Jahez, the leading Saudi food delivery company, has reported its 2023 earnings, marking a significant (and expected) turnaround in its financial performance.
Following a somewhat challenging year in 2022 with a 50 percent slump in profits, the company has rebounded strongly, with its bottom line soaring and profits surging to $33 million (SAR 125.34 million) for the year, representing an increase of 113 percent year-over-year.
(The drop in net profit in 2022 was caused by non-recurring expenses on company’s logistic segment).
The company’s revenue growth slowed down in 2023, rising by 11 percent year-over-year to reach $476 million (SAR 1784.76 million). This is a decrease from the 38 percent growth seen in 2022 and the 121 percent growth the year before. The slowdown is perhaps a function of company’s expansion in size.
The number of orders grew by 22 percent to 84.8 million in 2023 (vs 69.6 million in 2022) but the average order value saw a small drop, decreasing to $16.5 (SAR 60) in 2023 vs $16 (SAR 62) in 2022.
The Gross Order Value (which includes taxes and delivery fee on top of GMV) grew about 16 percent to $1.87 billion (SAR 7.02 billion), up from $1.61 billion (SAR 6.07 billion) in 2022. The Gross Merchandise Value (GMV) experienced a 19 percent increase, reaching $1.36 billion in 2023, up from $1.14 billion (SAR 4.29 billion) in the previous year.
Jahez also reported its non-KSA numbers for the first time after expanding to Bahrain in mid 2022 and Kuwait in 2023. The two markets contributed a GMV of $65 million (SAR 242 million) which is 5.6 percent of company’s total GMV.
