Almunajem Foods Profits jump 221% in 2Q to SR122 mln

The net profit after zakat and tax for Almunajem Foods Company jumped to SR122 million during the 2Q, compared to SR38 million during the same quarter of the previous year, by 221%.

This came after announcing on Tuesday the consolidated interim condensed financial results for the period ending on June 30, 2022 (6 months).

The operational profit amounted to SR122 million during the second quarter, compared to SR41 million during the same quarter of the previous year, an increase of 196%.

The total profit amounted to SR197 million during the 2Q, compared to SR109 million during the same quarter of the previous year, a growth of 81%.

The net profit after zakat and tax during the current period amounted to SR220 million, compared to SR74 million during the same period of the previous year, an increase of 200%.

Profits per share during the current period amounted to SR3.66, compared to SR1.12 during the same period of the previous year.

The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is increasing in net profit for the quarter compared to the same quarter of the last year by 221.3% reaching SR 122.1 million due to the following main reasons:

– Increase in revenues by 16% to SR 712.9 million.

– Increase in gross profit by 80.8 % as a result of the improvement in profit margin of most of product categories due to improvement in trade conditions during the period.

Despite of:

– increase in operating expenses during the quarter by 11 % reaching to SR75.4 million comparing with the last quarter as a result of higher marketing & promotional activities.

– Increase in Zakat expense to 55.2% reaching to SR 6 million as result of the increase in Zakat base.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is increasing in net profit for the quarter compared to the previous period of the current year by 25.1% reaching to SR 122.1 million due to the following main reasons:

– Increase in gross profit by 13.7% reaching to SR 197.1 million, as a result of the improvement in profit margins of Red & white meat categories due to improvement in trade conditions, comparing with the previous quarter.

Despite of:

– Decrease in revenues by 9.5% due to the Ramadan season coinciding with the previous quarter

– The increase in total operating expenses by 4.5% reaching to SR 75.4 million as a result of increasing employee cost by 10.6% reaching SR 36.9 million.

The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is increasing in net profit for the quarter compared to the same quarter of the last year by 225.6% reaching SR 219.6 million due to the following main reasons:

– Increase in revenues by 20.8 % to SR 1500.9 million.

– Increase in gross profit by 79.4 % as a result of the improvement in profit margin of most of product categories due to improvement in trade conditions during the period.

Despite of:

– Increase in operating expenses during the quarter by 11.6 % reaching to SR 147.5 million comparing with similar period last year as a result of higher marketing & promotional activities and employee cost.

– Increase in Zakat expense to 52.3% reaching to SR 11.3 million as result of the increase in Zakat base.

These estimated financial results for the period ended 30 Jun 2022 are prepared by the management of the Company and were not reviewed by the external auditors.

Some comparative figures for the previous periods have been reclassified in line with the current period’s classification.