Egypt’s largest dairy product and juice maker, Juhayna Food Industries, posted lower net profit for the second quarter, blaming rising milk prices and an increase in spending on selling and distribution.
A 6-percent rise in sales was outpaced by a nearly 12-percent surge in the costs of goods sold, the company said on Wednesday. Juhayna’s net income stood at 40 million Egyptian pounds ($5.59 million), down 67 percent from the same period last year.
“Juhayna’s bottom line in the second quarter sagged under pressure as we continued to face escalating raw materials prices (particularly that of milk) while passing prices rises on to the market only in a gradual manner,” it said in a statement.
The company had also blamed rising milk prices for a drop in net income in the first quarter of the year.
Juhayna invested 283 million Egyptian pounds, partly in a new yoghurt factory, under a 400-million-pound plan to expand production and develop its sales network this year. ($1 = 7.1500 Egyptian Pounds)