Jahez profit soars to SAR 125.3M in 2023

Jahez International Company for Information System Technology reported a profit surge to SAR 125.3 million in 2023, compared to SAR 59 million in 2022.

The strong profit was propelled by an 11.4% year-on-year (YoY) rise in net revenue to SAR 1.78 billion in 2023.

Total shareholders’ equity, after minority interest, rose to SAR 1.15 billion as of Dec. 31, 2023, from SAR 1 billion in the prior-year period.

The topline growth was fueled by a 29% YoY rise in commission revenue to SAR 689.4 million.

The delivery revenue also grew by 5.5% compared to 2022, mainly on order growth in Saudi Arabia and a discounted revenue per order in line with the market trends and expansion strategy in GCC.

Further, Jahez recorded SAR 186.4 million in other revenues, an increase of 26% YoY.

Meanwhile, Jahez’s delivery platform outside Saudi Arabia incurred a net loss of SAR 97.2 million in 2023, hurt by the company’s expansion strategies and the high cost related to gaining a better market share in new markets. Delivery platform in Saudi Arabia logged a net profit of SAR 258.5 million, up 33.2% YoY.

The logistics activity narrowed 2023 net losses by 95.2% YoY to SAR 5.9 million.

Jahez Group’s investment in other activities led to net losses of SAR 36.7 million, mainly due to the additional costs associated with growing the Cloud Kitchens footprint locally as well as expanding the Cloud Shelfing business and the market share in the point of sales business.

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