The Arab Food Industries Company “Domty” is preparing to set its plans to reach sales to 4 billion pounds in the next year 2022, while breaking the barrier of 240 million pounds as targeted profits for the year.
The company added that it is optimistic about completing the pace of sales growth, and believes that it is able to close the year with a total growth of 10% as sales compared to last year, despite the decline in sales in the first half.
Domty also sees the ability to improve profitability while expecting the stability of the price of raw materials.
The profits of the Arab Food Industries Company “Domty” increased by 23.4% during the third quarter of this year to reach 51 million pounds, compared to a net profit of 41.3 million pounds in the comparable period of 2020.
The company’s sales rose during the period to 956 million pounds, compared to total sales of 724.1 million pounds in the comparative quarter of the previous year.
Yesterday’s consolidated financial statements of the Arab Food Industries Company “Domty” showed that it recorded net losses of 32.6 million pounds in the first half of this year, compared to net profits of 63.8 million pounds during the comparative half of last year 2020.
Sales fell to 1.32 billion pounds during the first six months of this year, compared to 1.46 billion pounds during the first six months of last year.
The cost of sales fell during the same period to 1.04 billion pounds, compared to 1.1 billion pounds in the comparable period last year.
Gross profit fell during the first half of this year to 272.88 million pounds, compared to 351.232 million pounds in the corresponding period last year.
Operating profits fell during the same period to 3.25 million pounds, compared to 115.497 million pounds in the comparable period last year.
HC Securities’ research recommended an increase in the relative weight of “Domty” stock due to the low market price of the stock.
She pointed out that the rise in global commodity prices, the prolonged duration of Covid-19 and the increase in inflation are putting pressure on disposable income for the consumer and private consumption.
The research added that Domty started the year with an active strategy and this coincided with the phasing out of agents, forecasting that Domty’s cheese sales volume will decline by approximately 8% in 2021 year-on-year.
HC indicated that the company’s profit margin could improve during the second half of 2021, despite expectations of higher costs.
She indicated expectations that the relative decline in the commodity price cycle of Domty, the completion of the gradual layoff of agents, the improvement of cost management, and the increase in the contribution from the bakery sector with a high profit margin, will lead to an increase in profit margins in the second half of this year.
The research also reduced the target price of “Domty” expected for the next 12 months by 20% to reach 6.73 pounds per share and maintain the recommendation to increase the relative weight.
The article “Domty” targets 4 billion pounds in sales during 2022 was written in Al Borsa newspaper.