Jahez net profit falls 32% to SAR 42.7M in H1 2024

Jahez International Company for Information System Technology reported a net profit of SAR 42.7 million for the first half of 2024, down 32% from SAR 62.7 million a year earlier.

This was mainly driven by the geographic expansion and strategic investments in new verticals. The delivery platforms – Saudi Arabia segment recorded a net profit of SAR 124.3 million compared to SAR 115.5 million in H1 2023, due to the growth in revenues and constant control of costs.

In addition, the delivery platforms – non-Saudi segmentrecorded net losses of SAR 47.7 million, mainly due to higher volumes from the full-scale operations in Kuwait in 2024 compared to partial operations in 2023. This was coupled with a material enhancement in unit economics, including enhanced revenue per order and cost optimization initiatives

Further, the logistics segment's net losses increased to SAR 14.4 million from SAR 10.6 million in H1 2023, due to the increase of order volume, operational cost, and expected credit loss

Meanwhile, the group’s other segment reported net losses of SAR 19.1 million, mainly due to changes in the fair value of the Red Color minority investment and the ramp-up of operations in new verticals, including Marn, Sol, and Co.

Total shareholders’ equity, excluding minority interest, rose to SAR 1.13 billion as of June 30, 2024, from SAR 1.07 billion a year earlier.

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