Jahez International Company for Information Systems Technology (6017) Q3 2024 earnings summary

Executive summary

• Achieved 31% year-over-year GMV growth in Q3 2024, with Adj. EBITDA margin reaching 15.0% of net revenue.

• Revenue for the nine-month period ended 30 September 2024 reached SAR 1.62 billion, up from SAR 1.29 billion year-over-year, with net profit rising to SAR 122.7 million from SAR 87.0 million.

• KSA platforms delivered 23% YoY GMV growth, with significant expansion outside Riyadh and increased regional penetration.

• Non-KSA platforms reached positive contribution margin by Q3 2024, with strong volume growth and improved profitability.

• The company completed the acquisition of the remaining 40% of Joint Preparation Company for Meals, now holding 100% ownership.

Financial highlights

• Q3 2024 net income rose 175.5% YoY to SAR 79.7m; 9M 2024 net income up 41% YoY to SAR 122.7m.

• Adj. EBITDA for Q3 2024 increased 136.9% YoY to SAR 90.0m (15.0% margin); 9M 2024 Adj. EBITDA up 52.5% YoY to SAR 160.5m (9.9% margin).

• Gross profit margin improved to 26.2% in Q3 2024 and 23.1% for 9M 2024.

• Gross revenue for Q3 2024 grew 26% YoY to SAR 648m; 9M 2024 gross revenue up to SAR 1,745m.

• Basic and diluted EPS for the nine-month period were SAR 0.60, up from SAR 0.45 year-over-year.

Outlook and guidance

• FY 2024 GMV guidance updated to SAR 8.0b–9.0b; net revenue expected at SAR 6.1b–6.8b; Adj. EBITDA projected at SAR 200m–240m.

• Management notes that interim results are not necessarily indicative of full-year performance.

• The company submitted a request to transition from the parallel market to the principal market in July 2024.