JEDDAH — Saudi Arabia’s leading online food delivery platform Jahez Company recorded a surge in its profits reaching SR56.5 million during the year 2022. The company announced on Tuesday its annual results for the past year on Saudi Stock Exchange (Tadawul).

It is noteworthy that Jahez posted a net profit amounting to SR53.2 million during the first half of 2022, a jump of 85 percent from SR 28.7 million a year earlier.

Jahez revealed that it achieved many expansions and positive results in 2022 compared to the previous year as the delivery platforms sector registered a growth in profits by 56 percent to reach SR180.4 million, thanks to an increase in the total revenues of the sector by 37.9 percent.

This is in addition to an increase in the average number of customers by 35.5 percent last year. The average number of monthly orders per customer rose to 4.8 in 2022, compared to 4.7 in the previous year.

Jahez announced that it was able to expand geographically within Saudi Arabia by increasing the number of cities in which the group operates to 90 cities with enhanced efficiency in operations.

It was indicated in its annual results that the company recorded external expansion and launched operations in Bahrain and Kuwait, with the development of direct trade platforms “Pik and Blue Store.”

This led to recording costs related to external expansion, while bearing non-recurring costs that are not expected to be incurred during the coming periods by SR79.5 million and these costs are represented in the value of salaries, wages and benefits of drivers for a period before completing the necessary procedures to join the operating team

The report showed the high costs of the fleet and the limited productivity of newly hired drivers during their training period.

The company was able to record adjusted profits before interest, taxes, depreciation and amortization of SR167.1 million, which represents 10 percent of total revenues. The company’s zakat expenses for the past year increased by about SR28.3 million, due to the addition of the initial public offering proceeds to the zakat base.

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