Jahez delivers a strong H1 performance

Jahez International Company for Information System Technology (“Jahez”, or the “Group”, 9526 on the Saudi Exchange’s Nomu – parallel market), announces its financial results for the second quarter and first half of 2024, with strong 31% growth in Gross Merchandise Value (GMV) and market share gain in both KSA and non-KSA markets while expanding across the Group’s diversified verticals.

H1 2024 Key Highlights

• GOV up 25% year-on-year (YoY) to SAR 4.1 billion (H1 2023: 3.3 billion).
• GMV up 31% YoY to SAR 3.1 billion (H1 2023:2.3 billion), with non-KSA platforms up 6x and KSA platforms growth of 20% YoY.
• Record H1 total orders of 50.1 million, up 30% YoY (H1 2023: 38.6 million).
• Number of total active users up 34% YoY to 3.9 million (H1 2023: 2.9 million), with KSA regional expansion and non-KSA platforms users up 7x since inception.
• Market share gain in KSA and non-KSA markets.
• Double digit YoY Gross Revenue growth of 24% to SAR 1.1 billion (H1 2023: 887 million).
• Adj. EBITDA up 5% YoY to SAR 70.4 million representing 6.9% of Net Revenue (H1 2023: 67.2 million).
• Strong cash position of SAR 819 million in H1 2024 to drive regional expansion and investments.

Ghassab Bin Salman Bin Mandeel, CEO of Jahez Group, said:

“We delivered a strong performance in the first half of the year, building on the momentum created in 2023. The positive operational metrics included increases in both the value and volume of orders as we benefited from our expanding KSA footprint and exponential growth in our international markets despite the seasonal impacts typically seen during this period. We are on track to meet our FY 2024 guidance and deliver continued profitable growth.

From a strategic perspective, we are investing across our business to differentiate Jahez as the region’s leading brand rooted in Saudi Arabia delivering an ecosystem of on demand services that enhances customers’ lifestyle and empowers our business partners. We are also looking forward to transferring our listing from Nomu to the Main Market, marking yet another key milestone on the Company’s growth trajectory.”

Operational Highlights 

In KSA, Jahez delivered resilient order growth of 16% YoY in H1 2024 despite seasonality and a food poisoning incident that took place in the second quarter kingdom-wide. New Prime and loyalty campaigns were also launched in the first half of the year in order to increase customer engagement.

Through its subsidiary Logi, Jahez is actively aligning with new Saudi regulations aimed at phasing out non-Saudi delivery freelancers. The first two phases of fleet reallocation were completed by July, with cost controls enhanced via an optimized dispatch algorithm. Jahez has also enforced the mandatory uniform policy across its internal drivers, while 3PL partners are transitioning to comply. The company is collaborating with authorities to implement face recognition technology in its delivery apps and is increasing motorcycle use in line with new guidelines. Additionally, Jahez has initiated a new revenue stream by enabling advertisements on light transport vehicles.

The Group continues to focus on cost optimization through its diversified verticals and investments, in addition to scaling the business in both KSA and non-KSA markets. To this end, the contribution of non-KSA GMV has reached 11% in H1 2024.

H1 2024 Financial Highlights 

The Group reported Net Revenue of SAR 1.0 billion, a 22.3% increase YoY. This growth was driven by a 30% rise in the total number of orders, surpassing 50.1 million, and a higher average order value (AOV), which increased to SAR 61.5 in H1 2024 from SAR 60.4 in H1 2023. Additionally, the average take rate significantly improved from 12.8% to 14.5% YoY.

The Commission Revenue in H1 2024 grew by 50.3% YoY to SAR 447.9 million as average commission increased as well as a GMV growth of 31%.

The Delivery Revenue grew by 4.8% YoY to SAR 527.7 million in H1 2024. This was primarily driven by higher total orders and discounted pricing per order in line with market trends, and expansion in non-central KSA regions, which now account for 42% of total KSA orders, as well as a 6x increase in non-KSA markets. The volume growth was mainly driven by the significant growth in the total active users by 34% to 3.9 million, while maintaining a high order frequency of 4.3 orders per month.

Other Revenues achieved a 36% growth YoY growth to SAR 46.2 million driven mainly by higher revenues related to new verticals.

The Group’s Gross Profit Margin remained relatively stable at 21.2% despite seasonality and strong top-line growth as cost optimization initiatives across the business continue to be a key focus during expansion.

Adj. EBITDA by segment

During the first half, Jahez reported an increase in adjusted EBITDA of 5% YoY to SAR 70.4million (6.9% of net revenue) as the improvement in the core business more than offset the losses in other verticals. In fact, the consistent improvement trend in KSA platforms continued in H1 2024 with adjusted EBITDA reaching SAR 123.6 million (13.7% of Net Revenue), up 12.5% YoY to support the Group’s expansion.

Net Profit by segment

Net Profit decreased by 25.9% YoY reaching SAR 43 million in H1 2024 mainly driven by the geographic expansion and strategic investments in new verticals

H1 2024 Segments Highlights:

Delivery Platforms – KSA Segment[1]:

• KSA platforms GMV increased 20% YoY to SAR 2.7 billion despite the seasonality effect of limited opening hours during Ramadan and Hajj, and the impact of the food poisoning incident that took place in the second quarter kingdom-wide.
• KSA orders grew by 16% YoY driven by the Group’s strategic expansion into newly entered cities while solidifying its position in key regions and leveraging subscriptions and discounted delivery campaigns.
• The segment recorded a 12.5% YoY increase in adjusted EBITDA, reaching SAR 123.6 million (13.7% of Net Revenue), up from SAR 109.9 million (13.5% of Net Revenue in H1 2023).
• The segment recorded a Net Profit of SAR 124.3 million compared to SAR 115.5 million in H1 2023.

Delivery Platforms – Non KSA Segment[2]:

• Non-KSA platforms achieved a significant increase in GMV to SAR 339 million with a 6x YoY growth in total number of orders, amounting to 7.0 million, compared to SAR 57 million GMV and 1.4 million orders in H1 2023.
• Non-KSA AOV saw a substantial 21% YoY increase, reaching SAR 48.7 per order compared to SAR 40.3 per order in H1 2023, driven by shifts in merchant and country mix.
• The segment recorded net losses of SAR 47.7 million, mainly due to higher volumes from the full-scale operations in Kuwait in 2024, compared to partial operations in 2023. This was coupled with a material enhancement in unit economics, including enhanced revenue per order and cost optimization initiatives.

Logistic Segment[3]:

• The Logistic Segment achieved a positive adjusted EBITDA of SAR 3.8 million driven by cost efficiency initiatives, economies of scale, and the optimization of the orders dispatch algorithm.
• Overall net losses increased to SAR 14.4 million compared to SAR 10.6 million in H1 2023.
• Fleet utilization improved, directly linked to the scaling of the Group and the implementation of in-house technological tools that enhanced delivery partners’ productivity. This ensured the delivery of reliable, competitive services while maintaining full compliance with new regulations.

Others:

• The Group’s Others Segment reported net losses of SAR 19.1 million mainly due to changes in the fair value of the Red Color minority investment and the ramp-up of operations in new verticals, including Marn, Sol and Co.

Summary of the Group Investments:

KPI’s

Glossary of Terms