Jahez Group records 195% profit leap in 2021

Jahez International Company for Information System Technology announced that its profits after zakat and tax climbed 195% to SR 117 million in 2021 from SR 40 million in 2020, according to its financial result statement published on Tadawul.

Operational profit of Jahez also jumped by 195% to SR 119 million last year from SR 40 million the year earlier.

The company reported gross profit surge of 151% to SR 272 million in 2021 compared to SR 109 million during the same period of 2020, while profit per share (EPS) slipped to SR 19.6 from SR 231.8.

Jahez profit jump was spurred by:

– Higher revenues by 165.8% during 2021 due to the increase in delivery fee revenue and commission revenue by SR 459.1m and SR 238.9m, respectively mainly due to the following:

– The increase in Gross Merchandize Value (GMV) in 2021 by 136% reaching SAR 3.3b due to higher orders number in 2021 by 164% to reach SR 51.6m orders, compared to SR 19.5m order in the previous year due to the increase by 141% in average users number 2021, compared to the previous year, as well as the increase in monthly average orders per user to reach 4.7 in 2021, compared to 4.5 in the previous year, while the Gross Merchandize Value (GMV) per order decreased in 2021 reaching SAR 64.8 compared to SAR 72.6 in the previous year.

– The average take rate increased in 2021 to reach 11.6%, compared to 10.6% in the previous year, in addition to increase in average merchant number to reach 5,550 restaurants in 2021 compared to 2,336 restaurants in the previous year.

– Gross profit increased by 150.6% despite the increase in cost of revenue by 170.5% which is mainly due to the increase in total delivery costs and operations which is in line with the number of orders during 2021.

– Operating profit increased by 194.9% despite the increase in Marketing & advertising expenses by 128.7% which is in line with the increase in the total Gross Merchandize Value (GMV) during 2021.

– Earnings before interest, taxes, depreciation and amortization (EBITDA) for the year 2021 reached to SAR 125.3m compared to SAR 43.6m for last year, with an increase of 187.3% which is mainly due to the growth in the Group’s operating revenue against lower growth in the Group’s operating expenditures.