12 Nov 2018 17:22
Domty's earnings growth reached 54% in Q3, with the increase of a market share in the cheese market, and the successful launch of the Domty cheese sandwich
_____Highlights of 3Q18_____
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HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:
(Numbers in EGP million):
Description | 3Q2018 | 2Q2018 | 1Q2018 | 4Q2017 | 3Q2017 |
Net Sales | 691.2 | 693.4 | 591.9 | 615 | 680 |
Gross profit | 161.7 | 174 | 141.6 | 137.4 | 132 |
Gross Profit Margin | 23.39% | 25.09% | 23.92% | 22.35% | 19.48% |
EBIT | 73.3 | 96.6 | 76.6 | 65.3 | 55 |
EBIT Margin | 10.06% | 13.94% | 12.94% | 10.62% | 8.11% |
Net Profit Before Tax | 45.1 | 74.1 | 52.4 | 40.1 | 30 |
Profit Margin Before Tax | 6.52% | 10.69% | 8.86% | 6.52% | 4.45% |
Net Profit | 34.7 | 57.7 | 40.5 | 33 | 22 |
Net Profit Margin | 5.03% | 8.32% | 6.84% | 4.97% | 3.30% |
EBITDA | 87.3 | 111.2 | 91.5 | 80 | 69 |
EBITDA Margin | 12.64% | 16.04% | 15.46% | 13.01% | 10.18% |
Cairo, 12 November 2018
Arabian Food Industries Company Domty S.A.E. (DOMT.CA on the Egyptian Exchange), Egypt's largest cheese manufacturer by market share, announced today its consolidated results for 3Q2018.
Domty achieved a net profit of EGP 34.7 million in 3Q2018, after achieving sales of EGP 691 million slightly higher than 3Q2017, The net income for the first 9 months of the year reached EGP 132.8 million compared to a net income of EGP 28.4 million for the same period last year.
Commenting on the 3rd quarter's performance, Domty Vice Chairman Mr. Mohamed Omar El Damaty said:"For sure the Company was affected by the increase in energy prices, specifically in July and August, normal sales rates returned starting September, hence 3Q2017 was also exceptionally high in sales volume.
We were able to increase our cheese market share by 2% that entailed an increase in marketing spending.
The highlight of the third quarter was the successful launch of our first introduction of baked goods which is the Domty Sandwich. We reached our maximum capacity production utilization of the line in just 6 weeks, with a net margin of more than 10%, which is higher than the plan. This proves the company's view in investing in the distribution sector infrastructure & manpower and our ability to succeed in other/ new rapid fast growing categories.
Consequently the company has decided to increase the capacity of the bakery line with an investment of approximately USD 500 thousand, the new capacity will be added starting mid 1Q2019.
The increase in raw materials costs, the increase in energy expenses this quarter, the introduction of the Domty sandwich and the desire to increase our cheese market share ,hence higher marketing spending (should go back to normal levels),consequently caused the decline in the profit margin." We believe we will gradually return to our profitability rates".
Sales revenue breakdown for 3Q2018:
Segment | Revenue (EGP mn) |
White Cheese & Other Cheese | 586 |
Juice | 97.1 |
Domty Sandwich | 8.1 |
Total Revenues | 691.2 |
- Total sales volume came in at 38.3 thousand tons (Excluding Domty Sandwich), compared to 39.1 thousand tons achieved in 3Q2017.
- Domty Sandwich started in September 2018.
Days on Hand (average collection period splitting):
Accounts receivables class | Customer balance on 30-9-2018 (EGP mn) | Number of days (average) |
Governmental agencies & Exports | 348 | 169 |
Agents( fully supervised by Domty) | 151 | 30 |
Remaining local customers | 191 | 30 |
Total Accounts Receivables | 690 | 90 |
· Complete financial statements can be downloaded at 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 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