RNS Number : 0134F
Arabian Food Ind. Co. Domty S.A.E.
11 November 2020
 

Domty achieves a quarterly earnings of EGP 41.3 million, with an improvement in the bakery profit margin

 

_____Highlights of 3Q20_____

Revenues
EGP 724.1 mn

Gross Profit
EGP 179.5 mn

Gross Profit Margin
24.80%

Operating Profit
EGP 69.8 mn

Net Income
EGP 41.3 mn

Net Income Margin
5.70%

 

 

 

HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:

(Numbers in EGP million):

Description

3Q2020

2Q2020

1Q2020

4Q2019

3Q2019

Net Sales

724.1

710.9

744.8

646.9

720.2

Gross profit

179.5

167.3

183.9

173.8

191

Gross Profit Margin

24.80%

23.54%

24.69%

26.87%

26.53%

EBIT

69.8

59.1

56.4

61.7

88.1

EBIT Margin

9.65%

8.31%

7.57%

9.53%

12.23%

Net Profit Before Tax

56.4

43.5

44.5

52.6

68.5

Profit Margin Before Tax

7.79%

6.13%

5.97%

8.14%

9.51%

Net Profit

41.3

31.7

32.1

39.1

50.7

Net Profit Margin

5.7%

4.46%

4.31%

6.05%

7.04%

EBITDA

86.6

76

73.2

77.2

100.5

EBITDA Margin

11.97%

10.70%

9.83%

11.94%

13.95%

 

 

 

 

Cairo, 11 November 2020

Arabian Food Industries Company Domty S.A.E. (DOMT.CA on the Egyptian Exchange), announced today its consolidated results for 3Q2020.

Domty achieved a net profit of EGP 41.3 million in 3Q2020, after achieving sales of EGP 724.1 million.

 

Commenting on the 3 rd quarter's performance, Domty Vice Chairman Mr. Mohamed El Damaty said: The third quarter of the current year ( the Covid 19 year) had many challenges, but the most important thing that can be talked about in this quarter is the company's ability to improve the gross profit margin by 1.3% to reach 24.8% driven by the company's success in improving the GPM of the bakery segment to reach 38%, consequently the company will focus on, in the coming period, and this confirms the fact that  increasing the sales volume of baked goods does not require a decrease in the GPM, which is what we stated before.

 

On the other hand, the company was able to clearly improve the GPM of the juice, which also positively affected the growth of the company's GPM to near 25%, as there was a growth in juice sales on a year on year basis despite the decline in the juice market in general, that led to an increase in Domty market share, especially in Cairo.

 

Regarding the cheese segment, there has been a decline in white cheese sales in an unsatisfactory manner to the company's management , mainly due to a sharp decline in the sales volume to government sector, plus the sales decline in the local market, hence the company will take some corrective measures to increase sales of white cheese starting from the fourth quarter of the current year, the company will work hard to compensate the lost sales of the government sales channel and will also work hard to increase the sales in the local market, whether via retail or wholesale channels, in order to return to normal sales volume.

 

Finally, we expect an increase in bakery sales in 4Q2020, due to the reopening of schools and universities that consequently will lead to an improvement in the company's overall GPM.

 

 

 

 

·    Sales Revenue breakdown for 3Q2020:

 

Segment

Revenue (EGP mn)

Gross Margin By Segment

Cheese

493.5

22.10%

Juice

97.5

22.68%

Bakery

133.1

37.8%

Total  Revenues

724.1

24.80%

 

 

 

 

·    Consolidated Income Statement

 

(EGP mn)

3Q2020

3Q2019

Net Sales

724.1

720.2

Cost of Sales

544.5-

529.1-

Gross Profit

179.5

191.1

Gross Profit Margin

24.80%

26.53%

Sales & Marketing Expenses

104.5-

96.9-

General & Administrative Expenses

12.3-

10.8-

Total SG&A

116.8-

107.7-

Other Income

7.2

4.7

Provisions

0.003-

0.002-

Operating Profits

69.8

88.1

Operating Profit Margin

9.65%

12.23%

Net Interest Expense

-13.5

19.5-

Health insurance contribution

-1.9

-1.9

Net Profit Before Tax

54.4

66.7

Income Tax

-13.1

-16

Net Profit

41.3

50.7

Net Profit Margin

5.70%

7.04%

For viewing the full set of financials kindly visit domty.org

*****

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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