JAHEZ DELIVERS STRONG Q1 2025 RESULTS WITH 185% NET INCOME AND 128% ADJUSTED EBITDA GROWTH - Middle East Business News and Information
Jahez International Company for Information System Technology ('Jahez', or the 'Group', 6017 on the Saudi Exchange's TASI – Main Market), announces its financial results for the first quarter of 2025. The Group recorded strong year-on-year (YoY) growth across all geographies and verticals throughout Jahez's ecosystem.
Ghassab Bin Salman Bin Mandeel, CEO of Jahez Group, said:
'We've had a strong start to 2025, staying focused on the fundamentals, profitable growth, operational efficiency and building a strong ecosystem for merchants and users. Our core market in Saudi continues to perform well and we're seeing encouraging progress in Kuwait and Bahrain where we've significantly improved our financial position while maintaining market share.
What's especially promising is the traction we're seeing in our newer verticals which are starting to scale meaningfully. These are important parts of our core strategy to leverage our unique and diversified ecosystem as we create a broader tech-enabled commerce platform.
As we look ahead, we'll keep investing where it matters which are products, people and platform, while staying disciplined on execution. The focus remains on delivering value across the ecosystem and growing in a sustainable way.'
Key Highlights Q1 2025: GMV increased by 10.9% year-over-year to 1.6 billion (15% LFL[1]), with GMV in non-KSA geographies up 15% (17% LFL) and KSA platforms up 10% YoY (13% LFL)
Net Revenue up 9.4% YoY to 526.0 million (Q1 2024: 480.9 million), driven by higher total orders, average order value, and significant growth in advertising revenues and Other Revenues2.
Adj. EBITDA up 128.1% to 51.1 million and representing 9.7% of Net Revenue (Q1 2024: 22.4 million, 4.7% of Net Revenue).
of Net Revenue (Q1 2024: 22.4 million, 4.7% of Net Revenue). Net Income Attributable to the Shareholders of the Parent Company grew 184.7% YoY to 35.3 million (Q1 2024: 12.4 million)
KSA platforms reached its highest monthly order volume since inception and sustained a strong Adj. EBITDA margin of 11.9% through cost control measures.
Non-KSA platforms significantly improved financial performance with EBITDA losses reduced to 1.9 million in Q1 2025 from 26.5 million last year while maintaining market share.
Logi expanded driver base to 4,260 compared to 1,684 in Q1 2024, while ensuring regulatory compliance in KSA.
Advertising Revenues up 93% YoY, with growth accelerating powered by new ad-product rollouts and strong uptake in merchant adoption and demand.
Other Revenues[2] saw strong growth with revenue increasing 55.5% YoY.
Gross revenue reached 575.5 million, marking a 12% increase YoY, underpinned by higher commissions, advertising revenue, and solid contributions from diversified verticals
Financial Highlights:
Jahez Group delivered a strong performance in Q1 2025, with strong revenue growth, increased order volumes, and improved operational efficiencies. The Group reported Q1 2025 Net Revenue of 526.0 million, a 9.4% increase YoY, mainly driven by: 7.3% YoY (12% LFL) rise in total orders, accompanied by a 10.5% increase in the Active Users YoY.
Improved take rate from 14.4% in Q1 2024 to 14.9% in Q1 2025, reflecting successful negotiations with key partners and enhancing value per transaction.
Increased average order value to 63.1 compared to 61.0 in Q1 2024, driven by seasonality offerings and customer purchasing behaviors during Ramadan.
Substantial growth in Advertising Revenues, up 93.2% year-over-year to 30.7 million, driven by new initiatives such as the launch of the Explore and Fawasel functions on the app for improved visibility and user experience, and enhanced geo-targeting algorithms to increase advertising availability. The introduction of the new Reels functionality (Fawasel) to the Jahez app is expected to further boost advertising revenue in the near to mid-term.
Additionally, Other Revenues generated by the Group's new verticals (Sol, Co, and Marn) along with Blu Store Direct Sales, experienced significant YoY expansion of 55.5%.
Gross profit margin (% of Net Revenue) improved by 4.1 percentage points, reaching 24.0% in Q1 2025 (19.9% in Q1 2024), mainly due to cost efficiencies coupled with revenue growth. This improvement in cost structure has supported Jahez's growth initiatives across key cities in KSA and in Non- KSA platforms.
Net Profit attributed to the Shareholders of the Parent Company reached 35.3 million at the end of Q1 2025 ( 12.4 million in Q1 2024) with a significant increase of 184.7% YoY.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CairoScene
3 days ago
- CairoScene
Private Sector Bank Claims in Saudi Arabia Reach SAR 3 Trillion
Credit to private businesses and individuals rose 15.2% in April 2025, totalling SAR 3.012 trillion. Private sector banking claims in Saudi Arabia have reached SAR 3.012 trillion as of April 2025, marking a 15.2% year-on-year increase, according to new data from the Saudi Central Bank. The figure reflects total credit issued to non-government entities, including businesses and households, and highlights continued expansion in the Kingdom's financial sector. The rise in private sector lending is supported by strong domestic demand and aligns with ongoing efforts to diversify the economy under Vision 2030. The latest increase also follows a 10% year-on-year growth in time and savings deposits, which reached SAR 949.7 billion by the end of 2024. Credit to the private sector now accounts for the bulk of bank lending activity in Saudi Arabia. The trend has drawn attention from ratings agencies such as Fitch, which forecast that Saudi banks would maintain one of the highest credit growth rates in the region throughout 2025.
CairoScene
3 days ago
- CairoScene
London-Based Pinsent Masons Expands With New Riyadh Law Firm
The new office marks its fourth location in the Middle East and will focus on transactional legal services. Pinsent Masons has opened an office in Riyadh, marking its fourth location in the Middle East after Dubai, Abu Dhabi and Doha. The new office, which began operations in the beginning of March, is led by Ibrahim Alajaji, a project finance and construction specialist who was previously a partner at Alsabhan & Alajaji. While Pinsent Masons and Alsabhan & Alajaji will now operate independently, the firms will continue their exclusive collaboration, first established in 2018. Alsabhan & Alajaji will focus on local court matters and legislative drafting under the leadership of Naif Alsabhan, while Pinsent Masons Saudi Arabia will focus on transactional legal services. The Riyadh office includes partners Rena Scott, who joined last year from Orrick to lead the firm's Saudi construction advisory and disputes practice, and Tim Armsby, who heads the firm's Middle East finance and projects division. Both Armsby and Alajaji have advised Saudi Arabia's National Centre for Privatisation, which oversees public-private partnerships and government entity privatisations. The new structure is anticipated to allow Pinsent Masons' to further serve clients in the Saudi market and offer opportunities for young Saudi lawyers to gain experience in high-value transactions and complex legal matters. The move follows Saudi Arabia's 2023 legal market reforms, which allow foreign firms to establish their own operations in the Kingdom. These changes have prompted several international law firms to enter or expand their presence in Saudi Arabia, including Clifford Chance, Latham & Watkins, and Addleshaw Goddard.
CairoScene
4 days ago
- CairoScene
Green Roofs to Riyadh's Deepest Metro: Schaduf's Journey into Saudi
Inside the landscape firm's most complex project to date: a 36-metre-deep green wall at Qasr Al Hukm metro station. When Sherif Hosni, Co-Founder of Cairo-based landscape firm Schaduf, talks about Qasr Al Hukm, there's a noticeable pause before he calls it what it is: the flagship. 'It's the biggest project we've completed,' he tells SceneHome. Schaduf began with a shared passion for sustainability—specifically, green roofs—and grew from there. But over time, one thing became clear: Saudi was the biggest market. It wasn't easy. Establishing a business presence in the Kingdom came with its own set of hurdles. But a strategic partnership in 2018 helped unlock the opportunity, and by 2022, Schaduf had opened a formal office in Saudi Arabia—just in time to take on its largest challenge yet. Qasr Al Hukm is one of Riyadh's main metro stations, part of the city's broader infrastructure transformation. At its core is a green wall designed and executed entirely by Schaduf—spanning 36 metres underground. Unlike earlier projects where Schaduf might have handed over execution to a local partner, this time they did it all themselves—from design to installation. They now oversee maintenance and operations, too. Today, Qasr Al Hukm represents more than just a completed project. It's proof of capability. And it marks the beginning of Schaduf's regional expansion.
