Egyptian mogul Safwan Thabet’s Juhayna says price increases caused revenue to exceed $270 million in H1 2022

Juhayna Food Industries, an Egyptian dairy, juice, and cooking products manufacturer run by well-known businessman Safwan Thabet, has revealed that a number of factors, including price increases implemented across its core segments during the period under review, were responsible for the group’s double-digit increase in revenue above $270 million in the first half of the year.

In its recently released financial statement, the group reported that its consolidated sales of packaged dairy, yogurt, and juice rose by 26 percent in the first half of 2022, from EGP4 billion ($214 million) to EGP5.17 billion ($270 million).

The impressive sales growth can be linked to healthy volume increases in the dairy and juice sectors, which were stimulated by a strong post-pandemic consumer demand, in addition to the boost that it received from the price increases implemented across its core segment.

Despite the double-digit increase in sales, Juhayna’s profit after tax increased marginally by one percent from EGP316 million ($16.5 million) to EGP318.9 million ($16.7 million) during the period, driven by a rise in raw material prices and the depreciation of the Egyptian pound.

In addition to pressures from raw materials and the depreciation of the Egyptian pound, the group’s profits also suffered from higher operating costs, as marketing and administrative costs increased above EGP821 million ($42.9 million) and EGP153 million ($8 million), respectively.

The group had a strong start in 2022, according to Niels Thomsen, CEO of Juhayna, who noted that Juhayna was able to successfully navigate challenges in its operating environment as it continued to drive impressive growth across all its operating segments.

He added that the group will continue to provide exceptional value to shareholders and larger communities in the future, as it drives solid growth across all its business lines.

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

Thabet, a leading Egyptian businessman who founded the Egypt-based food products manufacturer nearly 38 years ago, owns a majority 50.07-percent stake in the company through Pharon Investments Limited, which is presently worth $177 million.