Almunajem Foods Profits increase to SR54 mln during Q3, by 2%

The net profit after zakat and tax for Almunajem Foods Company grew slightly to SR54 million during the third quarter, compared to SR53 million in the same quarter of last year by 2%.
This came after the announcement on Sunday of the preliminary financial results for the period ending on September 30, 2022 (9 months).
The operational profit amounted to SR59 million in the third quarter, compared to SR58 million in the same quarter of the previous year, an increase of 2%.
As for the gross profit, it amounted to SR125 million in the third quarter, compared to SR129 million in the same quarter of the previous year, an increase of 5%.
The net profit after zakat and tax in the 9-month period amounted to SR273 million, compared to SR120 million in the same period last year, an increase of 128%.
Profits per share in the current period reached SR4.56, compared to SR2 in the same period last year.
The reason for the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
Increase in net profit for the quarter compared to the same quarter of the last year by 1.8% reaching SR 53.6 million due to the following main reasons:
– Increase in revenues by 16% to SR 730.2 million.
-Increase in gross profit by 4.5 % as a result of the improvement in the profit margin of some product categories, Dairy, Fruit& vegetables, and olives.
Despite of:
– increase in operating expenses during the quarter by 8.7 % reaching SR 69.7 million comparing with the last quarter as a result of higher employees cost and expected credit loss provision.
– Increase in Zakat expense to 16.7% reaching SR 4.6 million as a result of the increase in Zakat base.
The reason for the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
Decrease in net profit for the quarter compared to the previous period of the current year by 56.1% reaching to SR 53.6 million due to the following main reasons:
– Decrease in gross profit by 36.6 % reaching SR 125 million, as a result of decreasing in profit margins of Red & white meat categories, compared with the previous quarter.
This is despite the following:
– Decrease in total operating expenses by 7.5% reaching SR 69.7 million as a result of decreasing employee cost by 8.7% reaching SR 33.3 million and marketing expenses by 14.9% reaching SR 8 million.
Profits per share in the current period reached SR4.56, compared to SR2 in the same period last year.
The reason for the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
Increase in net profit for the quarter compared to the same quarter of the last year by 127.5% reaching SR 273.3 million due to the following main reasons:
– Increase in revenues by 17.5 % to SR 2230.7 million.
– Increase in gross profit by 52 % as a result of the improvement in the profit margin of product categories due to improvement in trade conditions during the period.
Despite of:
– increase in operating expenses during the quarter by 10.7 % reaching SR 217.3 million compared with a similar period last year as a result of higher marketing & promotional activities and employee cost.
– Increase in Zakat expense to 40% reaching SR 16 million as a result of the increase in Zakat base.
Some comparative figures for the previous periods have been reclassified in line with the current period’s classification.