Juhayna Food Industries (JUFO) Q2 2024 earnings summary

Executive summary

• H1 2024 net sales rose 69% to L.E.11.47bn from L.E.6.80bn; net profit after tax increased 166% to L.E.1.48bn from L.E.56m.

• Q2 net sales increased 70% to L.E.6.04bn from L.E.3.55bn; net profit after tax rose 362% to L.E.00bn from L.E.22m.

• Concentrates profitability and stronger finished-product exports supported earnings growth and wider international reach.

Financial highlights

• H1 gross profit rose 142% to L.E.3.81bn; gross margin expanded 10.1 pps to 33.2%.

• H1 EBITDA grew 192% to L.E.2.91bn, with a 25.4% margin, up 10.7 pps.

• H1 SG&A rose 64% to L.E.1.24bn, while SG&A as a share of sales declined 0.3 pps to 10.8%.

• Reported H1 EPS was L.E.1.57 versus L.E.0.59; EPS after deducting the FX translation loss allocated to owners was L.E.1.20.

• A L.E.522.1m loss on listed investments at fair value through profit or loss was recognized in H1.

Segment performance

• H1 sales by activity were L.E.5.14bn for dairy, L.E.6.23bn for concentrates and juices, and L.E.101m for other activities.

• Dairy revenue rose 45% to L.E.5.14bn; fermented products grew 73% to L.E.2.45bn.

• Juice revenue increased 90% to L.E.2.05bn; concentrates and agriculture revenue grew 194% to L.E.1.77bn.

• Export sales rose 190% to L.E.1.93bn, 17% of H1 revenue; USD export sales increased 116% to USD 46.7m. Concentrates led export growth.