Juhayna Food Industries (JUFO) Q2 2023 earnings summary

Executive summary

• H1 2023 net sales rose 39% to LE7.153bn and net profit after tax increased to LE556.4m from LE318.9m; EBITDA grew 64% to LE997m.

• Results benefited from pricing, stronger demand in May and June, export growth and cost savings, while inflation and raw-material costs pressured margins.

Financial highlights

• H1 gross profit was LE1.928bn, up 36% YoY; operating income increased to LE826.3m from LE439.4m.

• Q2 net sales rose 35% YoY to LE3.730bn; net profit was LE217m, up 22%, and gross profit was LE910m.

• H1 net finance expense rose to LE128.4m from LE24.6m; net profit included a net FX loss of LE35m.

• H1 gross margin was 27.0%, down 0.4 percentage points YoY; Q2 gross margin was 24.4%, down 3.6 points.

• H1 EPS was LE0.59 versus LE0.34; EBITDA margin rose 2.1 points to 13.9% and net profit margin increased 1.6 points to 7.8%.

Segment performance

• H1 Dairy revenue rose 39% YoY to LE3.599bn; Fermented increased 18% to LE1.714bn and Juice rose 29% to LE1.088bn.

• Concentrates & Agri revenue increased 311% YoY to LE602m; third-party revenue rose 13% to LE151m.

• Export sales grew 279% YoY to LE666m, 9% of revenue, with concentrates exports the primary driver; operations span dairy, chilled dairy, juices, concentrates and agriculture.