The Arabian Food Industries Company (Domty) announced its results for the fourth quarter (Q4) of 2020, noting an overall good performance.
The company recorded a net profit of EGP 52.9m, the second highest quarterly profit recorded in the company’s history, up 28% quarter-on-quarter (q-o-q) and 35% year-on-year (y-o-y). It also reported revenues of EGP 815.7m, reflecting an uptick of 13% q-o-q and 26% y-o-y.
Cheese sales, which accounted for 71% of the company’s sales, came in at EGP 576.1m, up 17% q-o-q and 28% y-o-y.
Domty noted that Q4 of 2020 was the best quarter of the year, despite low seasonality, due to the enhancement of wholesale and retail sales and partial recovery of government sales.
It is worth noting that the company increased prices by 2% during the quarter. Also, in Q4 of 2020, the company recovered most of the lost market share during 2020. Juice sales, which accounted for 10% of sales, came in at EGP 85.6m during the quarter, down 12% q-o-q and up 56% y-o-y.
Bakery sales (19% of sales) came in at EGP 154m during the quarter, up 16% q-o-q and 9% y-o-y. The company was operating at full capacity on lines 1 and 2 from mid-October until the end of the year, due to high demand as a result of the reopening of schools.
Domty doubled its bread volumes sales in Q4 of 2020. Gross margin (GPM) stood at 25.2% during the quarter, up 37bps q-o-q and down 1.7pps y-o-y.
The cheese GPM amounted to 23.3%, up 1.2pps q-o-q and down 2.9pps y-o-y, whilst juice GPM of 19.6% declined 3.1pps q-o-q and was up 2.9pps y-o-y.
Bakery GPM stood at 36.8% during the quarter, down 1.1% q-o-q and up 2.6pps y-o-y. The BoD proposed distributing a cash dividend of EGP0.20/share to shareholders for 2020, equivalent to the cash dividend paid in the last two years. If approved by shareholders, the same would represent a div yield of 3.7%.