ARABIAN FOOD INDUSTRIES COMPANY DOMTY S.A.E

PRESS RELEASE

Domty's sales grew by 10% year on year, despite the global & local challenges

_____Highlights of 2Q20_____

Revenues EGP 710.9 mn

Gross Profit EGP 167.3 mn

Gross Profit Margin 23.54%

Operating Profit EGP 59.1 mn

Net Income EGP 31.7 mn

Net Income Margin 4.46%

HIGHLIGHTS OF THE CONSOLIDATED INCOME STATEMENT:

(Numbers in EGP million):

Description 2Q2020 1Q2020 4Q2019 3Q2019 2Q2019

Net Sales 710.9 744.8 646.9 720.2 646.8

Gross profit 167.3 183.9 173.8 191 158.4

Gross Profit Margin 23.54% 24.69% 26.87% 26.53% 24.49%

EBIT 59.1 56.4 61.7 88.1 66.7

EBIT Margin 8.31% 7.57% 9.53% 12.23% 10.31%

Net Profit Before Tax 43.5 44.5 52.6 68.5 50.9

Profit Margin Before Tax 6.13% 5.97% 8.14% 9.51% 7.87%

Net Profit 31.7 32.1 39.1 50.7 37.5

Net Profit Margin 4.46% 4.31% 6.05% 7.04% 5.80%

EBITDA 76 73.2 77.2 100.5 82.5

EBITDA Margin 10.70% 9.83% 11.94% 13.95% 12.75%

ARABIAN FOOD INDUSTRIES COMPANY DOMTY S.A.E

PRESS RELEASE

Cairo, 10 August 2020

Arabian Food Industries Company Domty S.A.E. (DOMT.CA on the Egyptian Exchange), announced today its

consolidated results for 2Q2020.

Domty achieved a net profit of EGP 31.7 million in 2Q2020, after achieving sales of EGP 710.9 million.

Commenting on the 2 nd quarter’s performance, Domty CEO for commercial affairs Mr. Ahmed El

Kattan said: Domty was able to achieve a sales growth of 10% year on year, despite all the challenges that

faced the Egyptian and international market during this critical period.

We are also happy to achieve a sales growth of 12% in the first half of the year, which reflects the strength of

the company in implementing the 2020 plans and the determination of the entire team to overcome all the

difficulties facing the entire market.

Domty continues to support and develop the sales of the carton packed cheese in the local market, especially the

Domty Plus family, which witnessed a growth of more than 35% in the first half of the year versus the first half

2019, hence compensates the decline in the governmental sales channel (ministry of supply), that is witnessing a

significant volume decline.

Domty also continues to develop the sales of the fresh cheese segment, especially the mozzarella family,

despite the drop in the tourism sales channel during 2Q2020, the team was able to fully utilize the current

production capacity during 2Q2020 and we are ready now for injecting more quantities in the market after

operating a new mozzarella line in the second half of August.

As for the bakery segment, the company was able to achieve a growth rate of 84% year on year despite the

closure of school and universities and curfew imposition during 2Q2020, this reflects the power of the

product/brand and its consumer’s loyalty to it and the competence of the team that is working together to

overcome all challenges to achieve the company's strategic goals.

Despite the decrease in the juice market by more than 20% in 2Q2020, juice sales decreased by only 3% in the

second quarter, which reflects the company's ability to deal with market variables in time of crisis.

On the other hand, EL kattan emphasized that the company's management is currently working on

implementing a business plan aimed at reducing sales/operating expenses to gradually improve the profit

margin during the third and fourth quarters of the current year.

ARABIAN FOOD INDUSTRIES COMPANY DOMTY S.A.E

PRESS RELEASE

Sales Revenue breakdown for 2Q2020:

Segment Revenue (EGP mn) Gross Margin By Segment

Cheese 528.1 24.31%

Juice 82.3 17.5%

Bakery 100.5 26.4%

Total Revenues 710.9 23.54%

Consolidated Income Statement

(EGP mn) 2Q2020 2Q2019

Net Sales 710.9 646.8

Cost of Sales 543.6- 488.4-

Gross Profit 167.3 158.4

Gross Profit Margin 23.54% 24.49%

Sales & Marketing Expenses 103.1- 88.1-

General & Administrative Expenses 13.1- 11-

Total SG&A 116.2- 99.1-

Other Income 8 7.5

Provisions 0.003- 0.010-

Operating Profits 59.09 66.7

Operating Profit Margin 8.31% 10.31%

Net Interest Expense -15.5 15.8-

Health insurance contribution -1.9 -1.7

Net Profit Before Tax 41.7 49.2

Income Tax -10 -11.7

Net Profit 31.7 37.5

Net Profit Margin 4.46% 5.80%

For viewing the full set of financials kindly visit domty.org

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About Arabian Food Industries Company Domty S.A.E.

Domty, founded in 1988and headquartered in Egypt, is a leader in the growing Egyptian cheese and juice

market. The Company manufactures markets and distributes a range of branded white and processed cheeses

ARABIAN FOOD INDUSTRIES COMPANY DOMTY S.A.E

PRESS RELEASE

and juice products, with a family of nearly 200 SKUs under a brand portfolio including Domty, Damo, Gebnety

and Bravo. Domty is a household name and the number-one cheese producer in the nation by market share. The

Company sells to tens of thousands of retail and business customers as well as to more than 46 export

destinations. Learn more about Domty by visiting Domty.org

Contact Ahmed Mohy Eldin

Investor Relations and Corporate Affairs Director

T: +202- 010 - 0555 2235| ahmed.mohy@domty.org