Tanmiah Food’s H1 2022 profit jumps 43% to SAR 31.7 mln; Q2 at SAR 30.2 mln

Tanmiah Food Co. posted a rise of 43% in H1 2022 net profit after Zakat and tax to SAR 31.7 million, compared to SAR 22.2 million a year earlier.

The company reported a 31.4% rise year-on-year (YoY) in revenue to SAR 965.9 million, due to the improved performance of the company’s business segments, with fresh poultry and further processed products being the key contributors to this growth.

Gross profit jumped 34.3% in the six-month period, as Tanmiah passed on the increase in input costs, through the selling prices of its products in the market, along with improved efficiencies and effective utilization of new assets.

The profit growth came despite an increase of 35.1% YoY in selling, general and administrative expenses (SG&A) to SAR 174.4 million. The cost of sales also increased by 30.6%.

In Q2 2022, the company’s net profit after Zakat and tax skyrocketed to SAR 30.2 million, from SAR 3.42 million in the prior-year period, as revenue leapt 44.8% YoY to SAR 530.6 million. Gross profit surged 71.3%.

On a quarterly basis, Tanmiah’s second-quarter net profit soared from SAR 1.54 million driven by a 21.9% rise in revenue and a 47.1% jump in gross profit.

Shareholders’ equity, after minority interest, declined to SAR 377.77 million as of June 30, 2022, compared to SAR 369.94 billion a year earlier.

In the next five years, capital expenditure is planned to be directed mainly to increasing feed milling, primary processing and further processing capacities, which will allow the company to capture new and emerging growth opportunities. Tanmiah’s capital investments are expected to result in an improvement in revenues and margins, supported by the growing popularity of Tanmiah’s products

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