Juhayna Food Industries (JUFO) Q3 2023 earnings summary

Executive summary

• 9M 2023 net sales rose to L.E. 11.654bn from L.E. 8.161bn and net profit after tax reached L.E. 878.9m from L.E. 474.1m; Q3 net sales were L.E. 4.500bn and net profit after tax L.E. 322.5m.

• 3Q23 revenue grew 50% YoY and 9M23 revenue 43%; higher pricing, demand, exports and cost savings supported profitability amid inflation and lower dairy and fermented-product volumes.

Financial highlights

• 9M gross profit was L.E. 3.000bn versus L.E. 2.095bn; operating income was L.E. 1.320bn versus L.E. 667.0m.

• Q3 gross profit was EGP 1.07bn, up 57% YoY; 9M gross profit was EGP 3.00bn, up 43%.

• 9M profit before tax was L.E. 1.128bn versus L.E. 624.0m; net finance expense was L.E. 177.9m versus L.E. 49.5m.

• 9M net profit attributable to parent shareholders was L.E. 878.6m versus L.E. 473.9m; reported EPS was L.E. 0.93 versus L.E. 0.50.

• Operating income was EGP 494m in 3Q23 versus EGP 228m; net profit increased 108% in 3Q23 and 85% in 9M23.

Segment performance

• 9M sales: dairy L.E. 6.049bn, chilled/fermented EGP 2.62bn, juices EGP 1.93bn, concentrates and agriculture EGP 834m, and distribution EGP 223m.

• 3Q23 revenue: dairy EGP 2.45bn (+54% YoY), fermented EGP 904m (+35%), juice EGP 843m (+47%), concentrates and agriculture EGP 231m (+102%), and distribution EGP 72m (+59%).

• Juice volumes grew YoY in 3Q23; dairy and fermented volumes declined YoY, while dairy improved QoQ and fermented volumes were flat QoQ.

• Export sales rose 188% to EGP 931m in 9M23 and 79% to EGP 265m in 3Q23, contributing 8% and 5.9% of revenue, respectively.