Almunajem Foods Annual Profits Decrease 27.7% to SR166.1 mln

The Almunajem Foods Company net profit after zakat and tax decreased to SR166.1 million during the year 2021, compared to SR229.7 million in 2020, a rate of 27.7%.

This came after Almunajem announcement on Monday of the annual financial results ending on 31.12.2021 (12 months).

The operational profit during the current period amounted to SR178.9 million, compared to SR230.9 million during the same period of the previous year, down 22.5%.

The gross profit during the current period, it amounted to SR441.4 million, compared to SR487.6 million during the same period of the previous year, a decrease of 9.5%.

Profits per share during the current period amounted to SR3.1, compared to SR4.28 during the same period last year.

Increase in net profit for the quarter compared to the same quarter of the last year by 65.5% reaching SR46 million due to the following main reasons:

– Increase in revenues by 9.2% to SR 679.5 million.

– Increase in gross profit by 18.1% as a result of the improvement in selling prices of some main product categories.

– Decrease in selling & distribution expenses during the quarter by 6.8% reaching to SR57.6 million comparing with the last quarter as a result of lower marketing & promotional activities.

– Increase in Zakat expense to reach SR3.3 million as result of the increase in Zakat base.

Decrease in net profit for the quarter compared to the previous period of the current year by 12.7% reaching to SR46 million due to the following main reasons:

– Decrease in gross profit by 3.6% reaching to SR 115.3 million, due mainly to the increase in purchase cost of some main product categories comparing with the previous quarter.

– Increase in ECL provision to reach SR1.8 million and the increase in interest on employees’ defined benefit liabilities to reach SR0.9 million, which is booked annually on the 4th quarter.

Despite of increase in revenues by 4%

Decrease in net profit for the year by 27.7% reaching to SR 166.1 million due to the following main reasons:

– Decrease in gross profit by 9.5% reaching to SR 441.4 million compared to 2020 which witnessed a concentration of sales in the first half in retail channels, in addition to overall decrease in gross margin after resuming discounts, which were suspended during 2020.

– Increase in selling & distribution expenses by 1.7% reaching to SR232 million due to:

– Increase in promotional activities, which were suspended during the pandemic;

– Increase in ECL provision and the increase in zakat expense compared to the previous period, due to increase in Zakat base.

– One-off other income booked last year amounting to SR10.3 million related to a lawsuit raised against one of the service providers.

% Despite the increase in revenues by 1.5

Profits per share calculated based on the weighted average number of ordinary shares for basic and diluted EPS as at 31 December 2021 are 53,604,247 (31 December 2020: 53,604,247).