Juhayna's revenues down by 5.9% in 2nd quarter of 2020
Juhayna Food Industries, a leader in the Egyptian packaged dairy, yogurt and juice markets, announced its consolidated results for the second quarter of 2020, reporting revenues of EGP 1.9bn in 2Q20, realizing a decrease of 5.9% y-o-y.
Revenues in 1H20 amounted to EGP 3.7bn, down a slight 1.9% y-o-y. The decline was mainly driven by the lower juice demand, especially the single-serve “on-the-go” products, on the back of the Covid-19 pandemic and related restrictions.
Gross profit margin reached 34.4% in 2Q20, recording an increase of 2.2pps y-o-y. For 1H20, gross profit margin increased by 1.8pps y-o-y. Margin expansion is due to better deals and discounts negotiated with suppliers as the Company rolls on with its cost saving measures as well as EGP appreciation compared to the same period last year.
SG&A margin increased by 0.4pps to reach 19.1% in 1H20. And increased by 1.5pps in 2Q20, reaching 21.5%, due to increased consumer promotions to cater for weaker demand in some of the segments.
EBITDA for 2Q20 amounted to EGP 307mn, witnessing a decline of 1.9% y-o-y, while EBITDA margin has expanded by 0.7pps to reach 16.2%. 1H20 EBITDA increased to EGP 605mn, a 4.8% y-o-y increase, and EBITDA margin for the period expanded by 1pps to reach 16.4%. Net profit in 2Q20 reached EGP 118mn, growing by 9.4% despite capital losses of EGP 20mn due to the sale of unutilized agricultural assets and reduction of agricultural land.
Net profit margin increased by 0.9pps to reach 6.2%. For 1H20, net profit amounted to EGP 232mn, realizing an increase of 29% with net profit margin increasing by 1.5pps to reach 6.3%.
Driven by the lower financing costs due to decreased net debt levels (from EGP 2.1bn in 2Q19 to EGP 1.5bn in 2Q20) as well as lower cost of financing as the central bank of Egypt lowered the lending rate by 300bps.
Drawn from the fact that Juhayna operates in a highly competitive environment, management believes that it is in the best interest of shareholders to suspend disclosure of detailed segment analysis information
