OBOUR LAND FOR FOOD INDUSTRIES S.A.E.

OBOUR LAND FOR FOOD INDUSTRIES S.A.E.

FY2017 EARNINGS RELEASE
FY2022
Obour Land once again breaks records delivering 52% top-line growth in FY22
and ` bottom line recording 32% y-o-y increase, while maintaining strong
profitability margins despite the unprecedent economic global and local crises
which led to extraordinary difficulties in sourcing US Dollars
Key Highlights

All figures are in EGP unless stated y-o-y FY 22 FY 21 y-o-y

otherwise 4Q 22 4Q 21 Change Change
Net Revenues 1,419.5mn 883.7mn 61% 4,560.3mn 3,006.6mn 52%
Volume Sold (W. Cheese) 31.6k tons 30.6k tons 3% 123.1k tons 108.1k tons 14%
Average price/kg (W. Cheese) 42.0 26.4 59% 34.7 25.6 36%
Gross Profit 299.0mn 181.1mn 65% 979.3mn 708.1mn 38%
Gross Profit Margin 21.1% 20.5% 1.1pp 21.5% 23.6% 2.1pp
EBITDA 219.7mn 131.3mn 67% 738.2mn 510.7mn 45%
EBITDA Margin 15.5% 14.9% 0.6pp 16.2% 17.0% -0.8pp
Net Profit 135.7mn 95.7mn 42% 462.4mn 350.9mn 32%
Net Profit Margin 9.6 10.8% 1.2pp 10.1% 11.7% -1.6pp

Cairo, Egypt | January 29, 2023 - Obour Land for Food Industries S.A.E. (OLFI) announced its
audited FY22 results. The company’s net sales for the period recorded EGP 4,560.3mn, posting an
impressive 52% growth compared to FY21.

The 4th quarter continued to witness Obour Land’s remarkable run in white cheese sales volumes,
adding 3% y-o-y recording 31.6k tons. Revenues surged 64% in the 4 th quarter, backed by
several price increases that were implemented throughout the year to mitigate the increasing cost
of sales, which led to expanding the gross profit margin to 21.1% in 4Q22 compared to 20.5% in
4Q21, despite the devaluation of the Egyptian pound.

 The company recorded gross profit of EGP 979.3mn during FY22, posting a y-o-y growth
of 38%, translating into a gross profit margin of 21.5%, a 2.1bps contraction compared to
23.6% in FY21.

 Earnings before interest, taxes, depreciation and amortization (EBITDA) recorded a 45% y-
o-y increase, to reach EGP 738.2mn in FY22, yielding an EBITDA margin of 16.2% with a
decrease of 0.8bps y-o-y.

 Obour Land’s net profit surged by 32% to reach EGP 462.4mn during FY22, translating
into a net profit of 10.1%, 1.6bps lower than in FY21.

obourland.com 1
 OBOUR LAND FOR FOOD INDUSTRIES S.A.E.
OBOUR LAND FOR FOOD INDUSTRIES S.A.E.
FY2017 EARNINGS RELEASE
FY2022

`
FY 22 FY 21 y-o-y
Gross Sales Breakdown (mn)
Change
White Cheese 4,272 2,765 55%
Milk 213 191 11%
Juice 65 37 76%
Processed Cheese 31 31 0%
Total 4,581 3,024 51%

Mr.Ashraf Hamed Sherif, Vice Chairman Comments:

I am delighted to share with you our results for the full year of 2022. Despite an ongoing global
economic crisis and a severe shortage of US Dollars in the local market, Obour Land continued to deliver
impressive results and expand its market share while maintaining strong profitability margins and a
healthy cash flow.

The company faced great difficulties in sourcing the raw materials since March 2022 due to
shortages in the US dollar supply, which continued till the end of the year and exposed our inventory
levels. However, the management used all the different tools and strategies available to purchase the
raw materials to continue production and meet the demand for our products.

Starting January 2023, we saw a massive improvement in US Dollar availability in the banks and
we started building back our inventory to safe levels. We expect challenges may continue in 2023 but
with less severity than what we witnessed in 2022.

Overview of Segment Performance:

Despite the challenges, the white cheese segment recorded an impressive 55% increase in gross
revenues, recording 4,272.2mn compared to 2,764.5mn. The increase in revenues came as a result of a
14% increase in sales volumes, reaching 123.2k tons, which we believe reflects a sharp increase in
Obour Land’s market share in 2022. The increase in revenues was also backed by a 36% increase in
average prices to maintain our profitability margins and offset the increasing costs of sales due to high
raw material prices and the US Dollar exchange rate.
The Milk and Juice segments have generated gross revenues of EGP 213mn and 65mn respectively
in FY22. The milk segment witnessed slow performance throughout the year as sales volumes declined
19% in 2022 while revenues increased by 11%. The decline in sales volumes was expected by the
management due to the great challenges facing the markets, which affected smaller players in different
markets; however, the management expects the milk segment to improve in 2023 as the markets
stabilize.

obourland.com 2
 OBOUR LAND FOR FOOD INDUSTRIES S.A.E.
OBOUR LAND FOR FOOD INDUSTRIES S.A.E.
FY2017 EARNINGS RELEASE
FY2022

`
On the other hand, the Juice segment saw a boost in sales revenues and volumes sold, 76% and
93% respectively. The surge in the juice segment was a result of the company’s new brand “Lovely”
which was introduced at the beginning of the year and helped to reach new consumer segments. The
management expects the juice segment to continue this strong performance in 2023.

The processed cheese segment witnessed a slow performance in 2022 with a flat revenue growth
of EGP 30mn in FY22 while sales volumes declined 25%. The decrease in sales volumes was due to the
contraction in the processed cheese market as a whole, mainly the glass jar product, as a result of its
relatively high price levels. The management expects the 50mg “Mafrooda” product to perform better
than the glass jar in 2023 as the processed cheese market may shift to cheaper products.

Obour Land’s management is encouraged by the solid performance we have delivered overall,
and we are optimistic about the company’s growth prospects and its ability to navigate through crises,
which has been proven several times.

Our commitment to excellence and aspirations to offer the highest-possible quality of products,
which are both affordable and safe, remains our key prime focus and our relentless driver for our
expansionary attitude.

obourland.com 3
 OBOUR LAND FOR FOOD INDUSTRIES S.A.E.
OBOUR LAND FOR FOOD INDUSTRIES S.A.E.
FY2017 EARNINGS RELEASE
FY2022

`
About Obour Land for Food Industries S.A.E. (OLFI)
Obour Land for Food Industries S.A.E., a leading white cheese manufacturer in Egypt, is a joint stock company
established in 1997. Obour Land manufactures, markets and distributes a wide variety of carton packed and
plastic tub white cheese products and has a robust distribution platform, with a direct and indirect outreach
that covers all of Egypt. The Company’s white cheese product offerings spans Feta, Istanbuly, Double Cream,
Olive, Khazeen, Talaga and Barameely, all marketed under the well-known brand name “Obour Land”. The
Company also produces Milk, Juice and processed cheese products since 2018.

Obour Land is the number one white cheese producer & seller in Egypt boasting the largest market share by
total sales volume. The Company is listed on the Egyptian Stock Exchange, and is traded under the symbol
“OLFI.CA”.

For more information, please visit: www.obourland.com

Investor Relations Contacts

[email protected] | ir.obourland.com

Disclaimer
This announcement contains statements that could be construed as forward looking. These statements appear
in a number of places in this announcement and include statements regarding the intent, belief or current
expectations of the future growth of the business, financial results and other aspects of the activity and situation
relating to the Company. Such forward looking statements are no guarantees of future performance and
involve risks and uncertainties, and actual results may differ materially from those in the forward looking
statements as a result of various factors. You are cautioned not to place undue reliance on those forward
looking statements, which speak only as of the date of this presentation, which is not intended to reflect Obour
Land for Food Industries S.A.E. business or acquisition strategy or the occurrence of unanticipated events.

obourland.com 4