14 Aug 2019 08:00
Domty profits increased by 30% over the first quarter of this year
_____Highlights of 2Q19_____
|
HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:
(Numbers in EGP million):
Description | 2Q2019 | 1Q2019 | 4Q2018
| 3Q2018 | 2Q2018 |
Net Sales | 646.8 | 654.8 | 613.4 | 691.2 | 693.4 |
Gross profit | 158.4 | 160.9 | 150.6 | 161.7 | 174 |
Gross Profit Margin | 24.49% | 24.58% | 24.55% | 23.39% | 25.09% |
EBIT | 66.7 | 58.4 | 56.3 | 73.3 | 96.6 |
EBIT Margin | 10.31% | 8.92% | 9.17% | 10.06% | 13.94% |
Net Profit Before Tax | 50.9 | 39.7 | 30.8 | 45.1 | 74.1 |
Profit Margin Before Tax | 7.87% | 6.06% | 5.02% | 6.52% | 10.69% |
Net Profit | 37.5 | 28.8 | 21.8 | 34.7 | 57.7 |
Net Profit Margin | 5.80% | 4.41% | 3.55% | 5.03% | 8.32% |
EBITDA | 82.5 | 73.9 | 71.3 | 87.3 | 111.2 |
EBITDA Margin | 12.75% | 11.28% | 11.63% | 12.64% | 16.04% |
Cairo, 8 August 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 2Q2019.
Domty achieved a net profit of EGP 37.5 million in 2Q2019, after achieving sales of EGP 646.8 million,.
Commenting on the 2st quarter's performance, Domty CEO - Commercial Affairs, Mr. Ahmed Elkattan said:" The Company started to reap the benefits of the implementation of the structural changes and policy adjustments in local sales, export, logistics & marketing, which led to an increase in the net profit margin by 31% compared to 1Q2019 and by 63% compared to 4Q2018
It is worth mentioning that the company achieved a sales growth in all cheese categories such as carton pack cheese (Tetra Pak), fresh cheese, creamy cheese and mozzarella compared to 2Q2018, with the exception of sales of Tetra Pak cheese to the governmental sector, where the company's sales to this channel decreased by 22% compared to 2Q2018, which has negatively impacted the overall sales growth.
On the other hand, we started to implement a plan to change our juice packaging and started the re-launch, and we are currently preparing to launch 100 % juice (with no added sugar) product under the brand name "Slim", to meet the needs of a large segment of consumers inside and outside Egypt.
On the other hand, the company continues to take successful steps in the bakery segment where the company was able to achieve sales targets in 2Q2019 which represents 91% of sales achieved in 1Q2019 despite the holy month of Ramadan which negatively affect the demand on the baked goods in the local market, due to the seasonality effect.
After Ramadan, the Company was also able to recover and sell 100% of the production capacity immediately and this has continued to date.
With regards to the development of the local sales performance, the company began to use the latest technology to raise the efficiency of operations, where we began to re-apply the system (HAND HELD) in Greater Cairo and that should cover the whole country by the end of 1Q2020, we have selected the latest versions of the operating system as well as activating the GPS in the distribution vehicles as a second step towards the implementation of the Digital Transformation Plan in the distribution sector.
In terms of marketing, we started the year with intensive marketing activities, and then began to reduce marketing expenses gradually , the marketing expenses in 2Q2019 has decreased by 48% compared to 1Q2019, We plan to keep the marketing expenses at low levels during second half of 2019.
Commenting on the results, Mohamed El Damty, Vice Chairman, said: "We are delighted that the net profit margin has been steadily growing since 4Q2018 despite the decline in purchasing power which has been felt by most companies in different business sectors especially FMCG's, plus our structural reforms in the distribution sector befitting the company.
Going forward we see the growth coming from the bakery industry in the years to come which encouraged us to add a new bakery line in the next year to help the company reach sales exceeding EGP 3.5 billion in 2020.
New innovations/ initiatives are also on the table that will be announced after thorough studying, the Egyptian market needs to innovate and add new ideas that help companies to grow and achieve good profits, and any attempts to invest in existing products or spend money to stimulate sales will not achieve the hoped continuous growth rates, which has always made the Egyptian market special.
·; Sales Revenue breakdown for 2Q2019:
Sales Segment | Revenue (EGP mn) |
Cheese Segment | 507.2 |
Juice Segment | 85 |
Bakery Segment | 54.6 |
Total Revenues | 646.8 |
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
DOMT.L (DOMT)