Earning release ( Q2 unaudited results)

Domty achieved record profits in the second quarter with its sales volume approaching the level of 2016 and appointed a Managing Director for commercial affairs

UNAUDITED HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:

(Numbers in EGP million):

Cairo, 17 July 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 unaudited consolidated results for 2Q2018.

Domty achieved a record profit in the second quarter of 2018, after achieving sales of EGP 693.4 million, an increase of 42% over the same quarter last year. Consolidated profits amounted to EGP 57.7 million compared to profits of EGP 12 million for the same period last year. Net profit margin for the second quarter of this year is 8.3%.

Hence a net profit of EGP 98.1 million for the first half of the year compared to EGP 6 million for the first half of 2017.

Commenting on the 2nd quarter's performance, Domty Vice Chairman Mr. Mohamed Omar El Damaty said:"We are pleased with what we achieved in the second quarter on all levels. We achieved sales growth of more than 40% in most of our products compared to the same quarter of the last year. We also reached 2016 sales for the same period in most products. We were able to reach a gross profit margin of more than 25%, as a result of increased sales in the most profitable products of the company while keeping the SG&A expenses controlled.

We have also been able to improve and develop the number of credit days in the market to reach an average collection period of 84 days compared to 90 days in the first quarter of this year.

Continuing our approach in developing the company's organizational structure to be able to lead the company's aggressive growth plans ,The management has decided to appoint Mr. Ahmed Al kattan as the managing director of the commercial sector in the company starting from August 1, 2018 .

Mr. Ahmed Al kattan, has accumulated excellent experience in the field of FMCG who is currently the General Manager of the Commercial Sector at FINE Health Holding Group of Egypt / Jordan / Palestine / Lebanon / Iraq, he also worked for 10 consecutive years in Juhayna Food Industries Company, where he held many positions in the Sales & Trade Marketing sector where the last one was the Deputy General Sales Manager

Finally, in light of the rise in inflation due to the increase in energy prices and the slight rise in the dollar exchange rate, the company moved its prices by 2% to 3% at the beginning of the third quarter in order to develop the gross profit margin in the coming period.

Sales revenue breakdown for 2Q2018:

(Unaudited figures)

- Total sales volume came in at 39.3 thousand tons, 11.3 thousand tons or 40% higher than the same period last year.

Days on Hand (average collection period splitting):

(Unaudited figures)

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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 35 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