FY23 Earnings Release

Cairo, Egypt | 8 April 2024

Juhayna Food Industries Reports FY23 Earnings

Juhayna records a 42% y-o-y increase in net revenue to EGP 16.1bn in FY23, and a
record breaking 60% y-o-y increase in net income to EGP 1.0bn in FY23

4Q23 Highlights
4,474mn 1,222mn, 27.3% 649mn, 14.5%
Net Revenue Gross Profit, margin EBITDA, margin

40% YoY 51% YoY,  2.0pps  39% YoY, ▼- 0.04pps

143mn, 3.2% 192mn 639mn, 14.3%

Net Profit, margin 31/12/2023 Net Debt SG&A, % of Sales

▼ -13% YoY, ▼ -1.9pps ▼ -71% YoY 47% YoY,  0.75pps YoY

FY23 Highlights
16,128mn 4,222mn, 26.2% 2,222mn, 13.8%
Net Revenue Gross Profit, margin EBITDA, margin

42% YoY 45% YoY,  0.6pps  57% YoY,  1.3pps

1,021mn, 6.3% 192mn 2,322mn, 14.4%

Net Profit, margin 31/12/2023 Net Debt SG&A, % of Sales

 60% YoY,  0.7pps ▼ - 71% YoY 26% YoY, ▼ -1.8pps YoY

Net Revenue By Segment

EGP mn 4Q23 4Q22 % Change FY23 FY22 % Change
Dairy 2,479 1,907 30% 8,528 6,082 40%
Fermented 923 622 49% 3,541 2,748 29%
Juice 809 494 64% 2,740 1,913 43%
Concentrates & Agri 199 129 54% 1,032 390 164%
3rd Party Distribution 64 51 25% 287 230 24%
Total 4,474 3,203 40% 16,128 11,364 42%

FY23 Earnings Release

FY23 Earnings Release
Cairo, Egypt | 8 April 2024

30, 000

Net Revenue (Cairo, Egypt) — Juhayna Food Industries (JUFO.CA on the

25, 000
(EGP mn) Egyptian Exchange), a leader in the Egyptian packaged dairy,
 42% yogurt and juice markets, announced its audited consolidated results
20, 000

 40%
16,128 for FY23. The company achieved net revenues of EGP 16.1bn,
11,634
15, 000

reflecting a growth of 42% in FY23. Whereas the company achieved

net revenues of EGP 4.5bn, reflecting a growth of 40% in Q4 23. The
10, 000

3,203 4,474
5,0 00

growth was mainly driven by an increase in pricing, noting that

0
Juhayna increased their prices by around 40% throughout 2023.
4Q22 4Q23 FY22 FY23 The current high inflation in Egypt is impacting consumer purchasing
Gross Profit, Margin power, leading to reduced consumption and a shift towards lower-
(EGP mn, %) priced products. Juhayna is well-positioned to capitalize on this trend
6,00 0

26.2%
35. 0%

due to its diverse product range offering various price points to cater
27.3% 25.6% to different consumer needs. Juhayna is confident that its strong
5,00 0
25.3% 4,222
30. 0%

4,00 0
25. 0%

brand loyalty will help retain customers even in challenging economic

2,905
20. 0%
conditions.
3,00 0

15. 0%

Despite stable volumes for fermented and juice products compared to

2,00 0

1,222 10. 0%

1,00 0
811 Q4 22, there was a slight decline in dairy consumption year-on-year.
5.0 %

However, it is evident that Juhayna managed to maintain its market

share through brand loyalty, product range diversity, and focus on
- 0.0 %

4Q22 4Q23 FY22 FY23 innovation.

SG&A, Margin
(EGP mn, %) The increase in cost of goods sold (COGS) by 41% in FY23 and 36%
in 4Q23 was driven by rising raw material prices, particularly raw milk
14.3% 16.2% 14.4% and packaging materials. The gross profit margin increased by 0.6pp
5,00 0

16. 00%

4,50 0

13.5% 14. 00%

in FY23 and 2pp in 4Q23, supported by the outstanding profitability of

4,00 0

12. 00%
3,50 0

the concentrates segment.

2,322
3,00 0
10. 00%

1,836
2,50 0

8.0 0%

2,00 0
The selling, general, and administrative (SG&A) margin decreased by
6.0 0%

1,50 0

1.8% year-on-year in FY23, reaching 14.4%. This reduction was due

1,00 0

433 639 4.0 0%

500
to the company's ongoing efforts in cost optimization, savings on
2.0 0%

marketing expenses, and improved distribution efficiency. Juhayna

0.0 0%

4Q22 4Q23 FY22 FY23 remains committed to controlling expenses and seizing cost-saving
opportunities.
EBITDA, Margin Outstanding gross profit margin gains and savings on SG&A, along
(EGP mn, %) with enhanced margins for our concentrate business resulted in a
400 0 14.5% 14.5% 13.8% 16. 0%

350 0
12.5% 14. 0%
growth of 57% and 39% in EBITDA for FY23 and 4Q23, reaching
300 0 12. 0%
EGP 2,222mn and EGP 649mn, with a margin of 13.8% and 14.5%,
250 0 2,222 10. 0% respectively.
200 0 8.0 %

1,415
150 0 6.0 %

649
466
100 0 4.0 %

500 2.0 %

0 0.0 %

4Q22 4Q23 FY22 FY23

1Q23
FY23Earnings
EarningsRelease
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 FY23 Earnings Release
Cairo, Egypt | 8 April 2024

Net Profit, Margin In terms of net profit, Juhayna achieved a record high EGP 1.0bn in
200 0
(EGP mn, %) 10. 0%
FY23, increasing by 60% y-o-y. This growth is attributed to enhanced
180 0 9.0 %
profitability in the concentrate business and rising demand worldwide.
160 0

6.3%
8.0 %

Moreover, the growth occurred despite a net FX loss of EGP 279mn

140 0

5.1% 5.6% 7.0 %

(in 4Q23). Juhayna’s supply chain, its strategic relationships with its
120 0

1,021 6.0 %

suppliers, local and global partners, in addition to the company's cost

100 0

3.2% 638
5.0 %

800 4.0 %

reduction strategy all contributed to this outstanding growth.

600 3.0 %

400

164 143 2.0 %

The company experienced a notable surge in export sales

200 1.0 %

0 0.0 %
(Concentrates, Dairy and Juice), achieving a remarkable growth rate
4Q22 4Q23 FY22 FY23 of 137%, reaching EGP 1.2bn in FY23. In 4Q23 export sales grew by
41% y-o-y to reach EGP 240mn. Export sales accounted for 7.3% of
Export Sales, Growth the company's total revenues for the full year vs. 4.3% in FY22, and
120 0
(EGP mn, %) 1,171 5.4% in 4Q23, compared to 5.3% in 4Q22. In US dollars, annual
growth rate reached is 51% for FY23, and 7% for 4Q23. The growth in
41% 137%
exports was primarily driven by concentrates exports, which, in
100 0

800

addition to our long-standing relationships with global and local

600
495 suppliers, played a vital role in mitigating the challenges related to FX
availability. Moreover, Juhayna is growing its footprint and is actively
240
400

171 seeking additional opportunities to further expand its export segment.

200

0
Net debt decreased from EGP 673mn Egyptian pounds in 4Q22 to
4Q22 4Q23 FY22 FY23 EGP 192mn at the end of 4Q23, representing a 71% decrease. This
decrease was primarily driven by accumulation of dollar-based
Export Sales, Growth payables amid FX shortages and not fully utilizing bank facilities.
(USD mn, %)
 7% 51% Juhayna allocated EGP 561mn towards CAPEX in FY23, primarily to
38
serve the company’s long term CAPEX plan which started in 2023,
40

35

30
25.2 focusing on farming, manufacturing and distribution activities.
25

20

Our strong framework and strong governance practices that have

7.3 7.8
15

10
been developed over the past years, and the hard work of our
5

experienced management team, have enabled us to achieve great

success. We are confident that the Egyptian market will continue to
0

4Q22 4Q23 FY22 FY23 recover, and we are proud to have a strong brand and a longstanding
Net Debt, Inventory relationship with the Egyptian consumer. We are looking forward to
(EGP mn, %) opening additional foreign markets and expanding Juhayna’s global
footprint.
▼ -71%  61%
3,00 0 2,784
2,50 0

2,00 0
1,726
1,50 0

1,00 0
673
500
192
-

Net Debt Inventory

FY22 FY23

FY23 Earnings Release

FY23 Earnings Release
Cairo, Egypt | 8 April 2024

FY23 Volume Market Shares

Plain Milk Flavored Milk

64% 57%
+1.6% 0.7%

Spoonable Yogurt Drinkable Yogurt

30% 48%
+0.3% -0.4%

Juice

28%
+1.0%

FY23 Earnings Release

FY23 Earnings Release
Cairo, Egypt | 8 April 2024

Announcements / Segment Launch

Launch of Fruits Yogurt range – August 2023

The introduction of the Fruits Yogurt by Juhayna was a strategic decision in line
with the company's commitment to offering healthy options to consumers. Launched
in August 2023 in collaboration with Juhayna's research and development team, this
product exemplifies the high-quality and innovative approach that Juhayna is known
for. Comprising four different fruit flavors (Mango, Peach, Strawberry, Mixed Berries)
in 105gm packages, the Fruits Yogurt quickly gained traction in the market.
Building on the success of Juhayna's previous yogurt offerings, such as the Greek
Yogurt range, the company saw an opportunity to expand its product line with the
introduction of the Fruits Yogurt range. The market response to this new range was
overwhelmingly positive, with the Fruits Yogurt capturing a remarkable 20% market
share within the first 3 months of its launch. This achievement not only solidified
Juhayna's position in the yogurt segment but also contributed to the growth of the
Yogurt market segment in Q4 2023.

FY23 Earnings Release

FY23 Earnings Release
Cairo, Egypt | 8 April 2024

Income Statement
FY2023 FY2022

Net sales 16 128 101 761 11 363 960 170

Cost of sales (11 906 411 622) (8 458 554 544)
Gross profit 4 221 690 139 2 905 405 626

Other operating income 178 863 933 122 415 644

Selling and Marketing expenses (1 933 987 009) (1 544 969 079)
General and administrative expenses (388 147 620) (286 403 392)
Impairment loss of trade and other receivables /(Reverse) 5 971 372 (13 140 483)
Other expenses (282 461 208) (158 362 348)
Results from operating activities 1 801 929 607 1 024 945 968

Share of (Loss) /profit of Equity accounted investement of

( 1 256 023) 1 809 251
tax
Net finance (cost) ( 320 893 260) ( 123 313 682)
Loss on investment at FV through profit or loss ( 115 108 535) -
Net profit for the year before income tax 1 364 671 789 903 441 537

Income tax expense ( 343 211 571) ( 265 442 589)

Net profit for the year after tax 1 021 460 218 637 998 948

Distributed as follows

Owners of the company 1 020 909 888 637 721 335

Non-controlling interests 550 330 277 613

1 021 460 218 637 998 948

Earning per share for the year (L.E /share ) 0.98 0.63

FY21
FY23Earnings
EarningsRelease
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FY23 Earnings Release
Cairo, Egypt | 8 April 2024

Balance Sheet
FY2023 FY2022
Assets
Non-current assets
Property, plant and equipment 3 077 685 183 3 007 277 888
Projects under construction 299 334 840 127 380 566
Biological assets 305 114 220 261 791 331
Equity accounted investees 15 670 070 16 926 093
Right of use assets 38 966 498 47 182 377
Goodwill 97 092 890 97 092 890
Other asset 707 329 715 600
Non-current assets 3 834 571 030 3 558 366 745

Current assets
Biological assets 29 465 780 20 276 099
Inventories 2 783 515 178 1 725 513 368
Trade and other receivables 834 918 362 642 632 203
Due from related party 2 760 164 559 970
Cash and cash equivalent 1 093 526 328 294 504 052
PPE held for sale 1 610 291 1 942 496
Current assets 4 745 796 103 2 685 428 188
Total assets 8 580 367 133 6 243 794 933

Equity
Issued and paid up capital 941 405 082 941 405 082
Legal reserve 742 112 963 719 145 789
General reserve - issuance premium 330 920 428 330 920 428
Retained earnings 2 233 885 644 1 418 366 451
Total equity attributable to owners of the company 4 248 324 117 3 409 837 750
Non-controlling interest 1 444 468 894 422
Total equity 4 249 768 585 3 410 732 172

Non-current liabilities
Loans 90 395 408 78 951 620
Lease contract liabilities 53 847 845 80 440 307
Deferred tax liabilities 321 767 403 304 602 189
Other liabilities - 297 878
Deferred income 6 023 113 -
Non-current liabilities 472 033 769 464 291 994

Current liabilities
Provisions 183 529 210 78 789 406
Bank credit facilities 1 096 229 656 707 922 331
Creditors and other credit balances 2 261 080 629 1 340 285 565
Due to related party 17 871 750 -
Income tax payable 177 047 207 87 586 989
Lease contract liabilities 57 958 125 30 742 133
Loans 57 204 336 123 444 343
Deferred income 7 643 866 -
Current liabilities 3 858 564 779 2 368 770 767
Total liabilities 4 330 598 548 2 833 062 761
Total equity and total liabilities 8 580 367 133 6 243 794 933

FY21
FY23Earnings
EarningsRelease
Release
 FY23 Earnings Release
Cairo, Egypt | 8 April 2024

Cash Flow Statement

2023 2022
Cash flows from operating activities
Net profit for the period before income tax and minority interest share in profits 1 364 671 789 903 441 537
Adjustmentsfor:
PPE depreciation 289 525 408 301 215 747
Capital (gain) ( 2 250 345) ( 5 514 826)
Amortization of asset right of use (lands) 8 271 8 271
Amortization of Bioloigical Wealth 31 854 996 30 466 088
Amortization of plant wealth (productive) 1 406 006 515 184
Loss from selling and death of animal wealth & drying period 38 518 126 23 854 054
Capitalized animal wealth ( 107 938 902) ( 59 574 426)
Share of loss/profit equity accounted investees 1 256 023 ( 1 809 250)
Amortization of right of use 7 835 388 13 920 698
Lease liabilities interest 3 342 389 5 607 128
Biological wealth due to newborn ( 18 869 300) ( 17 834 500)
Gain from selling and death of animal wealth & drying period ( 18 942 275) ( 199 225)
Investment Loss 115 108 535 -
Foreign currencies exchange differences 163 778 368 51 509 327
Interest income ( 33 980 381) ( 32 096 244)
Finance interests & expenses 191 095 272 98 293 471
2 026 419 368 1 311 803 035
credit interest collection
Finance interests & expenses paid
Changes in:
Inventories ( 1 058 001 809) ( 846 247 280)
Biological assets- Existing Agriculture ( 9 179 408) ( 9 587 038)
Biological assets- calves ( 10 273) -
Trade and other receivables ( 225 982 559) ( 312 103 191)
Due from related parties 15 671 556 ( 557 004)
Creditors & other credit balances 989 940 736 600 703 706
Provisions 104 739 999 8 710 485
Net cash flows from operating activities 1 843 597 609 752 722 713

Dividends paid to employees ( 41 212 761) ( 65 943 677)

Income tax paid ( 202 889 739) ( 227 919 133)
1 599 495 109 458 859 903
Cash flows from investing activities
Acquisition of PPE & projects under construction ( 561 472 449) ( 202 642 510)
Held for sale 332 205 ( 335 069)
Herd plant ( 25 169 717) ( 19 692 568)
Proceeds from sale of PPE 29 040 869 10 851 789
Proceeds from plant wealth unproductive 25 974 936 18 431 705
payment to plant wealth unproductive ( 3 947 238) 3 350 158
Payments to invest in biological assets ( 39 375 650) -
Proceeds from credit interests 33 980 381 32 096 244
Proceeds from the compensation of calves death 6 517 050 4 271 181
Paid for investment at F.V through P/L ( 253 309 040) -
Proceeds from investment at F.V through P/L 138 200 504 -
Net cash flows (used in) investing activities (649 228 151) (153 669 071)
Cash flows from financing activities
Proceeds from credit facilities 388 307 325 434 691 568
(Payments for) financial lease contract liabilities ( 2 338 367) ( 31 334 382)
Proceeds from bank loans 77 733 022 -
(Payments for) bank loans ( 118 862 262) ( 199 483 703)
Finance interests & expenses paid ( 191 095 272) ( 98 293 471)
Dividends paid to shareholders ( 141 210 761) ( 517 772 795)
Net cash flows from (used in) financing activities 12 533 685 (412 192 783)
Change in cash & cash equivalents during the period 962 800 643 (107 001 951)
The effect of foreign exchange difference (163 778 368) (51 509 327)
Cash & cash equivalents at 1 January 294 504 052 453 015 330
Cash & cash equivalents at 31 December 1 093 526 328 294 504 052

FY21
FY23Earnings
EarningsRelease
Release
FY23 Earnings Release
Cairo, Egypt | 8 April 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
[email protected]

Tel : +202 38271858

FY23 Earnings Release