Al Munjim Food profits decrease to SAR 57.6 million during Q2 by 53%

Al Munjim Food Company’s net profit after zakat and tax decreased to SAR 57.6 million during the second quarter, compared to SAR 122 million in the same quarter of last year, by 53%. This came after announcing the interim financial results for the period ended on June 30, 2023 (6 months).

The operating profit amounted to SAR 61 million in the second quarter, compared to SAR 128 million in the same quarter of the previous year, a decrease of 89%.

The net profit after zakat and tax during the 6-month period amounted to SAR 139 million, compared to SAR 220 million in the same period last year, a decline of 37%.

Earnings per share in the current period amounted to SAR 2.32, compared to SAR 3.66 in the same period last year.

• Decrease in gross profit by 31% reaching SAR 135.2 million, due to the decrease in profit margins of red & white meat, frozen fruits & vegetables and dairy categories compared with the same quarter of the last year, due to the change of commercial factors.

Despite of:

– The increase in revenue by 8.4%, reaching SAR 772 million as a result of the increase in sales volume.

– Operating expenses decreased as a percentage of revenue from 10.4% (Q2 2022) to 9.6% (Q2 2023).

Net profit of 2nd Quarter 2023 decreased by 29.7% compared to the previous quarter reaching SAR 57.6 million due to the following main reasons:

• Decrease in revenue by 14.4% reaching SAR 772M due to the decrease in sales volume across most of the categories due to the coincidence of the previous quarter with the Ramadan season.

• Decrease in gross profit by 13.2% reaching SAR 135.2 million, due to the decrease in sales and because of the change in sales mix as compared to the previous quarter.

Decrease in net profit for the period as compared to the same period of the last year by 36.5%, reaching SAR 139.4 million due to the following main reasons:

• Decrease in gross profit by 21 % as a result of the decrease in the profit margin of most product categories despite the increase in sales volume in all categories during the period compared to the same period of the last year.

• increase in operating expenses during the period by 2 % reaching to SR 148.5 million as compared with the similar period last year as a result of higher sales being generated. However, operating expenses decreased as a percentage of revenue from 9.7% to 8.9%.

These estimated financial results for the period ended 30 Jun 2023 are prepared by the management of the Company and were not reviewed by the external auditors.

The company stated that some comparative figures for the previous periods have been reclassified in line with the current period’s classification.