11 Nov 2020 13:29
Domty achieves a quarterly earnings of EGP 41.3 million, with an improvement in the bakery profit margin
_____Highlights of 3Q20_____
|
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 EldinInvestor Relations and Corporate Affairs DirectorT: +202- 010 - 0555 2235| ahmed.mohy@domty.org