Jahez profits jump 85% in H1 to SR53 mln

Jahez International Company for Information System Technology (Jahez) revealed that the net profit after zakat and tax in the first half rose to 53.2 million riyals, compared to 28.7 million riyals in the same period last year, at a rate of 85.3%. This came after today’s announcement of the preliminary financial results for the period ending in 06-30 2022 (six months).

The operating profit amounted to 61.1 million riyals in the first half, compared to 31.4 million riyals in the same period of the previous year, a growth of 91.2%.

The total shareholders’ equity “without minority rights” amounted to 990.9 million riyals in the 6-month period, compared to 187.2 million riyals in the same period last year, an increase of 439%.

Earnings per share in the current period reached 5.17 riyals, compared to 4 riyals in the same period last year.

Jahez Group achieved a net income after zakat of SAR 53.2m in the first half 2022, a 85.3% increase compared to SAR 28.7m in the corresponding period of last year, this was mainly driven by the following:

– The increase in revenues by 59.9% during the first half 2022 due to the increase in delivery fee revenue and commission revenue by SAR 159.5m and SAR 81.8m, respectively mainly due to the following:

– The increase in Gross Merchandize Value (GMV) in the first half 2022 by 36.5% reaching SAR 2.0b due to the increase in orders number in the first half 2022 by 45.5% to reach 31.5m orders, compared to 21.6m orders in the corresponding period of last year due to the increase by 48.1% in average users number in the first half 2022, compared to the corresponding period of last year, despite the slight decrease in monthly average orders per user to reach 4.5 orders in the first half 2022, compared to 4.6 orders in the corresponding period of last year, while the Gross Merchandize Value (GMV) per order decreased in the first half 2022 reaching SAR 63.2 compared to SAR 67.4 in the corresponding period of last year.

– The average take rate increased in the first half 2022 to reach 12.3%, compared to 11.2% in the corresponding period of last year, in addition to increase in average merchant number to reach 7,879 restaurants in the first half 2022 compared to 4,742 restaurants in the corresponding period of last year.

– Gross profit increased by 90% despite the increase in cost of revenue by 52.6% which is mainly due to the increase in total delivery costs and operations which is in line with the number of orders during the first half 2022.

– Operating profit increased by 91.2% despite, the increase in Research & Development expenses by 226.4% in line with the Company strategy to invest in the platforms development and the user experience improvement, and the increase by 243.7% in General & administrative expenses reflecting the increase in head count in line with the growth and geographical expansion as well as the expansion of the subsidiaries activities and especially Supportive Solutions Company for Logistic Services “Logi”.

– Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first half 2022 reached to SAR 66.1m compared to SAR 34.1m for the corresponding period of last year, with an increase of 93.9%.

Additional Information:

Basic and diluted earnings per share for the period ending on June 30, 2022 have been calculated by dividing the Net profit attributable to Equity holders of the Parent Company by the weighted average number of shares of 10,288,140 shares and for the period ending June 30, 2022 by dividing the Net profit attributable to Equity holders of the Parent Company by the weighted average number of 7,099,448 shares.