Al Minaj Food Company clarified the preliminary financial results for the period ending on June 30, 2022, where profits increased by 225.33% and amounted to 219.6 million riyals by the end of the first half of 2022, Compared to the same period in 2021, where the company recorded profits of 67.5 million riyals.
According to Arabiya Net, the company explained in a statement that the reason for the increase in profits during the first six months of this year, compared to the same period of the previous year, is due to a 20.8% growth in revenues to reach 1500.9 million riyals, in addition to an increase in gross profit by 79.4%. Because of the improvement in profit margins in most major groups of items as a result of the improvement in commercial conditions during the period.
She added that this came despite the increase in total operating expenses by 11.6% to reach 147.5 million riyals, as a result of the increase in selling and distribution expenses, especially marketing expenses and personnel costs compared to the same period of the previous year.
She indicated that the zakat expense increased by 52.3% to reach the amount of 11.3 million riyals for the period due to the increase in the value of the zakat base.
The company also recorded a net profit during the second quarter of this year, amounting to 122.1 million riyals, an increase of 221.31% compared to 38 million riyals, profits achieved by the company during the same period last year.
The company said that the reason for the increase in profits is due to the growth of revenues by 16% to reach 712.9 million riyals, in addition to an increase in gross profit by 80.8%, due to the improvement in profit margins in most major categories of items as a result of the improvement in commercial conditions during the period.
She pointed out that this despite the increase in total operating expenses by 11% to reach 75.4 million riyals as a result of the increase in selling and distribution expenses, especially marketing expenses, compared to the same period of the previous year.
She added that the zakat expense increased by 55.2% to reach the amount of 6 million riyals for the period due to the increase in the value of the zakat base.
