Juhayna Food Industries, the Egypt-based dairy group, has booked higher first-half sales but a fall in profits, with the company pointing to “instability” in its domestic market.

The company booked a 24% rise in revenue to EGP2.44bn, helped by higher sales of yoghurt and juice.

However, Juhayna’s EBIT fell 15% to EGP247m. Net profit was down 15% at EGP110m. Second-quarter net profit tumbled 54% to EGP30m.

Chairman and CEO Safwan Thabet said “a series of difficult conditions” hit Juhayna’s net profit in the second quarter, with its net profit margin reaching 2.2% compared to 5.9% for the same period last year. “The drop in net profit comes on the back of instability in the domestic market during the last period, particularly with the surge in foreign currency rates by up to 40%. Additionally, the severe shortage of the US dollar and the consequent foreign currency deposit caps imposed by the banks caused the company to incur EGP11m in demurrage expenses during the second quarter due to our inability to clear imported materials.”

The trading conditions have prompted Juhayna to up its prices, although Thabet said the “sensitive nature of the food sector” meant it would do so gradually.

He added: “On the operational front, we are pushing forward with our development initiatives with the commissioning of seven new filling lines for juice, dairy, and yogurt products. Additionally, our distribution network continues to expand with the opening of a new distribution center in the North Coast. Juhyana will take all necessary measures to overcome the challenges posed by rising exchange rates, improve profit margins, and maximize value and return for its shareholders.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.