Corporate news
Arabian Food Industries Company Domty – DOMT
Commentary on 1Q 2026 Results
Arabian Food Industries Company Domty delivered strong operating performance during the first quarter of 2026, supported by continued revenue growth across its various operating segments.
The company recorded a 13.66% YoY increase in revenues, reaching EGP 2.559 billion in 1Q 2026, primarily driven by the solid performance of its core operating activities, particularly the dairy segment, alongside notable growth in both the juice and bakery segments.
Segment Sales :
The dairy segment remained the largest contributor to revenues, with sales increasing by 8.29% YoY to EGP 1.846 billion, representing approximately 72.14% of the company’s total sales during the period. Meanwhile, the juice segment achieved the highest growth rate, surging by 74.52% YoY to EGP 214.162 million, while bakery segment sales rose by 17.63% to EGP 498.735 million. The bakery and juice segments accounted for approximately 19.49% and 8.37% of total sales, respectively, reflecting the growing contribution of the company’s higher-growth segments within its revenue mix.
Export sales continued to deliver positive performance, increasing by 39.13% YoY to reach EGP 298.813 million, supporting revenue diversification and strengthening the company’s regional presence.
This operational growth positively impacted gross profitability, as gross profit increased by 23.60% YoY to EGP 627.837 million during 1Q 2026, supported by improved operating efficiency and stronger sales mix with better margins.
At the bottom-line level, the company reported a significant improvement in net profitability, with net profit reaching EGP 72.193 million during the period, compared to relatively low levels in the comparable period, representing approximately 5.8x YoY growth, reflecting the notable improvement in operating performance and profitability.
Profitability Indicators :
Gross profit margin for 1Q 2026 recorded 24.53%, compared to 22.56% in 1Q 2025.
Meanwhile, net profit margin stood at 2.82% during 1Q 2026, versus 0.47% in the corresponding period of 2025.
The company’s stock is currently trading at a P/E ratio of approximately 39x, which is higher than the average P/E ratio of the Food & Beverage sector of approximately 25.62x.
Mostafa Amin-Equity Analyst
*MAmin@egy.Primegroup.org