Horizon Food posts 29% profit rise to SAR 4.7 mln in H1 2022; Q2 at SAR 2.9 mln

Horizon Food Co., which will list shares soon on Nomu-Parallel Market, reported a 29% jump in H1 2022 net profit to SAR 4.7 million, compared to SAR 3.6 million in the year-earlier period.

The profit growth was spurred by a 62% year-on-year (YoY) rise in revenue. The company also incurred a SAR 1 million loss from the disposal of property, plant and equipment (PP&E) in the first half of 2021.

On the other hand, general and administrative expenses (G&A) rose, compared to H1 2021.

Operating profit margins contracted to 14% in the current period, from 17% in H1 2021. Horizon Food also recorded expected credit losses of SAR 380,000.

In Q2 2022, net profit jumped 69% YoY to SAR 2.9 million, as revenue climbed 60%.

Operating profit margins expanded to 18% in Q2 2022, from 17% in the year-earlier period.

G&A also increased in the current quarter, compared to Q2 2021.

Shareholders’ equity, no minority interest, reached SAR 88.892 million by the end of the six-month period, up from SAR 28.397 million a year earlier.

The leading livestock importer and fresh meat provider increased its capital on Aug. 14, 2021, from SAR 31.08 million to SAR 80 million.

Tadawul-listed Tabuk Agricultural Development Co. (TADCO) currently owns 50% of Horizon Food. Its ownership in the company will decrease to 40% after Horizon’s initial public offering (IPO).

Cash balance reached SAR 2.7 million as of June 30, 2022. Net flows from operating activities stood at -SAR 4.4 million. Net flows from investment and financing activities also reached -SAR 10.8 million and -SAR 0.01 million.

Revenue from chicken and meat Shawarma reached SAR 29.77 million and SAR 4.41 million in H1 2022. Revenue from Döner Shawarma stood at SAR 1.53 million by the end of the same period.

By region, revenue from the Eastern Province hit SAR 16.16 million. The company also recorded revenue of SAR 11.07 million and SAR 1.60 million from the Central Province and Western Province, respectively. Revenue from the Southern Province and Northern Province reached SAR 0.70 and SAR 0.62 million, respectively. Revenue from the GCC countries came in at SAR 5.55 million.