Jahez net profit climbs 85% to SR53.2m in H1 2022

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Saudi Gazette report

Riyadh Jahez International Company for Information System Technology (Jahez) released a net profit, after Zakat and taxes, of SR 53.2 million in the first half of 2022, an 85% jump from SR 28.7 million a year earlier.

The rise in profit was mainly attributed to a 59.9% increase in revenue year-on-year (YoY), due to higher delivery costs and commission income of SR 159.5 million and SR 81.8 million respectively.

The rise in revenue was driven by a 36.5% year-on-year increase in Gross Merchandise Value (GMV) to SR 2 billion. The average attendance rate increased in the first half to 12.3%, compared to 11.2% in the first half of 2021. Gross profit also climbed 90% despite a 52.6% increase in the cost of revenue.

Operating profit soared 91.2% on an annual basis. Earnings before interest, tax, depreciation and amortization increased to SR66.1 million from SR34.1 million in the first half of 2021.

Total equity, excluding minority interests, increased to SR 990.96 million as of June 30, 2022, from SR 187.27 million a year earlier.

There was an increase in the Gross Merchandise Value (GMV) in the first half of 2022 by 36.5% to reach SR 2 billion due to the increase in the number of orders in the first half of 2022 by 45.5% for reach 31.5 million orders, compared to 21.6 million orders in the corresponding period last year. This is due to the 48.1% increase in the average number of users in the first half of 2022, compared to the corresponding period last year, despite the slight decrease in the average monthly orders per user to reach 4.5 orders in the first half of 2022, compared to 4.6 orders in the corresponding period last year. GMV per order decreased in the first half of 2022 to SR 63.2 from SR 67.4 in the corresponding period last year.

– The average take rate increased in the first half of 2022 to 12.3%, compared to 11.2% in the corresponding period last year, in addition to an increase in the average number of traders to reach 7 879 restaurants in the first half of 2022 compared to 4,742 restaurants in the corresponding period of last year.

The group’s gross margin increased by 90% despite the increase in cost of sales of 52.6% which is mainly due to the increase in total delivery and operations costs which is in line with the number of orders during of the first half of 2022.

Operating profit also jumped 91.2% despite research and development spending rising 226.4%, in line with the company’s strategy to invest in platform development and improved user experience. The 243.7% increase in general and administrative expenses reflects the increase in headcount in line with growth and geographical expansion as well as the expansion of the activities of the subsidiaries and in particular Supportive Solutions Company for Logistic Services (Logi) .

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