Egypt’s Juhayna posts 48 % Net Profit Fall as Costs Rise

Juhayna Food Industries (JUFO), one of Egypt’s largest dairy product and juice makers, posted a 48 percent fall in full-year net profit on Monday on higher input prices as well as currency rates.

Net profits fell to 170.1 million Egyptian pounds ($22.29 million) from 328.3 million, it said in a statement.

It cited “negative impact on profit margins from a large increase in the prices of raw materials, which have not been fully passed on to the consumer, in addition to the rise in energy prices and currency rates.”

Energy prices rose by as much as 78 percent after Egypt slashed energy subsidies in July.

Juhayna also noted that a nationwide shortage of dollars had made it difficult to secure imports.

Sales rose to 3.7 billion pounds from 3.3 billion, it said.

The board of Juhayna, whose clients include Egypt Air and Air France, as well as hotels and restaurants, recommended the distribution of 0.10 pounds per share.

Source:Reuters