(2018-03-19) Obour Land records top-line growth at 42% in FY17 Obour Land for Food Industries S.A.E. (OLFI) announced its FY2017 results. The Company’s sales for the period recorded EGP 2.07bn, posting a growth of 42% compared to FY2016.
Total volume sold in FY17 remained almost unchanged compared to FY16 recording 97 thousand tons, which is considered as an achievement considering the decreasing consumer purchasing power in 2017, while average price per kilogram increased by 42% y-o-y to reach EGP 21.3 during FY17. The witnessed growth in the Company’s sales performance was mainly driven by the increase in prices, along with the successful sales strategy and marketing campaigns adopted during the period which helped to keep the volume sold unchanged in a decreasing market.
The Company recorded gross profit of EGP 486mn during FY17, posting a y-o-y growth of 34%, translating into a gross profit margin of 24%, compared to 25% in FY16.
Earnings before interest, taxes, depreciation and amortization (EBITDA) recorded a 47% y-o-y growth, to reach a record high EGP 344mn in FY17, yielding an EBITDA margin of 17%.
Obour Land achieved a net profit of EGP 243mn during FY17, a 50% growth compared FY16, translating into a net profit margin of 12% for FY17, an increase of 100bps y-o-y. The surge in profitability margins is driven by the management’s price migration strategy.
