Jahez Delivers Record Q3 & 9M, Highest-Ever Orders & Adj. EBITDA, 30%+ GMV Growth

Jahez International Company for Information System Technology ("Jahez" or the "Group", trading under 9526 on the Saudi Exchange’s Nomu – parallel market) has disclosed its financial outcomes for the third quarter (Q3) and the nine months (9M) ending on September 30, 2024. The company achieved remarkable figures in both Q3 and 9M, showcasing substantial growth in total orders and profitability. Notably, the Gross Merchandise Value (GMV) surged by 30%, alongside market share expansions in both the Kingdom of Saudi Arabia (KSA) and international markets, while the Group broadened its portfolio across various sectors.

Key Financial Highlights

- Gross Order Value (GOV) saw a significant increase of 26.7% year-on-year (YoY), reaching SAR 2.3 billion in Q3 2024 (compared to SAR 1.8 billion in Q3 2023).

- Gross Merchandise Value (GMV) rose by 29.5% YoY to SAR 1.7 billion (up from SAR 1.3 billion in Q3 2023), with a remarkable 4.1-fold increase in non-KSA platforms and a 21% YoY growth in KSA platforms.

- Net Revenues climbed by 33.1% YoY to SAR 601.3 million, compared to SAR 451.6 million in Q3 2023.

- A record total of 28 million orders in Q3, marking a 25.2% YoY increase (up from 22.3 million in Q3 2023).

- Adjusted EBITDA reached SAR 90 million, representing 15% of Net Revenue, and signifying a significant increase from SAR 38 million in Q3 2023, with a total of SAR 160.5 million in 9M 2024 (up from SAR 105.2 million in 9M 2023).

Strong Revenue and Order Growth

The Jahez Group reported outstanding performance in Q3 and the first nine months of 2024, highlighted by robust revenue growth and rising order volumes. The Group's Q3 2024 Net Revenue totalled SAR 601.3 million, representing a 33.1% YoY growth. This impressive performance was primarily driven by:

- Order Volume: A 25.2% YoY increase in total orders led to a record 78 million orders in 9M 2024, accompanied by a 26.3% rise in Active Users, totalling 4.2 million, compared to 3.3 million in 9M 2023.

- Take Rate (%): Increased from 13.4% in Q3 2023 to 14.6% in Q3 2024, indicating successful negotiations with key partners and enhanced transaction value.

- Average Order Value (AOV): Rose to SAR 61.7 from SAR 59.7 in Q3 2023, bolstered by strategic bundled offerings that added customer value.

Other revenue streams also saw significant growth, achieving a YoY increase of 1.6 times to SAR 79.0 million, primarily driven by optimized advertising revenue in KSA and the introduction of advertising opportunities in Kuwait and Bahrain, as well as expansion in new verticals.

Improvement in Profitability Metrics

Jahez experienced a 3.8 percentage point increase in gross profit margin, reaching 26.2% in Q3 2024 (up from 22.4% in Q3 2023). This enhancement was driven by cost efficiencies alongside revenue growth, supporting the Group’s growth strategies in key cities throughout KSA. These accomplishments, coupled with disciplined cost management, propelled the Group’s Net Profit to a record SAR 79.7 million in Q3 2024, 2.7 times increase compared to SAR 28.9 million in Q3 2023.

Adjusted EBITDA Growth

In the first nine months of 2024, Jahez achieved a 52% YoY increase in adjusted EBITDA, totalling SAR 160.5 million (representing 9.9% of net revenue). Specifically, Q3 2024 saw adjusted EBITDA reach SAR 90 million (15% of net revenue), compared to SAR 38 million in Q3 2023 (8.4% of net revenue). This growth was supported by strong core business performance and reduced losses from non-KSA platforms and other sectors.

The KSA platforms demonstrated consistent growth, with an adjusted EBITDA of SAR 217.8 million in 9M 2024 (15.3% of Net Revenue), marking a 31% YoY increase. This growth underscores the efficiency and scale of the Group's core operations while supporting its strategic expansion.

In Q3 2024, the KSA Platforms segment achieved a remarkable 67% YoY increase in Adjusted EBITDA, benefiting from economies of scale and cost optimization initiatives. Conversely, the Non-KSA Platforms segment managed to narrow its losses by 64% YoY, showcasing improved operational efficiencies and revenue growth in Kuwait and Bahrain.

Logistics Segment Performance

The Logistics Segment reported an Adjusted EBITDA decline of 39% YoY in Q3 2024, influenced by strategic investments aimed at fleet expansion and enhancing logistical capabilities to comply with evolving regulations. Meanwhile, the ‘Others’ Segment decreased losses by 43% YoY in Q3 2024, demonstrating progress in diversifying revenue streams across newer verticals.

The Group's Net Profit rose by 41% YoY, reaching SAR 122.7 million by the end of 9M 2024, with Q3 2024 alone contributing SAR 79.7 million—a substantial 175.5% increase YoY. This growth was fuelled by optimized customer promotions targeting delivery offers, controlled marketing expenditures, and reduced delivery costs, all contributing to enhanced overall profitability.

Segment Highlights for 9M 2024

Delivery Platforms – KSA Segment

- KSA platforms GMV rose by 21% YoY to SAR 4.2 billion, with a 16% increase in order volume. Orders from cities beyond Riyadh accounted for 43% of total orders, capturing a larger market share in a dynamic competitive environment.

- Adjusted EBITDA grew by 31% YoY to SAR 217.8 million (15.3% of Net Revenue), up from SAR 166.2 million (13.3% of Net Revenue) in 9M 2023, reflecting improved unit economics.

- The segment reported a Net Profit of SAR 222.3 million, marking a significant increase of 28% from SAR 173.4 million in 9M 2023.

Delivery Platforms – Non-KSA Segment

- Non-KSA platforms experienced a substantial GMV increase to SAR 522 million in 9M 2024, with total orders growing 4.1 times to 10.7 million, up from SAR 127 million GMV and 3 million orders in 9M 2023.

- Average Order Value (AOV) rose significantly by 15% YoY, reaching SAR 49 per order, compared to SAR 41.3 in 9M 2023, driven by an optimized merchant mix and regional demand in Kuwait and Bahrain.

- Active users doubled YoY, demonstrating increased customer engagement in the newly scaled markets.

- Net losses narrowed to SAR 58.6 million in 9M 2024, primarily due to enhanced operational volumes from full-scale operations in Kuwait in 2024 compared to partial operations in 2023, alongside improvements in unit economics.

Logistics Segment

- The Logistics Segment reported an adjusted EBITDA of SAR 13.5 million in 9M 2024, compared to SAR 23.1 million in 9M 2023, impacted by reduced internal pricing in line with decreasing costs from external logistics providers.

- Net losses increased to SAR 15.4 million, up from SAR 2.1 million in 9M 2023, attributed to aggressive provisions for Expected Credit Losses (ECL) on freelancers' receivables.

- The fleet expanded to over 3,600 internal drivers, positioning Jahez favourably within regulatory frameworks.

Others Segment

The Group's Others Segment reported net losses of SAR 25.6 million in 9M 2024, mainly due to changes in the fair value of the Red Colour minority investment portfolio and ramp-up costs in new verticals, including Marn, Sol, and Co, as these investments continue to progress.

Conclusion

At the close of Q3 2024, Jahez maintained a network of over 43,000 merchant branches, 4.2 million active users, and more than 57,000 delivery partners. To achieve its goal of expanding its customer and merchant base, Jahez has developed several service offerings, providing a comprehensive range of delivery and logistical services through its main business streams.

> The Jahez Platform serves as the core of the Group’s operations, facilitating order generation for merchants alongside complete logistical support and payment collection. This platform effectively connects merchants, customers, and delivery partners in Saudi Arabia, Bahrain, and Kuwait through a user-friendly mobile application, ensuring a swift, seamless, and nearly automated end-to-end delivery experience.

> PIK Platform, established in November 2020, focuses on quick commerce (q-commerce), connecting customers with a variety of brands within two to three hours, thereby expanding beyond food delivery to include various retail goods, from fashion to electronics.

> BLU Store, launched in 2022 in partnership with AlHilal Club Investment Company, provides online services through the “BLU Store” application, specializing in marketing products from various brands.