Burgerizzr profit rises to SAR 6.7M in H1 2024; Q2 at SAR 1.4M

Shatirah House Restaurant Co. (Burgerizzr) net profit more than doubled to SAR 6.7 million in the first half of 2024 from SAR 3.3 million in the year-earlier period.

The higher earnings were due to revenue rising nearly 10.7% year-on-year (YoY), driven primarily by higher average sales per branch and an increased customer base.

Additionally, gross profit rose 28.4% YoY, largely due to improved average sales per branch.

Gross profit margin increased to 32.2% in the current period from 27.7% last year, thanks to reduced food costs and higher expenses related to rent, utilities, and maintenance.

Financing costs fell by SAR 128,000, and losses from disposals of property and equipment declined by SAR 803,000. On the other hand, other revenues rose by SAR 282,000.

However, the company reported a 23% YoY increase in sales expenses to SAR 4.5 million amid higher delivery fees associated with increased contributions from electronic channels, including delivery services.

Administrative expenses also rose by SAR 3.6 million as salaries and other expenses increased in line with business growth.

The decrease in profit compared to last year is mainly due to a 0.44% decline in sales revenue, driven by reduced demand in the burger fast-food market in May. Measures taken improved performance in June.

Overall, profit decreased by 5% YoY due to lower sales and a reduced gross profit margin from 31.5% to 30.1%, alongside higher costs for food, rent, utilities, and maintenance.

Increased sales expenses by SAR 1.4 million and higher administrative expenses by SAR 2.1 million further contributed to the profit decline.

Offsetting factors included reduced financing costs by SAR 66,000, lower losses from asset disposals by SAR 1.1 million, and increased other revenues by SAR 148,000.

The decrease in profits during the current quarter compared to the year-earlier period was primarily due to a 7.3% decline in sales revenue, driven by reduced demand in the burger fast-food market in May.

Financing costs increased by SAR 78,000, losses from disposal of property and equipment rose by SAR 5,000, and other revenues decreased by SAR 23,000.

There was an 18.3% decrease in overall profit, largely attributed to lower sales. The gross profit margin decreased from 34.1% in Q1 2024 to 30.1% in the current period.

The second-quarter net earnings dropped 70% to SAR 1.4 million, compared with SAR 4.70 million a year earlier on lower sales revenue and gross profit.

Compared with the previous quarter, the earnings slid 70.3% from SAR 5.27 million in Q1 2024.

Shareholders’ equity, no minority interest, stood at SAR 70.38 million at the end of current period, compared to SAR 60.27 million a year earlier.

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