Juhayna Food Industries (JUFO) Q1 2024 earnings summary

Executive summary

• Q1 2024 net sales rose 68% YoY to LE 5.758bn, supported by pricing and export growth; net profit increased 41% to LE 478.7m.

• Results included a LE 522.1m loss on listed shares measured at fair value through profit or loss.

Financial highlights

• Gross profit rose 117% to LE 2.205bn, with gross margin up 8.6pps to 38.3%; operating profit was LE 1.313bn versus LE 498.7m.

• EBITDA rose 136% to LE 1.397bn; EBITDA margin expanded 7.0pps to 24.3%.

• Profit before tax was LE 714.8m versus LE 424.1m; income tax expense was LE 236.1m versus LE 84.7m.

• Net margin was 8.3%, down 1.6pps; basic EPS was LE 0.51 versus LE 0.36.

• Operating cash flow was LE 215.4m versus LE 343.5m; cost of sales rose 48% YoY, reflecting higher raw milk and packaging prices.

Outlook and guidance

• March 2024 price adjustments were intended to support volume growth; confidence was expressed in an Egyptian market recovery.

• Plans included opening additional foreign markets and expanding the export footprint.