Juhayna Food Industries (JUFO) Q4 2023 earnings summary

Executive summary

• FY2023 net sales reached L.E. 16.128bn, up 42%; net profit after tax rose to L.E. 1.021bn, up 60%.

• EBITDA grew 57% to EGP 2.22bn, with a 13.8% margin; operating cash flow was L.E. 1.844bn.

Financial highlights

• FY2023 gross profit was L.E. 4.222bn, up 45%, with a 26.2% margin; operating income was L.E. 1.802bn.

• Q4 revenue rose 40% to EGP 4.47bn and gross profit rose 51% to EGP 1.22bn; EBITDA increased 39% to EGP 649mn, while net profit fell 13% to EGP 143mn.

• FY2023 net profit before tax was L.E. 1.365bn; net profit after tax was L.E. 1.021bn vs L.E. 638.0m in 2022, and basic EPS was L.E. 0.98 vs L.E. 0.63.

• Selling and marketing expenses rose to L.E. 1.934bn from L.E. 1.545bn; advertising expense was L.E. 856.0m vs L.E. 667.9m.

• Net finance cost was L.E. 320.9m vs L.E. 123.3m, including foreign-exchange losses of L.E. 163.8m vs L.E. 51.5m.

Segment performance

• Financial-statement segment sales: Dairy L.E. 12.069bn, Concentrates and juices L.E. 3.736bn, and Other L.E. 323.1m in 2023.

• Product-category revenue: Dairy EGP 8.53bn, Fermented EGP 3.54bn, Juice EGP 2.74bn, and Concentrates & Agri EGP 1.03bn.

• Export sales rose 137% to EGP 1.17bn, representing 7.3% of annual revenue; third-party distribution revenue grew 24% to EGP 287mn.

• FY2023 volume market shares: plain milk 64%, flavored milk 57%, spoonable yogurt 30%, drinkable yogurt 48%, and juice 28%.

• Operations were reported in three activity segments and one geographic segment, Egypt.