Domty’s OGM approves US$78,000 dividends for 2024

EGYPT – The Arabian Food Industries Company (Domty) recently held an Ordinary General Meeting (OGM) which approved a dividend distribution of EGP 4 million (approximately US$78,000) for 2024, according to a bourse disclosure.

In 2024, the firm’s consolidated net profits attributable to the parent company increased by 10.29% year on year, reaching EGP 501.179 billion (US$9.8B), up from EGP 454.439 billion (US$8.9) in 2023.

Consolidated net sales stood at EGP 9.225 billion (US$182M) last year, rising from EGP 7.504 billion (US$148M) the previous year.

According to the standalone financial statement, Domty recorded net profits after tax of EGP 0.308 million (US$6,000) in 2024, a decline from EGP 0.912 million (US$17000) in 2023.

In October of last year, Arla Foods made a non-binding acquisition offer to Domty. Arla aimed to launch a mandatory tender offer to fully acquire the company’s entire share capital, estimating an initial non-binding valuation of EGP 8.89 billion (US$175M).

This offer suggested an initial non-binding price per share of EGP 31.48 (US$0.62), in accordance with Article 337 of the Executive Regulations.

Arla also intended to voluntarily delist Domty from the Egyptian Stock Exchange (EGX) following the transaction.

The El Damaty family, the current owners of Domty, expressed their intention to retain a stake in the company alongside Arla, and Mohamed El Damaty is expected to continue as the CEO.

In April, Domty announced its decision to exclude its newly established baked goods division from Arla Foods’ acquisition proposal.

This segment is valued at US$176M and is the most profitable segment among Domty’s three product divisions, contributing to a gross profit margin of 25.5% of total segment sales, valued at EGP 1.9 billion (US$36M).

The offer remains contingent upon satisfactory due diligence, the execution of definitive contracts, and necessary corporate and regulatory approvals.

Egypt’s Financial Regulatory Authority has extended Arla’s due diligence period by an additional 60 working days, beginning January 9.

Ongoing negotiations may lead to adjustments in the offer price if Arla Foods decides to acquire Domty without the bakery division.

Founded in 1990, Domty manufactures, markets, and distributes a variety of branded white and processed cheeses, as well as juice products.

The company has recently expanded its offerings to include a bakery range and is a household name in Egypt, holding the leading position in the local cheese market and experiencing growth in the juice segment.

 Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.