Ajwa for Food Industries Egypt reports 76.03% drop in net profit for 2024
This decline in revenue reflects a broader slowdown in consumer demand and possibly increased competition in Egypt’s food processing sector.
EGYPT – Ajwa for Food Industries Egypt, an Egypt-based public company that specializes in the manufacturing, refining, packing, and exporting of various edible oils, ghee, margarine, and shortening, has released its consolidated financial results for the year ending December 2024, revealing a significant downturn in profitability.
The company’s net profit after tax fell to EGP 10.877 million, a steep decline from EGP 45.382 million recorded in 2023.
This marks a 76.03% year-on-year decrease, underscoring the impact of market pressures and operational challenges.
The company’s net sales for 2024 decreased to EGP 1.702 billion from EGP 1.900 billion in 2023, indicating a contraction in revenue amid challenging market conditions.
Despite a strong first half in 2024, when consolidated profits soared by 292.88% to EGP 110.314 million from EGP 28.078 million in the first six months of 2023, the second half of the year witnessed a marked downturn, leading to the overall decline for the year.
This decline in revenue reflects a broader slowdown in consumer demand and possibly increased competition in Egypt’s food processing sector.
Additionally, earnings per share (EPS) slipped to EGP 1.36, down from EGP 1.48 in 2023, further highlighting the strain on shareholder returns.
Interestingly, Ajwa had a strong start to the year. In the first half of 2024, the company posted a 292.88% increase in consolidated profits after tax and non-controlling interests, reaching EGP 110.314 million compared to EGP 28.078 million during the same period in 2023.
This early momentum, however, was not sustained through the latter half of the year, suggesting that unforeseen costs, market volatility, or operational setbacks may have eroded gains.
Ajwa’s performance is being closely watched by investors and analysts, especially given its role in Egypt’s food industry.
The company specializes in the production and distribution of food products, including rice, oil, and frozen goods, and has historically been a key player in both domestic and regional markets.
The sharp decline in profits may prompt Ajwa to reassess its strategic priorities, streamline operations, or explore new markets to regain financial stability.
Industry observers will be looking for signs of recovery in the company’s upcoming quarterly reports and any announcements regarding restructuring or investment plans.
As Egypt’s economy continues to navigate inflationary pressures and shifting consumer behavior, Ajwa’s 2024 results serve as a cautionary tale of how even established firms must adapt swiftly to maintain profitability.
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