‎“Burgerizer” profits increased to SR3.26 million during H1, by ‎‎10%‎

The net profit after zakat and tax of the Sandwich House Fast Food Restaurant Company “Burgerizer” rose to 3.26 million riyals during the current period, compared to 2.98 million riyals in the same quarter of last year, an increase of 10%. This came after today’s announcement of the preliminary financial results for the ending period on June 20, “6 months.”

Operational profit amounted to 5.5 million riyals during the current period, compared to 4.6 million riyals in the same period last year, an increase of 19%.

Earnings per share amounted to 0.09 riyals in the current period, compared to 0.09 in the same period last year.

The company’s net profit for the current period increased by 9.6% compared to the net profit of the previous period for the following reasons:

Revenues: Revenues increased compared to the previous period by 9.2%, mainly due to the increase in sales per branch and the increase in the number of customers. On the other hand, the number of branches increased to 103 by the end of the current period compared to 101 branches by the end of the same period of the previous year. 7 new branches have been added and 5 branches closed since the end of the same period last year. Despite the increase in the number of customers, the average bill value decreased.

Gross Profit: increased by 6.6% mainly due to an increase in average sales per branch. However, the gross profit margin decreased from 28.42% in the same period of the previous year to 27.75% in the current period due to the increase in the cost of food. Moreover, consumption, rent, utilities and maintenance expenses increased in line with the increase in the number of branches.

Selling Expenses: increased by 15.48%, mainly due to the increase in the contribution to the electronic sales channels

Administrative expenses: decreased by 9.9%, mainly due to a decrease in the workforce and efforts to use existing resources more efficiently

Gross profit for the six months period ended June 30, 2022 has been adjusted by SAR 2.77 million as a result of the reclassification of regional management costs from cost of revenue to general and administrative expenses in the financial statements on June 30, 2022 in line with the current period presentation. For more details, please refer to note 13 in the financial statements for the six-month period ended 30 June 2023.

As a result of splitting the nominal value of the share from 10 Saudi riyals per share to 1 Saudi riyal per share during the six-month period ending on June 30, 2023, the number of shares increased from 3.5 million shares to 35 million shares, so the earnings per share for the six-month period were calculated. months ending June 30, 2023 and 2022 retroactively by adjusting the weighted average number of shares outstanding to reflect the impact of the stock split from 3.5 million to 35 million shares.