Financial performance

Financial performance indicators for 2022

	2022 (Audited consolidated)	2021 (Audited consolidated)	2020 (Audited consolidated)	2019 (Audited non-consolidated)
Key Performance Indicators
Gross Order Value (GOV)* (SAR ’000)	5,774,161	4,524,826	1,887,706	631,862
Gross Merchandise Value (GMV) (SAR ’000)	4,291,296	3,342,531	1,418,096	497,477
Number of orders (in Millions)	69.0	51.6	19.5	6.9
Average total GMV per order (SAR)	62.2	64.8	72.6	71.1
Average monthly orders per customer	4.8	4.7	4.5	3.8
Average number of merchants	8,967	5,550	2,336	1,475
Average number of branches	20,730	13,608	7,181	4,506
Average delivery fee per order (SAR)	14.3	14.4	14.6	14.9
Average commission per order (SAR)	7.7	7.5	7.7	6.7
Average commission percentage (%)	12.45%	11.6%	10.60%	9.50%
Gross profit margin	22.41%	21.17%	23.60%	16.10%
Adjusted Earnings/(loss) margin before interest, tax, depreciation, and amortization	10.3%	10.8%	9.6%	(2.4%)
Net profit/(loss) margin for the year	3.5%	10.1%	8.6%	(4.1%)
Return on equity	5.63%	62.5%	86.9%	(9177.1%)
Return on total assets	4.01%	23.7%	17.0%	(10.7%)
Statement of Income (SAR ‘000)
Revenues	1,602,477	1,159,568	459,306	158,529
Cost of Revenue	(1,243,297)	(914,043)	(350,779)	(133,035)
Gross Profit	359,180	245,525	108,527	25,494
General and administrative expenses	(136,450)	(26,176)	(11,408)	(6,317)
Advertising Expenses	(131,378)	(86,568)	(49,425)	(20,647)
Research and development expenses	(33,784)	(10,986)	(4,924)	(2,566)
Profit/(Loss) of change in trade receivable	3,756	(2,501)	(464)	(66)
Loss of impairment of receivable from related parties	0	0	(1,855)	(1,969)
Other Income	2,696	484	486	20
Operating Profit/(loss)	64,020	119,777	40,937	(6,051)
Financing Costs	(3,156)	(547)	(305)	(245)
Net profit/(loss) for the year before Zakat	84,828	121,198	40,632	(6,296)
Zakat	(28,304)	(4,488)	(1,135)	(128)
Net Profit/(loss) for the year/period	56,523	116,710	39,496	(6,424)
Statement of financial position
Total current assets	1,208,571	435,435	214,792	46,859
Total non-current assets	202,314	58,581	17,175	12,936
Total Assets	1,410,885	494,016	231,967	59,795
Total current liabilities	299,196	278,662	178,037	53,618
Total non-current liabilities	107,723	27,037	8,473	6,106
Total Liabilities	406,919	305,700	186,510	59,724
Total Equity	1,003,966	188,316	45,457	70
Total Equity and Liabilities	1,410,885	494,016	231,967	59,795
Statement of Cash Flows
Net cash flow from operating activities	7,198	206,178	174,800	19,415
Net cash flow used in investing activities	(219,056)	(16,920)	(5,432)	(3,156)
Net cash flows from (used in)/financing activities	722,856	(3,294)	(2,636)	1,901
Cash and cash equivalent at the end of the year/period	902,686	391,688	205,724	38,992

Gross Merchandize and Order Value (GMV)

SAR ’000	2022	2021	2020	2019
GMV (Gross Merchandise Value)	4,291,296	3,342,531	1,418,096	497,477
Value Added Tax on the Value of the Order	643,199	486,816	161,957	24,874
Delivery Value Paid by Customers	730,045	604,764	276,345	104,297
Value Added Tax on Delivery Value Paid by Customers	109,621	90,715	31,308	5,215
GOV (Gross Order Value) (Thousands of Saudi Riyals)	5,774,161	4,524,826	1,887,706	631,862

Revenue by type

SAR ’000	2022 (Audited consolidated)	2021 (Audited consolidated)	2020 (Audited consolidated)	2019 (Audited non-consolidated)
Revenue from delivery fees	989,576	744,622	285,457	104,297
Revenue from commissions	534,226	389,097	150,201	47,210
Revenue from e-payment fees	72,522	56,542	11,159	4,810
Advertising and marketing revenues	70,027	53,816	8,193	825
Other income	5,319	3,599	4,296	1,388
Total Gross Revenue	1,671,670	1,247,676	459,306	158,530
Customers cash back	(1,926)	(26,799)	0	0
Customer Compensation	(41,775)	(34,819)	(13,036)	(4,473)
Promotions	(25,493)	(26,490)	(4,909)	(1,917)
Net Revenue	1,602,477	1,159,568	441,361	152,140

Year-on-year comparison of key metrics

Description SAR ‘000	2022	2021	Change	Change %
Sales/Revenues	1,602,477	1,159,568	442,909	38.2
Cost of sales	(1,243,297)	(914,043)	(329,254)	36
Total Profit	359,180	245,525	113,655	46.3
Other Operational Revenues	6,451	484	5,967	1232.9
Other Operational Expenses	(301,611)	(126,232)	175,379	138.9
Operational Profit (Loss)	64,020	119,777	(55,757)	-46.6

Segment Reporting

In 2022

Segment Reporting SAR Mn	Delivery Platforms	Logistics	Others	Eliminations	Total 2022
Gross Revenues	1,666.5	310.4	5.2	-310.4	1,671.7
Customer Compensations	-41.8	0.0	0.0	0.0	-41.8
Customer Promotions & Cash back	-27.4	0.0	0.0	0.0	-27.4
Net Revenues	1,597.3	310.4	5.2	-310.4	1,602.5
Direct Costs	-1,209.2	-336.6	-5.5	313.6	-1,237.6
Operating Costs (S&M and G&A)	-200.1	-3.0	-1.1	0.0	-204.2
Expected Credit Losses	3.8	0	0	0	3.8
Other Operating Income	2.7	0	0	0	2.7
Adj. EBITDA	194.5	-29.2	-1.4	3.2	167.1
	11.7%	-9.4%	-26.7%	-1.0%	10.0%
Other Drivers Costs (Idle Capacity)	0.0	-79.5	0.0	0.0	-79.5
Depreciation and Amortization	-6.9	-13.3	-3.2	0.0	-23.5
Other Income and Investment Results	21.6	0.6	1.8	0.0	24.0
Financing cost	-0.4	-2.4	-0.4	0.0	-3.2
Zakat	-28.3	0.0	0.0	0.0	-28.3
Net Income (Loss) for the Year	180.4	-123.9	-3.2	3.2	56.5

In 2021

Segment Reporting SAR Mn	Delivery Platforms	Logistics	Others	Eliminations	Total 2021
Gross Revenues	1,246.2	110.7	1.5	-110.7	1,247.7
Customer Compensations	-34.8	0	0	0	-34.8
Customer Promotions & Cash back	-53.3	0	0	0	-53.3
Net Revenues	1,158.1	110.7	1.5	-110.7	1,159.6
Direct Costs	-906.5	-116.4	-1.8	110.7	-914.0
Operating Costs (S&M and G&A)	-116.9	-0.7	-0.1	0.0	-117.7
Expected Credit Losses	-2.5	0	0	0	-2.5
Other Operating Income	0.0	0	0	0	0.0
Adj. EBITDA	132.2	-6.4	-0.4	0.0	125.3
% of Gross Revenue	10.6%	-5.8%	-27.3%	0.0%	10.0%
Other Drivers Costs (Idle Capacity)	0.0	0.0	0.0	0.0	0.0
Depreciation and Amortization	-5.6	0.0	0.0	0.0	-5.6
Other Income and Investment Results	0.5	0.0	8.2	0.0	8.7
Financing cost	-0.5	0.0	-0.5	0.0	-0.9
IPO Expense	-6.2	0.0	0.0	0.0	-6.2
Zakat	-4.5	0.0	-0.1	0.0	-4.6
Net Income (Loss) for the Year	115.9	-6.4	7.3	0.0	116.7

The Jahez Group achieved an increase of 34% in its Gross Revenues for the year 2022 due to the increase in delivery fees by 32.9%, commission revenue by 37.3% and other revenues by 29.8%. This increase is mainly due to the increase in Gross Merchandise Value (GMV) in 2022 by 28.4% reaching SAR 4.3 Bn (SAR 5.8 Bn GOV) compared to SAR 3.3 Bn (SAR 4.5 Bn GOV) in 2021 due to the increase in number of orders by 33.8% in 2022 to reach 69.0 Mn orders, compared to 51.6 Mn orders in 2021 due to the increase by 35.3% in average number of users in 2022, compared to last year and the increase in the monthly average orders per user to reach 4.8 orders in 2022, compared to 4.7 orders in last year, while the Average Order Value (AOV) decreased in 2022 reaching SAR 62.2 compared to SAR 64.8 last year. Also, the average take rate increased in 2022 to reach 12.5%, compared to 11.6% in last year, in addition to increase in merchant number by Dec-22 to reach 10,648 restaurants compared to 7,061 restaurants of the same period last year.

As for the Adjusted Earnings before interest, taxes, depreciation and amortization (Adj.EBITDA) for 2022, it has reached SAR 167.1 Mn compared to SAR 125.3 Mn for last year, with an increase of 32.8%, which represents 10% of Gross Revenues at a steady rate for 2022 and 2021. Adjusted Earnings before interest, taxes, depreciation and amortization (Adj.EBITDA) are broken by the operating segments of the Group:

Adj.EBITDA (SAR Mn)	Delivery Plat- forms Segment	Logistic Segment	Others	Eliminations/ Amendments	Total
2022	194.5	-29.2	-1.4	3.2	167.1
2021	132.2	-6.4	-0.4	0	125.3

Delivery Platforms Segment :

Adj. EBITDA for the Platforms Segment reached SAR 194.5 Mn (11.7% of gross revenue and 3.4% of the GOV) with an increase of 47% in 2022 compared to SAR 132.2 Mn (10.6% of Gross Revenue and 2.9% of the GOV) in 2021. This was mainly driven by the growth of revenues and the geographical expansion around the Kingdom by increasing the number of cities in which the group operates in to reach 90 cities and the increase of efficiency in operations with a strong operational cost control and the effect of economies of scale through orders growth. This increase was achieved despite the costs related to the international expansion where the Group launched its operation in Bahrain and Kuwait during 2022, as well as the developments in Direct Commerce platforms (PIK, BLU Store) which will have material contribution in revenues starting 2023.

Logistic segment:

In line with the requirements of the concerned governmental entities, the Group started during 2022 the implementation of its own fleet for logistic services which resulted in an Adj. EBITDA in 2022 for the logistic segment around SAR -29.2 Mn. This loss was mainly due to the high costs related to the fleet and the limited productivity for new drivers during the training period. Currently, the Group has a fleet with a high level of professionalism and productivity, securing an important portion of orders for its delivery platforms and enabling the Group to be one of the major players in last-mile delivery segment.

Others:

Adj. EBITDA reached SAR -1.4 Mn related to the Group activities regarding cloud kitchens and the investments in Red Color Company.

As for the Net Profit of the year, the net profit attributable to the Shareholders of the Parent Company decreased by 49.6% reaching SAR 58.9 Mn in 2022 compared to SAR 117.0 Mn in 2021.

Net Profit of the Group also decreased by 52% reaching SAR 56.5 Mn compared to SAR 116.7 Mn in 2021. A breakdown of the reasons for the change in profits according to operating segments:

Net Income

(SAR Mn)	Platform Segment	Logistic Segment	Others	Eliminations/ Modifications	Total
2022	180.4	-123.9	-3.2	3.2	56.5
2021	115.9	-6.4	7.3	0.0	116.7

Platforms segment:

Net Income for the platforms segment reached SAR 180.4 Mn, increased by 56% compared to the previous year. The increase is due to the revenue growth and the effect of economies of scale based on the growth of orders and the continuous cost efficiency, in addition to the profit on short term deposit certificates (Murabaha). It is also worth noting that Zakat Expense for the year 2022 increased exceptionally reaching SAR 28.3 Mn due to the addition of proceeds from the initial Public Offering to the Zakat base.

Logistic segment:

Despite the increase in segment revenues by 180.4% compared to last year, the loss of the segment reached SAR -123.8 Mn in 2022 compared to SAR -6.4 Mn the previous year, due to non-recurring expenses amounting to SAR -79.5 Mn 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 beyond our control reasons as well as other driver related governmental expenses.

The segment faced serious challenges related to the inability of existing stakeholders to absorb the pace of driver onboarding according to the agreed plan with regulators.

In fact, after the COVID-19 pandemic, with the process of importing drivers frozen out, most manpower recruitment agencies faced a major competition and pressure due to the increased demand for the driver profession locally and in the Gulf in the same period resulting in a low level of commitment from the recruitment agencies to the agreed plans which led to an overlap in onboarding schedules and caused a disruption to car receiving plans in addition to the lack of appointments for issuing driver licenses.

Others:

Net Income from the Other Segment reached SAR -3.2 Mn and is related to the Group activities regarding cloud kitchens and investments in the Red Color Company.