1 Apr 2019 07:00
Domty achieved a net profit of EGP 154.6 million for the year 2018 with a year on year growth of 151 % and a clear success of the bakery segment
_____Highlights of 4Q18_____
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HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:
(Numbers in EGP million):
Description | 4Q2018 before agents sales returns | 4Q2018 Final | 3Q2018 | 2Q2018 | 1Q2018 | 4Q2017 |
Net Sales | 669.0 | 613.4 | 691.2 | 693.4 | 591.9 | 615 |
Gross profit | 161.8 | 150.6 | 161.7 | 174 | 141.6 | 137.4 |
Gross Profit Margin | 24.19% | 24.55% | 23.39% | 25.09% | 23.92% | 22.35% |
EBIT | 68.4 | 56.3 | 73.3 | 96.6 | 76.6 | 65.3 |
EBIT Margin | 10.22% | 9.17% | 10.06% | 13.94% | 12.94% | 10.62% |
Net Profit Before Tax | 42.9 | 30.8 | 45.1 | 74.1 | 52.4 | 40.1 |
Profit Margin Before Tax | 6.41% | 5.02% | 6.52% | 10.69% | 8.86% | 6.52% |
Net Profit | 34.6 | 21.8 | 34.7 | 57.7 | 40.5 | 33 |
Net Profit Margin | 5.17% | 3.55% | 5.03% | 8.32% | 6.84% | 4.97% |
EBITDA | 83.5 | 71.3 | 87.3 | 111.2 | 91.5 | 80 |
EBITDA Margin | 12.48% | 11.63% | 12.64% | 16.04% | 15.46% | 13.01% |
Cairo, 28 March 2019
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 4Q2018.
Domty achieved a net profit of EGP 21.8 million in 4Q2018, after achieving sales of EGP 613.4 million, The net income for the year 2018 reached EGP 154.6 million compared to a net income of EGP 61.5 million for the year 2017.
Commenting on the 4rd quarter's performance, Domty Vice Chairman Mr. Mohamed Omar El Damaty said:" In general 2018 was one of the best years of the company, we achieved the same sales levels in the white cheese category as those that were achieved prior to the floatation, as for the juice category sales we almost reached the same sales levels prior to the flotation. Hence we increased our market share of the white cheese despite the fierce competition.
The success of the Domty Sandwich, the company's first product in the bakery segment, has had a positive impact on the future of the company going forward and its ability to achieve sustainable growth rates by successfully penetrating the bakery / snacks category, which was the main concern/focus of the management in the past period and going forward in order to compensate the predicted saturation consumption in the white cheese segment in the coming years.
In 4Q2018, the company succeeded in achieving a gross profit margin of 24.55%, driven by improved sales mix. The company also succeeded in slightly increasing the net margin (before accounting for the sales returns of the agents) & despite the increase in marketing expenses and the increase in the health insurance burden that was a surprise to us by the end of the year.
Due to the company's ambitious plans to develop the commercial sector, the company has decided to phase out a number of agents with a sales turnover of EGP 55 million in the 4Q2018 to further control the distribution network. This will be completed by phasing out another number of agents in the 1Q2019 in line with the direction of the new CEO of the commercial sector.
As for the year 2019, the company believes that the restructuring of the distribution sector must be completed during the first half of the year; hence it may cost the company a temporary decline in sales in white cheese. We believe the situation will begin to stabilize in the second half of 2019 due to the restructuring of the distribution sector & by the increase in capacity of the bakery segment that will take place in the second half of the year.
2018 was the company's turnaround year to reach its highest profits plus it was a foundation year and the base for growth for the years to come,
We believe 2019 will be the year of restructure of the commercial sector and restructuring the company's portfolio to include main stream products such as cheese & juice plus the addition of snacks and baked goods, to become an unprecedented FMCG model in the Egyptian market.
· Sales Revenue breakdown for 4Q2018:
Segment | Revenue (EGP mn) |
White Cheese & Other Cheese | 502.9 |
Juice | 68.2 |
Domty Sandwich | 42.3 |
Total Revenues | 613.4 |
· Consolidated Income Statement
(EGP mn) | 2018 | 2017 |
Net Sales | 2589.9 | 2253.5 |
Cost of Sales | 1962.1- | 1801- |
Gross Profit | 627.8 | 452.5 |
Gross Profit Margin | 24.24% | 20.08% |
Sales & Marketing Expenses | 307- | 289.2- |
General & Administrative Expenses | 41.7- | 37.7- |
Total SG&A | 348.7- | 326.9- |
Other Income (Expenses) | 22.5 | 38.6 |
Impairment of prepaid expenses | - | 0.02- |
Provisions (including reversals) | 1.2 | 0.71- |
Operating Profits | 302.8 | 163.47 |
Operating Profit Margin | 11.69% | 7.25% |
Net Interest Expense | 100.4- | 82.97- |
Health insurance contribution | -3.6 | - |
Net Profit Before Tax | 198.8 | 80.5 |
Income Tax | -44.2 | -19 |
Net Profit | 154.6 | 61.5 |
Net Profit Margin | 5.97% | 2.73% |
To view the complete set of financial statements kindly visit www.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