Jahez International Company for Information Systems Technology (6017) Q2 2024 earnings summary

Executive summary

• Achieved 31% YoY GMV growth in H1 2024, reaching SAR 3.1b, driven by higher order volume and average order value across markets.

• Revenue for H1 2024 reached SAR 1.02b, up 22% YoY, with net profit at SAR 43.0m, down from SAR 58.1m in the prior year.

• Expanded market share in KSA, with 20% YoY GMV growth and significant penetration outside Riyadh; non-KSA platforms now form 11% of group GMV after 2 years.

• Blu segment posted 81% YoY GMV growth and reached positive net income in H1 2024.

• The Group completed the acquisition of the remaining 40% of Joint Preparation Company for Meals, achieving full ownership.

Financial highlights

• Group net income for H1 2024 was SAR 43.0m, down from SAR 58.1m in H1 2023, reflecting lower profitability due to geographic expansion and strategic investments.

• Adjusted EBITDA for H1 2024 was SAR 70.4m (6.9% of net revenue), compared to SAR 67.2m (8.0%) in H1 2023.

• Gross profit margin held at 21.2% despite increased costs from regional growth.

• Commission revenue grew 37% YoY, with take rate improving from 12.8% to 14.5%.

• Cash and cash equivalents stood at SAR 819.2m as of June 2024, down from SAR 1.11b at year-end 2023.

Outlook and guidance

• FY 2024 updated guidance maintained: GMV expected at SAR 6.1b–6.8b, net revenue at SAR 2.1b–2.4b.

• Adjusted EBITDA guidance revised downward to SAR 170m–200m from original SAR 200m–240m.

• Management is transitioning the Group from the parallel market to the principal market, with completion expected by year-end 2024.