The Arabian Food Industries Company (Domty) has reported a net profit of EGP 32.1m in the first quarter (1Q) of 2020, according to Domty Vice Chairperson Mohamed Eldamaty.
The reported net profits follow on the back of a total of EGP 744.8m in sales, Eldamaty said.
”Until now, the company, like all companies, has gone through extraordinary circumstances that have changed the fundamentals of traditional management and forced everyone to change a lot of plans and goals,” Eldamaty said.
He noted that 2020 started weaker than expected, with the company one of many reporting low sales during January and February due to weak purchasing power.
Sales started to recover significantly with the beginning of the coronavirus (COVID-19) crisis in mid-March, especially in the cheese segment which achieved massive growth due to panic buying among consumers.
However, sales of baked products and juices have, in general, declined due to the closure of schools and universities, which have provided a major segment of consumers. Despite the economic downturn on the back of the health crisis, the company was able to achieve a 13% growth rate.
The company’s figures also remain higher than the average growth rate for Egypt’s fast-moving consumer goods (FMCG) market, and highlights the company’s potential to grow through a diversified portfolio of products.
In anticipation of delays in raw material imports, Domty’s executive management decided, at the start of the coronavirus crisis, to increase the company’s stock of raw materials and packaging.
Eldamaty added that, although the company achieved significant growth rates in April, it saw a decline in May due to traditionally lower sales in Ramadan and the longer Eid Al-Fitr holiday.
“Our goal now is to successfully introduce our new bread product range while maintaining and securing our market share in the cheese and juice categories,” Eldamaty said, adding, “We are also looking to restore sandwich sale volumes when normal life returns and schools reopen,”