Mohamed El Damaty, vice chairperson of Arabian Food Industries Company (Domty), told Daily News Egypt in an interview that Domty expects its revenues to reach EGP 2.6bn by the end of 2018, up from EGP 2.253bn in 2017, an increase of 15.4%.
He added that Domty has no intention to increase its prices in the Ramadan season, explaining that Ramadan sales do not represent a high percentage of the company’s total annual sales.
Concerning Domty’s exports, El Damaty revealed that the company’s exports currently represent 6% of Domty’s total sales and are expected to rise to 1% by the end of 2018.
Meanwhile, “Domty has an ambitious plan to increase its exports,” according to El Damaty.
He continued that the most important markets that witness Domty’s exports are Jordan, Saudi Arabia, the United Arab Emirates (UAE), Libya, and Russia.
Furthermore, El Damaty said that the firm aspires to enter more export markets, especially after its board of directors approved the opening of a new branch of the company in Rwanda, pointing out that the company plans to enter many new countries in Africa, including Kenya.
Concerning the issue of new products, the vice chairperson of Domty said that the company will start its first bakery production line after Ramadan and will start the first production line of flavoured milk by the end of 2018.
Talking about the challenges that the food industry faces in Egypt, El Damaty said that the challenges are briefed in the Central Bank of Egypt (CBE)’s high interest rates, inflation, and the decline of purchasing power.
He stressed that the decision to float the pound was a late step, but a necessary one to reform the economy.
Concerning the effect of the pound’s flotation on the food industry sector, he said that at first, the effect was completely negative, as the sector imports most of its raw materials, which became more costly due to the dollar exchange rate, so the sector did not benefit from the flotation, but he maintained it was a necessary step.
He added that he thinks that, currently, the situation is improving.
On a side note, Domty announced earlier in a press statement that its exports in 2017 jumped 6.39%, to record EGP 142m of the firm’s total sales compared to EGP 83m during 2016.
Meanwhile, Domty’s total profit at the end of 2017 amounted to EGP 452.6m compared to EGP 335.5m in 2016.
Domty was founded in 1989 and specialises in the manufacture of cheese and dairy products. It added juice production in 2013. It dominates 42% of the local cheese market and 7% of the local juice market.