Wednesday, 9 August 2023

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EARNINGS WATCH

Egyptian dairy giant Juhayna’s revenue, net income rises in 2Q 2023

Juhayna’s exports increased by almost 5x y-o-y in 2Q 2023

Juhayna Food Industries’ bottomline rose 22% y-o-y in 2Q 2023 to EGP 217 m n , according to the company’s earnings release ( pdf ). Juhayna’s topline rose 35% y-o-y in 2Q to EGP 3.7 bn on the back of increased demand and higher price tags.

For the first half of the year, revenues were up 39% to nearly EGP 7.2 bn. Net earnings reached EGP 556 mn, up 74% y-o-y. The higher earnings also came despite the company recording an EGP 35 mn loss on its USD payables as a result of the currency devaluation and FX shortages.

Exports more than quadrupled: The EGX-listed juice and dairy company’s exports increased by almost 5x in 2Q 2023 to EGP 380 mn. Some 10% of Juhayna’s revenues in 2Q were attributed to exports, up from 3% in the same period a year before.

What they said: High inflation “is causing consumers to cut down on consumption and trade down to lower-priced products,” the release reads. “Juhayna is well-positioned for this trend, as it has a diverse product portfolio that offers a variety of price points to meet the needs of different consumers.”

The company’s share price declined 1% to close at EGP 13.96 on Tuesday.