Latest news with #MohamedOmarElDamaty
Zawya
3 days ago
- Business
- Zawya
Egypt: Domty logs 93% YoY lower consolidated profits in Q1 2025
Arabian Food Industries Company (Domty) generated consolidated net profits after tax attributable to the parent company valued at EGP 10.592 million in the first quarter (Q1) of 2025, according to the financial results. The recorded profits were 93.09% lower than EGP 153.302 million in Q1 2024. Earnings per share (EPS) plummeted to EGP 0.03 in Q1 2025 from EGP 0.44 a year earlier, while the net sales dropped to EGP 2.251 billion from EGP 2.282 billion. As for the standalone business, the company posted an annual plunge in net profit after tax to EGP 10.048 million at the end of March 2025, compared to EGP 153.141 million. Mohamed Omar El Damaty, Vice Chairman of Domty, commented: "The company is working on a comprehensive restructuring plan to implement the Board of Directors' resolution to demerge the company into two listed companies.' 'Within this framework, We are working to reduce the number of receivable days in the wholesale sector, which will take some time and considerable effort to achieve the goal of reducing the company finance expenses and thus improving the profitability, also we are working on more than doubling our marketing expenses throughout the year to facilitate the restructuring process and increase product turnover,' El Damaty added. He concluded: 'Finally, we expect gradual improvement starting the second quarter and a return to normal levels with the announcement of the official company demerger by the end of the third quarter, in order to open up investment opportunities that generate the highest returns for shareholders." © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Yahoo
14-04-2025
- Business
- Yahoo
Arla still at table amid Domty split plan
Arla Foods has expressed its interest in the dairy assets held by Arabian Food Industries, which plans to split into two entities. A 'non-binding offer' from Arla for a majority stake in Arabian Food Industries, also known as Domty, is off after the Egyptian group decided to separate in two. However, the Danish dairy giant said today (14 April) it would hold talks with Domty over its dairy assets. In October, Arla put forward a proposed bid to buy a majority stake in Domty. At the time, the Lurpak owner said the offer was 'non-binding' with the company underling it was 'looking at the details' before deciding whether to proceed with a firm bid. However, Arla said today Domty's decision had changed its position. "At the expiration of the due diligence period, Arabian Food Industries Company has announced its plan to separate the company into two entities. Arla Foods now withdraws the non-binding offer made for the share majority of the entire business and instead explores a potential deal for the entity that owns the dairy business once Domty has successfully completed the demerger,' Kim Villadsen, the SVP for Arla's business in the Middle East and north Africa, said. 'Both companies have agreed to continue the positive and constructive dialogue we have had so far while this process takes place.' As well as dairy products, Domty markets juices and bakery items. In 2024, the company generated sales of E£9.2bn ($180.4m), up from E£7.5bn a year earlier. Its net profit after tax stood at E£501.2m, versus E£454.4m in 2023. Domty issued correspondence from Arla that said the Castello cheese owner had not completed its due diligence on the entire business and would not be able to finish the work now the company had announced its proposed demerger. 'Arla still has the desire to explore a potential entry to the promising Egyptian market,' the letter to Domty MD Mohamed Omar El Damaty read. 'Accordingly, Arla intends to continue interactions with Domty and its major shareholders and to monitor the developments of the demerger process and its due diligence requirements to evaluate the feasibility of a potential acquisition of the entity that would own the dairy business.' Last week, Arla announced plans to merge with German dairy cooperative DMK Group, forming an entity of more than 12,000 farmers across seven countries. The pair said in a joint statement the deal will create 'the largest dairy cooperative in Europe', with members in Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. The merger is subject to regulatory approval and the backing of the board of representatives in both cooperatives in June. It could bring a combined pro-forma revenue of €19bn ($20.75bn) to the new entity, which will carry the Arla name and be headquartered in Viby J, Denmark. "Arla still at table amid Domty split plan" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
