Almunajem reports profit leap of 232% in 1Q

Almunajem Foods Co. recorded profit jump of 232% to SR 98 million in the first quarter of 2022 compared to SR 30 million during the same period of the previous year.

According to its financial statement published on Tadawul, Almunajem said that its operational profit surged 206% to SR 102 million in the first quarter of the current year against SR 33 million in the same quarter of 2021.

Gross profits of the company rose 78% to SR 173 million during 1Q 2022, from SR 97 million during the same period of the year earlier, while profit per share (EPS) hiked to SR 1.63 from SR 0.49.

Higher profits were spurred by:

– Increase in revenues by 25.5% to SR 788 million.

– Increase in gross profit by 77.8 % 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 11.7 % reaching to SR71.8 million comparing with the last quarter as a result of higher marketing & promotional activities.

– Increase in Zakat expense to 49% reaching to SR5.3 million as result of the increase in Zakat base.

Increase in net profit for the quarter compared to the previous period of the current year by 112.9% reaching to SR 97.9 million due to the following main reasons:

– Increase in gross profit by 50.2% reaching to SR 173.3 million, as a result of the improvement in profit margins of most of product categories due to improvement in trade conditions,

In addition to the improvement in the sales mix while the period coincided with Ramadan season comparing with the previous quarter.

Despite of the increase in total operating expenses by 8.4% reaching to SR 71.8 million as a result of the Increase in marketing expenses to reach SR 10.6 million, mainly affected by Ramdan session.