Nofoth Food posts 24% profit jump to SAR 15.4 mln in H1 2022; Q2 at SAR 5.6 mln

Nofoth Food Products Co., which will list shares on Nomu-Parallel Market soon, reported a 24% rise in H1 2022 net profit to SAR 15.4 million, compared to SAR 12.4 million a year earlier.

The growth was spurred by a 68% year-on-year (YoY) rise in revenue during the current period. Gross profit margins (GPM) expanded to 53% from 47% in the first half of 2021. The food retailer also incurred losses from an acquisition in H1 2021.

The higher profit came despite increased administrative and marketing expenses, finance costs Zakat provisions. This was paired with a decline in other income.

Net profit margins decreased to 11% in H1 2022, from 15% in the prior-year period.

The second-quarter net profit climbed 19% to SAR 5.6 million, from SAR 4.7 million in Q2 2021, driven by a 59% YoY surge in revenue. GPM rose to 51%, from 47% in Q2 2021. Nofoth also reported better other income during the three-month period.

This came despite an increase in administrative and marketing expenses, Zakat provisions and finance costs.

Total shareholders’ equity, no minority interest, rose to SAR 52.863 million as of June 30, 2022, compared to SAR 38.691 million in the year-earlier period.

The food retailer’s first-half revenue from application clients reached SAR 56.31 million, up from SAR 27.76 million in H1 2021.

Direct selling revenue hit SAR 76.99 million, compared to SAR 51.80 million in the first half of 2021.

Revenue from Enabah and Mamola applications jumped to SAR 2.43 million, from SAR 1.35 million in the year-ago period.

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