company sells to tens of thousands of retail and business customers as well as to more than 46 export destinations. Learn more about Domty by visiting Domty.org
Contact
Ahmed Mohy Eldin
Investor Relations and Corporate Affairs Director
T: +202- 010 - 0555 2235| ahmed.mohy@domty.org
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