Tanmiah Food Co.’s Q2 2022 net profit of SAR 30 million came above Al Rajhi Capital’s expectations of SAR 14 million.
The deviation in net earnings came as the company’s profit margins was forecast to improve to 22.3%, however, it surprisingly reached 25.2%, Al Rajhi Capital said in a recent note.
Revenue grew on higher sales volumes in the second quarter of the year.
Tanmiah’s first half of 2022 results were positive as the company ended the
period with a strong performance driven mainly from the fresh segment. The
top-line grew by 31.4% y-o-y.
In H2 2022, Tanmiah will be able to maintain its current margin due to lower cost pressure. The company is restructuring its cost to remove the middle man in its transactions.
Tanmiah is expected to report a net profit of SAR 82 million in 2022 and SAR 101 million in 2023.
Al Rajhi Capital maintained its “Overweight” rating on Tanmiah, raising the stock’s target price (TP) to SAR 92.
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