Obour Land records profits of LE295.3M in 2019

CAIRO – 28 January 2020: Obour Land for Food Industries (OLFI) recorded consolidated profits of LE 295.29 million during 2019, compared to LE 238 million in 2018, marking an increase of 24 percent.

The Company noted a spate filing to the Egyptian Exchange (EGX) that its net sales in 2019 jumped 8 percent, recording LE recorded EGP 2.587 billion; out of which LE 2.456 billion generated from white cheese sales and LE 125.7 million from the Juice & Milk segment.

As per gross profit, it hit LE 562.5 million during 2019, posting a y-o-y growth of 5%, translating into a gross profit margin of 21.7 percent, compared to 22.4 percent in FY18.
“The company managed to keep the gross profit margin of the full year in its targeted levels as planned by the management,” it noted.

Earnings before interest, taxes, depreciation and amortization (EBITDA) recorded an 11 percent y-o-y increase, to reach LE 412.8 million in 2019, yielding an EBITDA margin of 16 percent marking a 50bps increase compared to 2018.

“I am delighted to share with you our results for the full year of 2019 ended December 31, 2019, as Obour Land has proved resilient in a tough market due to lower consumption rates and new players entering the market. The Company succeeded to overcome these tough conditions as we achieved growth in revenues and sales volumes while maintaining margins in its targeted levels, “Vice Chairman of Obour Land Ashraf Hamed Sherif said.

“This is driven by continuing our strategic focus on sustainable growth, providing top quality products and managing the costs efficiently,” he added.

During the first half of 2019, Obour Land for Food Industries recorded a 10.4 percent increase in its consolidated profits, recording LE 127.26 million, compared to LE 115.18 million during the same half of 2019.

Obour Land operates in the food, beverage and tobacco sector with a focus on canned food and meat.