1. Executive Summary
June 2025 marked a steady month in overall performance for the F&B division, with notable growth in dairy and frozen goods, and stable demand across core markets. The UAE and Saudi Arabia remain key drivers of revenue, while North African markets showed moderate growth. Despite increased logistics costs, gross margins were preserved through dynamic pricing and efficient supplier negotiations.
2. Sales Performance
| Category | Revenue (USD) | MoM Change | YoY Change |
|---|---|---|---|
| Dairy Products | $2,150,000 | +8.3% | +21.5% |
| Beverages (non-alc) | $1,740,000 | +2.1% | +12.0% |
| Frozen Foods | $1,320,000 | +11.4% | +19.3% |
| Dry Goods & Snacks | $880,000 | -1.9% | +9.8% |
| Condiments & Sauces | $495,000 | +3.6% | +5.4% |
| Total | $6,585,000 | +5.4% | +14.9% |
Top-Selling Product: Full-fat Greek Yogurt
Highest Margin Product: Premium Spanish Olive Oil (52% GM)
New Accounts Opened: 13 (8 in UAE, 3 in Qatar, 2 in Bahrain)
3. Market Highlights
- UAE: Continued strong demand from premium supermarkets and hotel chains. Ramadan and post-Eid surge drove higher dairy and frozen category volumes.
- KSA: Significant new orders from a major hotel chain in Riyadh boosted Q2 results.
- Qatar & Oman: Moderate uptick as tourism rebounds and smaller retailers restock ahead of summer.
4. Supply Chain Update
- Shipping Delays: Port congestion in Jebel Ali caused a 3–5 day delay for 18% of shipments.
- Supplier Relations: Negotiated improved terms with two major suppliers in Spain and Italy (10% volume discount for Q3).
- Inventory Turnover: 4.8x (vs. 5.1x in May) – slightly slower due to overstock of dry goods.
5. Financial Metrics
| Metric | Value | Target/Benchmark |
|---|---|---|
| Gross Margin | 31.2% | ≥30% |
| Operating Margin | 14.6% | ≥12% |
| Inventory Days on Hand | 27 days | 25–30 days |
| A/R Days | 41 days | ≤45 days |
| Cash Conversion Cycle | 42 days | ≤50 days |
6. Challenges & Risks
- Rising Freight Costs: Ocean freight rates increased by 9% MoM; monitoring closely.
- Heat-sensitive Inventory: Need to invest in additional cold storage solutions as demand for frozen items grows.
- Currency Volatility: EUR/USD fluctuations impacting supplier invoices – hedging strategy being considered.
7. Strategic Actions Taken
- Launched targeted B2B marketing campaign focused on clean-label products.
- Hired a senior logistics manager to streamline customs clearance in GCC.
- Onboarded two new regional distributors in North Africa.
8. Forecast for July 2025
- Expected continued growth in frozen and beverage segments.
- Strategic focus on expanding high-margin gourmet lines and private-label goods.
- Exploring partnerships in East Africa and Central Asia for Q4 expansion.
9. Conclusion
June 2025 was a positive month overall, with solid sales growth, healthy margins, and operational improvements. The division is well-positioned for further expansion in Q3, though vigilance is required in managing logistics costs and inventory efficiency.