The Net Profit of the Group decreased by 52% reaching SAR 56.5m compared to SAR 116.7m in 2021, the reasons for the change in profits according to the operating segments are as follows: • Delivery Platforms Segment: the segment net profit has increased by 56% from SAR 115.9m in 2021 to SAR 180.4m in 2022 and this is mainly due to: - The increase in the Segment Gross Revenues by 33.7% (37.9% of Net Revenues) driven by the increase of 35.3% in the average number of users in 2022, and the increase in the average take rate in 2022 to reach 12.5% compared to 11.6% in the previous year. In addition to the increase in the monthly average orders per user reached 4.8 compared to 4.7 orders last year. - The geographical expansion around the Kingdom by increasing the number of cities in which the group operates to reach 90 cities alongside the increase of the efficiency in operations. - A strong operational cost control and the effect of economies of scale through the order's growth. This increase was achieved despite the costs related to the international expansion where the Group launched its operation in Bahrain and Kuwait in 2022, as well as the developments in Direct Commerce platforms (Pik, BLU Store). • Logistic Segment: Despite the increase in Segment Revenues by 180.4%, the segment has recorded a loss of SAR -123.8m in 2022 compared to a loss of SAR -6.4m in the previous year due to: - Non-recurring expense of SAR 79.5m which consists of drivers related expenses item representing the value of salaries, wages and benefits of drivers for a period before the completion of the necessary procedures to join the operating team which took more time than expected for uncontrollable reasons, and other governmental expenses. - The increase in costs related to the fleet and the limited productivity for new drivers during the training period. • Other Segment: recorded a loss of SAR -3.2m related to the Group activities regarding cloud kitchens and the investments in Red Color Company. The Adjusted Earnings before interest, taxes, depreciation and amortization (Adj.EBITDA) for the Group reached SAR167.1m for 2022, compared to SAR125.3m for last year, with an increase of 32.8% which represents 10% of Gross Revenues at a steady rate for 2022 and 2021. Also, it is worth noting that Zakat Expense for the year 2022 increased exceptionally reaching SAR 28.3m due to the addition of proceeds from Initial Public Offering to the Zakat base. |
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