Egyptian mogul Safwan Thabet’s Juhayna reports $7.5 million in profit in Q1 2022

Juhayna Food Industries, an Egyptian dairy, juice, and cooking product manufacturer led by prominent businessman Safwan Thabet, is off to a great start this year with a stellar performance in the first quarter of 2022, after reporting a double-digit increase in earnings in 2021.

According to Mubasher, the Cairo-based consumer goods group reported a 15.5-percent increase in profit from EGP123 million ($6.55 million) in the first quarter of 2021 to EGP142 million ($7.56 million) in the first quarter of 2022, despite a rise in production costs caused by raw materials and an increase in operating expenses caused by higher distribution and administrative costs.

The group’s revenue increased by 29.1 percent during the period under review, from EGP1.86 billion ($99 million) to EGP2.4 billion ($127.8 million), driven by robust consumer demand in the packaged dairy, yogurt, and juice markets.

Juhayna is a family-owned company that produces, processes, and packages dairy, juice, and cooking products. It operates in five business segments in the food-processing and agro-allied industries.

Thabet, who founded the Egypt-based food products manufacturer nearly 38 years ago, presently owns a majority 50.07-percent stake in the group through Pharon Investments Limited, with the stake valued at $177.8 million.

Despite the difficulties in its operating environment, the company’s profit increased by double digits in the first quarter of this year, following an outstanding performance in 2021.

Juhayna’s profit increased by 23 percent, from EGP428 million ($23.15 million) in 2020 to EGP526 million ($28.45 million) at the end of 2021. The revenue increase from EGP7.4 billion ($400.3 million) to EGP8.8 billion ($476 million) fueled the strong earnings growth.

The group’s board of directors recommended a cash dividend distribution to shareholders of EGP188.3 million ($10.17 million) for 2021, owing to the company’s strong financial performance.