Source - RNS
RNS Number : 1362L
Arabian Food Ind. Co. Domty S.A.E.
17 April 2018
 

Domty profitability continues and is approaching its historic levels as a result of sales volume increase

 

 

_____Highlights of 1Q18_____

Unaudited

Revenues
EGP 592 mn

Gross Profit
EGP 141.6 mn

Gross Profit Margin
23.92%

Operating Profit
EGP 76.6 mn

Net Income
EGP 40.5 mn

Net Income Margin
6.84%

 

 

 

 

UNAUDITED HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:

(Numbers in EGP million):

 

Description

1Q2018

4Q2017

3Q2017

2Q2017

1Q2017

Net Sales

591.9

615

680

487

471

Gross profit

141.6

137.4

132

95

87

Gross Profit Margin

23.92%

22.35%

19.48%

19.58%

18.52%

EBIT

76.6

65.3

55

39

4

EBIT Margin

12.94%

10.62%

8.11%

7.95%

0.93%

Net Profit Before Tax

52.4

40.1

30

15

- 5

Profit Margin Before Tax

8.86%

6.52%

4.45%

3.12%

-1.05%

Net Profit

40.5

33

22

12

- 6

Net Profit Margin

6.84%

4.97%

3.30%

2.47%

-1.27%

EBITDA

91.5

80

69

51

19

EBITDA Margin

15.46%

13.01%

10.18%

10.49%

4.08%

 

 

Cairo, 17 April 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 1Q2018.

Domty continued to develop its profitability rates better than planned in 1Q2018, close to achieving the same figures of 2015, The sales revenues  amounted to EGP 592 million, an increase of 25% compared to  1Q2017, while the net income amounted to EGP  40.5 million compared to a net loss of  EGP 6 million in 1Q2017.

 

Commenting on the quarter's performance, Domty Vice Chairman Mr. Mohamed Omar El Damaty said: "A successful start for 2018, what was achieved in the first quarter exceeded the company's plan, we worked on all levels. The sales revenue is developing and most importantly driven by increase in quantity sold and not only value, We approached the rates of the first quarter of 2016 (Pre-flotation) ,the drop rates in volume compared to 1Q2016  ranged from 7% in cheese and 9% in juice.

 

The gross profit margin was increased to approximately 24%, higher than the fourth quarter of 2017, Driven by the decline in prices of raw materials globally, which is what we expect to continue for the rest of the year.

 

Overall, the SG&A expenses were controlled without compromising the company's competencies and capabilities, but only to meet the very low expenses of our main competitor.

 

The cut in interest rates also helped to improve profits, which will show a full impact in the second quarter of 2018, sales of the Domty Plus product continued to grow, giving a positive indication of the company's sales mix, with the decline of the low tier brands.

 

Regarding the market share, we see a growth in the distribution ratios, which we expect to be reflected in an increase in our market share.

 

As for juice business, the sales volumes have nearly reached 2016 volumes and we hope to improve more in the second quarter.

 

On the export side, the growth rates have also continued thanks to the entry of new markets for juices and the development of sales of white cheese.

 

As for the average collection period from customers, there has been a noticeable development in the number of days of the local market, while the long collection cycle of government agencies continued, due to the low interest rate ( after the interest cut); the government sector profitability has increased.

 

Regarding the bakery business, a new sales manager with more than 11 years of experience in the field of baked goods was hired to ensure the efficient distribution of the product and to inject new blood into the structure of the company to improve its performance. The actual production of the bakery will begin after the month of Ramadan.

 

Working on sales efficiency there is good news as we have completed 50% of the handheld introduction with the sales team to ensure better efficiency, productivity and more control of the sales department.

 

Going forward, we will continue to develop our profitability and increase sales volumes and to reach a 9% net profit margin in the fastest way possible.

 

As planned, the company recovered its sales volumes very quickly compared to the rest of the categories that shows the importance of the white cheese category to the Egyptian consumer.

 

We hope that the interest rate cut continues and that we can successfully launch our new products/initiatives to ensure quick achievement of our targets.

 

 

 

 

Sales revenue breakdown for 1Q2018:

(Unaudited figures)

 

Segment

1Q2018

1Q2017

White cheese



Total Volumes Sold (k tons)

24.09

21.09

Revenues (EGP mn)

483.34

388.40

Mozzarella



Total Volumes Sold (k tons)

0.62

0.46

Revenues (EGP mn)

35.88

26.40

Spreadable



Total Volumes Sold (k tons)

0.10

0.09

Revenues (EGP mn)

5.35

4.60

By- Product



Total Volumes Sold (k tons)

0.07

0.08

Revenues (EGP mn)

2.61

0.52

Juice



Total Volumes Sold (k tons)

8.29

7.03

Revenues (EGP mn)

64.69

51.40

Total Revenues (EGP mn)

591.9

471.3


 

 

 

 

 

 

Days on Hand (average collection period splitting):

(Unaudited figures)

 

Accounts receivables class

Customer balance on 31-3-2018 (EGP mn)

Number of days(average)

Governmental agencies & Exports*

342

181

Agents( fully supervised by Domty)

103

30

Remaining local customers

147

30

 Total  Accounts Receivables

592

90

 

* The ministry of supply paid EGP 30 million on April 1,2018.

 

*****

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 Eldin
Investor Relations and Corporate Affairs Director
T: +202- 010 - 0555 2235| [email protected]



 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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