Jahez profits increase to SAR 62.7 million during H1 by 17.8%

Jahez International Company for Information Systems Technology announced an increase in net profit after zakat and tax in the first half to SAR 62.7 million, compared to SAR 53.2 million in the same half of last year, by 17.8%. This came after the announcement on Sunday of the interim consolidated financial results for the period ending on June 30 (Six months).

Operational profit reached SAR 42.4 million in the first half, compared to SAR 61.7 million in the same half of the previous year, a growth of 31.2%.

Total shareholders’ equity (excluding minority rights) amounted to SAR 1.07 billion in the six-month period, compared to SAR 990.9 million in the same period last year, an increase of 8.5%.

Earnings per share in the current period reached SAR 6.1, compared to SAR 5.2 in the same period last year.

The Net Profit of the Group increased by 10.2% reaching SAR 58.1 million in the first half of 2023 compared to SAR 52.7 million in the same period of 2022, the reasons for the change in profits according to the operating segments are as follows:

Delivery Platforms – KSA Segment:

• KSA Platforms net profit SAR 115.5 million vs. last year SAR 79.6 million, a 45% growth YoY.
• KSA orders grew by 17% YoY due to the group focus on expansion in 100 cities & maintaining a solid position in its current market.

Delivery Platforms – Non KSA Segment:

• The Non KSA platforms segment recorded SAR -41.1 milloon net losses mainly driven by the expansion strategy & other customer acquisition costs in order to gain market share in the newly penetrated markets.

Logistic Segment:

• With its second anniversary, the Logistic Segment recorded a positive EBITDA exceeding SAR 7.1 million benefiting from cost efficiencies initiatives & economies of scale.
• Overall net losses were reduced to SAR -10.6 million which is 54% decrease vs. the same period of last year.

Others:

• The Group investments in other vertical businesses has resulted in SAR -9.1 million EBITDA and net losses of SAR -5.7 million mainly due to the additional costs associated with growing the Cloud Kitchens footprint within KSA.