30 Oct 2017 07:00
Domty profitability continues as a result of sales volume recovery
_____Highlights of 3Q17_____ Unaudited
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UNAUDITED HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:
(Numbers in EGP million):
Description | 3Q2017 | 2Q2017 | 1Q2017 | 4Q2016 | 3Q2016 |
Net Sales | 680 | 487 | 471 | 463 | 453 |
Gross profit | 132 | 95 | 87 | 61 | 88 |
Gross Profit Margin | 19.48% | 19.58% | 18.52% | 13.29% | 19.42% |
EBIT | 55 | 39 | 4 | -20 | 21 |
EBIT Margin | 8.11% | 7.95% | 0.93% | -4.35% | 4.70% |
Net Profit Before Tax | 30 | 15 | - 5 | - 39 | 14 |
Profit Margin Before Tax | 4.45% | 3.12% | -1.05% | -8.38% | 3% |
Net Profit | 22 | 12 | - 6 | - 29 | 10 |
Net Profit Margin | 3.30% | 2.47% | -1.27% | -6.33% | 2.21% |
EBITDA | 69 | 51 | 19 | - 4 | 33 |
EBITDA Margin | 10.18% | 10.49% | 4.08% | -0.88% | 7.35% |
Cairo, 28 October 2017
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 3Q2017,
Commenting on the quarter's performance, Domty Vice Chairman Mr. Mohamed Omar El Damaty said: "We are pleased with the recovery in sales volumes as sales started to get back to its normal levels compared to 3Q2016. This reflects the importance of the white cheese product to the Egyptian consumer, which led to a positive impact represented in absorbing the company overheads, which resulted in an improvement in the net income margin, hence avoid the downsizing plans in the current period.
We see it necessary to clarify the nature of Domty debts in the market to assure investors that the vast majority of them are secured debts belonging to government agencies and export agents who have been working with the company for 17 years, as well as some local agents under strict supervision from the company, while the remaining debt has an average collection period of no more than 34 days.
We hope for the future to continue the recovery in sales volume with some appreciation in the EGP against the Dollar and a reverse in the bank interest to be able to improve Domty net profit margin. Accordingly, the company started during the past period to focus on the development of export sales by appointing a new head of exports sector that has more than 14 years of experience in this field in order to open new markets for the juice products, and assist in the African operations, which we started to implement its first steps via obtaining the Board of Directors approval to open a branch of the company in Rwanda taking the form of a distribution company, and we are currently having discussions on ways to penetrate the market in Kenya, while discussions on Ethiopia were postponed due to the problem of the dollar availability that they face there.
Regarding the new products, the company will start the experimental operation of the bakery line at the end of the current year and launch the product in the market at the beginning of 2018, while the hard cheese product was postponed until the purchasing power of the Egyptian consumer improves.
In the end, we are pleased with our 50% growth in the top line and await the continuation of this improvement with the development of profitability rates via small price increases and improving the efficiency of operations and distribution he added.
Sales revenue breakdown for 3Q2017:
(Unaudited figures)
Segment | EGP million |
White Cheese | 559.5 |
Mozzarella Cheese | 34.7 |
Processed Cheese | 4.6 |
Juice | 81.2 |
Total Sales | 680 |
Days on Hand (average collection period splitting):
(Unaudited figures)
Accounts receivables class | Customer balance on 30-9-2017 (EGP mn) | Number of days(average) |
Governmental agencies & Exports | 288 | 155 |
Agents( fully supervised by Domty) | 58 | 30 |
Remaining local customers | 197 | 34 |
Total Accounts Receivables | 543 | 73 |
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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.
Contacts
Ahmed El HomosaniInvestor Relations and Corporate Affairs DirectorT: +202- 010 - 6665 4045| ahmed.elhomosani@domty.org
Ahmed Mohy EldinCompliance and Corporate Governance ManagerT: +202- 010 - 0555 2235| ahmed.mohy@domty.org
DOMT.L (DOMT)