3Q2019 results

Domty's profits rose 46% in the third quarter, marking the second highest quarterly profit in the company's history

HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:

(Numbers in EGP million):

Cairo, 11 November 2019

Arabian Food Industries Company Domty S.A.E. (DOMT.CA on the Egyptian Exchange), announced today its consolidated results for 3Q2019.

Domty achieved a net profit of EGP 50.7 million in 3Q2019, after achieving sales of EGP 720.2 million,.

Commenting on the 3rd quarter's performance, Domty Vice Chairman Mr. Mohamed Omar El Damaty said:" We are very pleased with what has been achieved in the third quarter on various levels, we succeeded in growing the gross profit margin higher than the planned target and we reached record levels compared to the company's history, due to the increase in sales on various sectors with the exception of the government sector. To further elaborate there is an increase in the bakery segment contribution of total sales as well as the decline in the USD exchange rate that led us to reach a net profit margin of 7 % that is higher than the planned target.

This quarter is the highest in terms of sales and the second highest in terms of net profit of the company's history.

The company benefited from the forex gains and some non-recurring items, we increased the number of distribution vehicles earlier than planned with the same value, to prepare the sales team for the new bakery line that has already started production in the last few days of the 3rd quarter.

Performance improvement also included reducing the number of receivable days in the market by more than 7 days, which is the best rate of improvement in the recent periods, which contributed to a reduction in the financial burden, especially with the cut in interest rates.

Domty CEO - Commercial Affairs, Mr. Ahmed Elkattan added:" We succeeded in achieving the highest quarterly sales value in the history of the company, despite the decline in our sales to the government sector by more than EGP 90 million since the beginning of the year compared to the same period last year, we are currently working on finding other alternatives, whether in the local market or the exports, this is our biggest challenge for the coming period.

On the other hand we are pleased with what we achieved in the other sectors for example; we were able to sell the full capacity of the mozzarella line for the seventh month in a row in addition to achieving more than 50% growth in creamy cheese sales.

As for the juice sector, we were able to raise prices, which led to improve the juice gross margin reaching 21.7% (coming from 16%), and improving the juice market share in Cairo, we now hold the third place in the juice market share in Cairo.

Finally, we continue to implement our technological development plan, where we have completed the application of (sales buzz) program in Cairo and added three governorates in Delta, we will finalize Delta and Alexandria by the end of this year and the rest of Egypt by the end of 1Q2020.

·; Sales Revenue breakdown for 3Q2019:

To view the complete set of financial statements kindly visit www.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 40 export destinations. Learn more about Domty by visiting Domty.org.

Contact

Ahmed Mohy EldinInvestor Relations and Corporate Affairs DirectorT: +202- 010 - 0555 2235| ahmed.mohy@domty.org