1Q24 Earnings Release

Cairo, Egypt | 30 May 2024

Juhayna Food Industries Reports 1Q24 Earnings

Juhayna records a massive 68% Y-o-Y increase in net revenue to EGP 5.8bn in 1Q24,
and a record-breaking increase in export sales by 175% to reach EGP 787 million

1Q24 Highlights
5,758mn 2,205mn, 38.3% 1,397mn, 24.3%
Net Revenue Gross Profit, margin EBITDA, margin

68% YoY 117% YoY,  8.6pps  136% YoY,  7.0pps

479mn, 8.3% 1,250mn 937mn, 16.3%

Net Profit, margin 31/3/2024 Net Debt SG&A, % of Sales

 41% YoY, ▼ -1.6pps  551% vs. 31/12/2023 78% YoY,  0.9pps YoY

Net Revenue By Segment

EGP mn 1Q24 1Q23 % Change
Dairy 2,561 1,771 45%
Fermented 1,587 848 87%
Juice 861 481 79%
Concentrates & Agri 734 251 192%
3rd Party Distribution 15 72 -79%
Total 5,758 3,423 68%

2%
7% 13%
14%
15%
44%
1Q23 52% 1Q24
25%
28%

Dairy Fermented Juice Concentrates&Agri 3rd Party Distribution

Dairy Fermented Juice Concentrates&Agri

1Q24 Earnings Release

1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

14, 000
Net Revenue
(EGP mn)
(Cairo, Egypt) — Juhayna Food Industries (JUFO.CA on the Egyptian
12, 000

10, 000

 68% Exchange), a leader in the Egyptian packaged dairy, yogurt and juice markets,
5,758 announced its audited consolidated results for 1Q24. The company achieved
8,0 00

net revenues of EGP 5.8bn, reflecting a massive growth of 68% in 1Q24. The
6,0 00

3,423
growth was mainly driven by accumulative price increases in 2023 of around
4,0 00

40%, noting that Juhayna increased their prices by a net of 20% in 2024.
2,0 00

Moreover, the export segment grew by 140% in USD terms which further
0

1Q23 1Q24
contributed to the tremendous revenue growth.
Gross Profit, Margin
The volatile economic landscape in Egypt and the unavailability of FX in
(EGP mn, %)
4,00 0 50. 0% beginning of 2024, led to a consumer shift towards lower-priced products.
3,50 0

29.7% 38.3% 45. 0%

However, Juhayna is well-positioned to capitalize on this trend due to its

diverse product range offering various price points to cater to different
40. 0%

3,00 0

2,205
35. 0%

2,50 0

117% 30. 0% consumer needs.

2,00 0 25. 0%

1,50 0

1,017
20. 0%

The double digit increase in volumes for fermented and juice products
compared to 1Q23 reflects the company's ability to meet consumer demand,
15. 0%

1,00 0

10. 0%

500

5.0 %
particularly during high-demand periods like Ramadan. Despite a slight
- 0.0 %

decline in dairy consumption year-on-year, Juhayna has maintained its

1Q23 1Q24 market share through brand loyalty, product range diversity, and innovation.
SG&A, Margin Furthermore, it is important to highlight that the recent price adjustments
(EGP mn, %) made in March 2024 demonstrate Juhayna's agility and proactive approach in
2,00 0 20. 00%
responding to market dynamics and aims to boost volumes going forward.
1,80 0

15.4% 16.3% 18. 00%

1,60 0

1,40 0
16. 00%

14. 00%
The increase in cost of goods sold (COGS) by 48% in 1Q24 was driven by
1,20 0

 78% 937
12. 00%
rising raw material prices, particularly raw milk and packaging materials. The
gross profit margin increased by 8.6pp in 1Q24, supported by the outstanding
1,00 0 10. 00%

526
800 8.0 0%

600 6.0 0%

profitability of the concentrates segment.

400 4.0 0%

The selling, general, and administrative (SG&A) margin increased by 0.9%

200 2.0 0%

- 0.0 0%

1Q23 1Q24 year-on-year in 1Q24, reaching 16.3%. This increase was due to the
company's ongoing marketing campaigns especially in Ramadan, increase in
EBITDA, Margin salaries and rise in distribution cost. Juhayna's commitment to controlling
(EGP mn, %) expenses and identifying cost-saving opportunities underscores its
dedication to maintaining profitability and driving growth in a challenging
250 0 30. 0%
economic environment.
24.3%
200 0
17.3% 25. 0%

Outstanding gross profit margin gains, along with enhanced margins for our
1,397 20. 0%
concentrate business resulted in a growth of 136% in EBITDA for 1Q24,
150 0

136% reaching EGP 1,397mn , with a margin of 24.3%.

15. 0%

100 0

592 10. 0%

500

5.0 %

0 0.0 %

1Q23 1Q24

1Q23
1Q24Earnings
EarningsRelease
Release
 1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

Net Profit, Margin

(EGP mn, %) During the first quarter of 2024, Juhayna reported a significant increase in net
profit, reaching EGP 479 million, reflecting a 41% year-on-year growth. This
100 0

9.9%
12. 0%

900
8.3%
800

41%
10. 0%

growth was achieved despite incurring investment losses of EGP 522 million
700

8.0 % during the same period. The company's net profit margin stood at 8.3%,
600

479 signaling our operational excellence in front of a challenging market

500 6.0 %

400
339 environment. The remarkable financial performance can be attributed to the
improved profitability in the concentrate segment and the growing global
4.0 %

300

demand for the company's products. Additionally, Juhayna's cost reduction

200

2.0 %

100

0 0.0 %
strategy and the establishment of strategic supplier relationships have played
1Q23 1Q24 a pivotal role in driving the substantial growth in net profits. It's important to
note that the company also recorded foreign exchange losses and tax
Export Sales, Growth settlements of EGP 359 million, which are reflected in the other
120 0
(EGP mn, %) comprehensive income statement.
100 0 175% The company experienced a significant surge in export sales across
787
800
Concentrates, Dairy, and Juice categories, achieving an impressive growth
600
rate of 175% in 1Q24, reaching EGP 787 million. Export sales now contribute
14% of the company's total revenues for 1Q24, a notable increase from 8.4%
400

286 in 1Q23. In USD terms, the annual growth rate reached 140% in 1Q24,
200

totaling USD 22.6 million. The remarkable growth in exports was primarily
0 fueled by concentrates exports, supported by strong partnerships with global
1Q23 1Q24 and local suppliers. This strategic focus not only bolstered revenue but also
helped mitigate challenges related to foreign exchange availability. Juhayna is
Export Sales, Growth
actively expanding its global presence and exploring new opportunities to
(USD mn, %)
further enhance its export segment, demonstrating a commitment to
40

140%
sustainable growth and market diversification.
35

30

22.6 Net debt saw a significant surge from EGP 192 million in FY23 to EGP 1.2
billion by the end of 1Q24, indicating a striking 551% increase. This upward
25

20

15

9.4 trajectory was primarily fueled by the accumulation of dollar-based payables

10

amidst 4Q23 due to the scarcity of foreign currency. However, with the
devaluation occurring in 1Q24, this issue was effectively addressed, enabling
5

us to promptly settle outstanding dues and fully leverage available banking

1Q23 1Q24
resources.
Net Debt, Inventory
(EGP mn, %) Juhayna allocated EGP 309mn towards CAPEX in 1Q24, primarily to serve the
company’s long term CAPEX plan which started in 2023, focusing on farming,
 551%  9%
manufacturing and distribution activities.
3,50 0

2,916 3,165 Our strong framework and strong governance practices that have been
3,00 0

2,50 0

developed over the past years, and the hard work of our experienced
1,250 management team, have enabled us to achieve great success. We are
2,00 0

1,50 0

1,00 0

500
192 confident that the Egyptian market will continue to recover, and we are proud
-
to have a strong brand and a longstanding relationship with the Egyptian
Net Debt Inventory consumer. We are looking forward to opening additional foreign markets and
expanding Juhayna’s global footprint.
FY23 1Q24

1Q24 Earnings Release

1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

1Q24 vs 1Q23 Market Shares

Plain Milk Juice

63% 30%
-1% +4%

Spoonable Yogurt Drinkable Yogurt

30% 45%
- -2%

Flavored Milk

52%
-3%

1Q24 Earnings Release

1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

Announcements / Segment Launch

Launch of Stirred Yogurt range – January 2024

The launch of stirred Yogurt by Juhayna represented a strategic move in alignment with the company's
dedication to providing health-conscious choices to consumers. Since its introduction in January 2024,
developed in collaboration with Juhayna's research and development team, this product has not only
altered the perception of yogurt consumption among the youth, shifting from sour-cutting yogurt to a
creamy texture, but also showcased Juhayna's hallmark of high quality and innovation. Available in
three enticing flavors (Plain, Light, and Sweetened) in convenient 105gm packages, stirred Yogurt
swiftly gained traction among consumers.

Drawing on the success of Juhayna's previous offerings, such as the creamy-textured fruit Yogurt range,
the company recognized an opportunity to diversify its product portfolio with the introduction of stirred
Yogurt. The market's enthusiastic response to this new range underscored its appeal and marked a
significant milestone. This accomplishment not only reinforced Juhayna's position as a key player in the
yogurt segment but also fueled growth within the broader yogurt market segment during 1Q24.

1Q24 Earnings Release

 1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

1Q24 Earnings call invite

Presentation:
The associated presentation and financial statements are on Juhayna Food
Industries website
https://www.juhayna.com/en/?page_id=8351 under the Investor Relations section.

Telephone conference hosted by EFG Hermes on June 4th, 2024, at 4:00

pm Cairo Local Time (CLT).
A telephone conference for analysts and investors hosted by EFG Hermes will
be held in English on Tuesday, 4th of June 2024; at 4:00 pm Cairo Local Time.
Managing Director for Centralized Functions Mohamed Sultan and Head of
Investor Relations Karim Ibrahim will present 1Q 2024 results and will be
available to answer questions. A registration is not required.

Dial-in details are as follows:

Click here for webinar link

1Q24 Earnings Release

1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

Income Statement
1Q24 1Q23

Net sales 5 758 301 967 3 423 285 226

Cost of sales (3 553 685 147) (2 405 946 442)
Gross profit 2 204 616 820 1 017 338 784

Other operating income 100 060 968 47 103 303

Selling and Marketing expenses ( 797 051 357) ( 434 240 637)
General and administrative expenses (140 023 959) (91 555 064)
Impairment loss of trade and other receivables
( 818 822) 203 045
/(Reverse)
Other expenses (53 700 839) (39 721 427)
Results from operating activities 1 313 082 811 499 128 004

Share of (Loss) /profit of Equity accounted

(199 065) 257 720
investees,net of tax
Net finance (cost) (76 024 403) (74 831 645)
Loss on investment at FV through profit or loss (522 059 902) -
Net profit for the period before income tax 714 799 441 424 554 079

Income tax expense (236 054 471) (84 733 617)

Net profit for the period after tax 478 744 970 339 820 462
Distributed as follows
Owners of the company 478 333 270 339 217 994

Non-controlling interests 411 700 196 378

478 744 970 339 414 372
Earning per share for the period (L.E /share ) 0.51 0.36

FY21
1Q24Earnings
Earnings
Release
Release
1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

Balance Sheet
1Q24 FY23
Assets
Non-current assets
Property, plant and equipment 3 118 569 353 3 077 685 183
Projects under construction 490 292 143 299 334 840
Biological assets 320 707 079 305 114 220
Equity accounted investees 15 471 005 15 670 070
Right of use assets 83 859 734 38 966 498
Goodwill 97 092 890 97 092 890
Deffered tax assets 27 119 952 -
Other long term asset 705 261 707 329
Non-current assets 4 153 817 417 3 834 571 030

Current assets
Biological assets 35 389 223 29 465 780
Inventories 3 186 487 864 2 783 515 178
Trade and other receivables 1 906 303 394 834 918 362
Due from related party 7 288 889 2 760 164
Cash and cash equivalents 786 297 304 1 093 526 328
PPE held for sale 1 576 957 1 610 291
Current assets 5 923 343 631 4 745 796 103
Total assets 10 077 161 048 8 580 367 133

Equity
Issued and paid-up capital 941 405 082 941 405 082
Legal reserve 794 531 918 742 112 963
General reserve - issuance premium 330 920 428 330 920 428
Retained earnings 2 300 456 664 2 233 885 644
Total equity attributable to owners of the company 4 367 314 092 4 248 324 117
Non-controlling interest 1 856 168 1 444 468
Total equity 4 369 170 260 4 249 768 585

Non-current liabilities
Loans 81 228 442 90 395 408
Lease contract liabilities 94 470 720 53 847 845
Deferred tax liabilities 362 726 736 321 767 403
Deferred income 4 857 455 6 023 113
Non-current liabilities 543 283 353 472 033 769

Current liabilities
Provisions 178 915 345 183 529 210
Bank credit facilities 1 877 566 307 1 096 229 656
Creditors and other credit balances 2 604 448 720 2 261 080 629
Due to related parties - 17 871 750
Income tax liabilities 404 067 114 177 047 207
Lease contracts liabilities 53 685 289 57 958 125
Loans 39 538 209 57 204 336
Deferred income 6 486 451 7 643 866
Current liabilities 5 164 707 435 3 858 564 779
Total liabilities 5 707 990 788 4 330 598 548
Total equity and total liabilities 10 077 161 048 8 580 367 133

FY21
1Q24Earnings
Earnings
Release
Release
1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

Cash Flow Statement

1Q24 1Q23
Cash flows from operating activities L.E. L.E.
Net profit for the year before income tax and minority interest share in
714 799 441 424 147 989
profits
Adjustmentsfor:
PPE depreciation 77 797 972 72 195 402
Capital (gain) (588 338)
Amortization of asset right of use (lands) 2 068
Amortization of Bioloigical Wealth 8 274 798 7 924 782
Amortization of plant wealth (productive) 493 227 338 412
Cost of drying period 35 234 769 16 300
Capitalized animal wealth (3 104 200) (22 698 884)
Share of loss/profit equity accounted investees (257 720)
Amortization of right of use 3 549 147 3 452 236
Lease liabilities interest 1 758 272 979 969
Biological wealth due to newborn (7 336 200) (4 963 800)
Gain (Loss) from selling of animal wealth 12 454 294 1 904 766
Investment Loss 522 059 902 -
Foreign currencies exchange differences 27 500 005
Interest income (10 536 340) (3 573 141)
Finance interests & expenses 86 560 743 49 924 812
1 441 417 487 556 893 196
Changes in:
Inventories (402 972 686) (636 693 405)
Biological assets- Existing Agriculture (5 923 443) 1 965 949
Biological assets- calves
Trade and other receivables (1 071 385 031) (241 623 726)
Due from related parties (22 400 475) (2 048)
Creditors & other credit balances 281 327 523 668 208 848
Provisions (4 613 864) (5 220 770)
Net cash flows from operating activities 215 449 511 343 528 044

Dividends paid to employees

Income tax paid (16 525 005) (1 028 138)
198 924 506 342 499 906
Cash flows from investing activities
Acquisition of PPE & projects under construction (309 114 417) (79 704 936)
Held for sale 33 334
Herd plant 236 540 892 592
Proceeds from sale of PPE (1 768 787)
Proceeds from plant wealth unproductive 524 150 1 869 532
Payment to plant wealth unproductive 15 297 837 10 301 415
Payments to invest in biological assets (13 236 487) (14 531 059)
Proceeds from credit interests 10 536 340 3 573 141
Proceeds from the compensation of calves death 4 674 336 1 300 361
Paid for investment at F.V through P/L (843 171 021) -
Proceeds from investment at F.V through P/L 321 111 119 -
Net cash flows (used in) investing activities (813 108 269) (78 067 742)
Cash flows from financing activities
Proceeds from credit facilities 781 336 651 (77 895 769)
(Payments for) financial lease contract liabilities (13 850 616) (8 535 490)
Proceeds from bank loans -
(Payments for) bank loans (29 156 166) (13 053 000)
Finance interests & expenses paid (86 560 743) (49 924 812)
Dividends paid to shareholders
Net cash flows from (used in) financing activities 651 769 126 (149 409 071)
Change in cash & cash equivalents during the period 37 585 363 115 023 094
The effect of foreign exchange difference (344 814 387) (27 500 005)
Cash & cash equivalents at 1 January 1 093 526 328 294 504 052
Cash & cash equivalents at 31 March 786 297 304 382 027 141

FY21
1Q24Earnings
Earnings
Release
Release
1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

Other Comprehensive Income Statement

1Q24 1Q23

Net profit for the period after tax 478 744 970 339 414 372
Foreign exchange gain/(Loss) (344 814 387) -
Related tax (14 528 908)
Total other comprehensive income 119 401 675 339 414 372
Distributed as follows
Parent owners of the company 118 989 975 339 217 994
Non-controlling interests 411 700 196 378
119 401 675 339 414 372

FY21
1Q24Earnings
Earnings
Release
Release
1Q24 Earnings Release
Cairo, Egypt | 30 May 2024

About Juhayna Food Industries

Juhayna Food Industries is a leading Egypt-based manufacturer specialized in the

production, processing and packaging of dairy, juice, yogurt and cooking products.

Since its founding in 1983, it has secured a frontrunner position in Egypt and has expanded
its presence, through exports, to international markets, a feat made possible through its firm
commitment to delivering a wide range of high-quality, healthy, and safe products that have
become trusted household names.

Today, with four fully operational facilities, a vast network of distribution centers serving
more than 136,000 retail outlets nationwide, and a 500-feddan, fully-owned dairy farm
covering a sizeable portion of the company’s raw milk needs, Juhayna continues to raise the
benchmark for premium quality Egyptian manufactured products.

Forward Looking Statements

Statements contained in this Business Review that are not historical facts are based on
current expectations, estimates, projections, opinions and beliefs of Juhayna Food
Industries. Such statements involve known and unknown risks, uncertainties and other
factors, and undue reliance should not be placed thereon. Certain information contained
herein constitutes “targets” or “forward-looking statements,” which can be identified by the
use of forward-looking terminology such as “may,” “will,” “seek,” “should,” “expect,”
“anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or
other variations thereon or comparable terminology. Actual events or results or the actual
performance of Juhayna Food Industries may differ materially from those reflected or
contemplated in such targets or forward-looking statements. The performance of Juhayna
Food Industries is subject to risks and uncertainties

Investor Contacts
Karim Ibrahim
Head of Investor Relations
karim.ibrahim@juhayna.com
Tel : +202 38271858

1Q24 Earnings Release