The Arabian Food Industries Company – Domty has reported a 10% year-on-year (y-o-y) increase of EGP 31.7m in its net profit for the second quarter (Q2) of 2020, after it achieved sales of EGP 710.9m.
Commenting on the Q2 results, Domty CEO for Commercial Affairs Ahmed El Kattan said that Domty was able to achieve the growth despite the challenges of the novel coronavirus (COVID-19).
El Kattan said, “We are also happy to achieve a sales growth of 12% in the first half of the year, which reflects the strength of the company in implementing the 2020 plans, and the determination of the entire team to overcome all the difficulties facing the entire market.”
Domty continues to develop local market sales of its carton-packed cheese, particularly the Domty Plus family, which witnessed over 35% growth in the first half (H1) of the year compared to the same period in 2019.
This increase compensates for the decline in the governmental sales channel at the Ministry of Supply and Internal Trade, that is witnessing a significant volume decline.
“Domty also continues to develop the sales of the fresh cheese segment, especially mozzarella, and despite the drop in the tourism sales channel during Q2 of 2020, the team was able to fully utilise the current production capacity during this period,” El Kattan said, “We are ready now to inject more into the market after operating a new mozzarella line in the second half of August.”
The company was able to achieve a growth rate of 84% y-o-y in its bakery segment, despite the closure of schools and universities and the imposition of a curfew during Q2 of 2020. Despite the decrease of over 20% in the juice market in Q2 of 2020, juice sales decreased by only 3% in this period. The only slight decline reflects the company’s ability to deal with market variables in times of crisis.
El Kattan emphasised that the company’s management is currently working on implementing a business plan aimed at reducing sales/operating expenses. This is working towards gradually improve the profit margins over Q3 and Q4 of the current year.