Almarai's H1 profit rises 6% to SAR 1 bln

23/07/2017 Argaam Exclusive

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Share Price

54.20
(0.10) (0.18 %)

Almarai Co. (ALMARAI)

 

Almarai Company, one of the largest poultry and dairy producers in the Gulf region, reported a net profit of SAR 1 billion in the first half of 2017, a 5.9 percent rise year-on-year (YoY) attributed to lower cost of sales and commodities, along with a decline in selling, general and administrative expenses.  



Financials (M)

Item 6m 2016 6m 2017 Change‬
Revenues 7,299.68 7,143.88 (2.1 %)
Gross Income 2,648.44 2,732.37 3.2 %
Operating Income 1,154.37 1,299.98 12.6 %
Net Income 947.04 1,002.38 5.8 %
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 0.95 1.00 5.8 %

The company’s net profit for the second quarter rose by 2.4 percent YoY at SAR 674 million due to lower cost of sales, improved production efficiency, and better cost management. 

 

When compared to the previous quarter, Q2 2017 net profit surged 105.3 percent, from SAR 328 million. Revenue in Q2 rose 11.1 percent due to the seasonal effect of the holy month of Ramadan. 



Current Quarter Comparison (M)

Compared With The
Item Q2 2016 Q2 2017 Change‬
Revenues 3,925.89 3,760.36 (4.2 %)
Gross Income 1,520.89 1,554.93 2.2 %
Operating Income 771.01 833.09 8.1 %
Net Income 658.38 674.11 2.4 %
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 0.66 0.67 2.4 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2008 1,119.07 38.7 % 416.26 33.5 % 162.20 32.0 % 0.17
Q2 2008 1,247.52 37.7 % 514.53 38.6 % 235.23 42.3 % 0.25
Q3 2008 1,388.53 37.2 % 572.86 37.5 % 293.68 57.8 % 0.31
Q4 2008 1,274.78 22.0 % 495.31 25.7 % 219.16 13.5 % 0.23
Q1 2009 1,326.08 18.5 % 508.25 22.1 % 197.37 21.7 % 0.21
Q2 2009 1,447.12 16.0 % 591.31 14.9 % 287.10 22.0 % 0.30
Q3 2009 1,547.44 11.4 % 697.63 21.8 % 363.43 23.8 % 0.38
Q4 2009 1,548.17 21.4 % 568.61 14.8 % 248.82 13.5 % 0.26
Q1 2010 1,559.49 17.6 % 570.03 12.2 % 234.10 18.6 % 0.23
Q2 2010 1,738.87 20.2 % 701.13 18.6 % 343.06 19.5 % 0.34
Q3 2010 1,833.74 18.5 % 796.45 14.2 % 424.51 16.8 % 0.42
Q4 2010 1,798.82 16.2 % 668.31 17.5 % 283.76 14.0 % 0.28
Q1 2011 1,743.57 11.8 % 634.15 11.2 % 235.25 0.5 % 0.24
Q2 2011 2,012.85 15.8 % 776.81 10.8 % 349.26 1.8 % 0.35
Q3 2011 2,105.28 14.8 % 861.72 8.2 % 429.70 1.2 % 0.43
Q4 2011 2,089.29 16.1 % 723.84 8.3 % 125.31 (55.8 %) 0.13
Q1 2012 2,040.35 17.0 % 707.30 11.5 % 242.12 2.9 % 0.24
Q2 2012 2,524.14 25.4 % 921.72 18.7 % 379.52 8.7 % 0.38
Q3 2012 2,672.99 27.0 % 1,012.19 17.5 % 449.97 4.7 % 0.45
Q4 2012 2,645.52 26.6 % 869.87 20.2 % 369.03 194.5 % 0.37
Q1 2013 2,411.03 18.2 % 827.80 17.0 % 255.09 5.4 % 0.26
Q2 2013 2,873.88 13.9 % 1,034.49 12.2 % 398.23 4.9 % 0.40
Q3 2013 2,926.09 9.5 % 1,104.95 9.2 % 475.62 5.7 % 0.48
Q4 2013 3,008.18 13.7 % 995.50 14.4 % 373.27 1.2 % 0.37
Q1 2014 2,718.92 12.8 % 918.95 11.0 % 273.58 7.2 % 0.27
Q2 2014 3,286.52 14.4 % 1,149.16 11.1 % 433.29 8.8 % 0.43
Q3 2014 3,269.37 11.7 % 1,390.72 25.9 % 539.44 13.4 % 0.54
Q4 2014 3,330.76 10.7 % 1,133.79 13.9 % 428.03 14.7 % 0.43
Q1 2015 3,037.31 11.7 % 1,110.34 20.8 % 306.48 12.0 % 0.31
Q2 2015 3,649.52 11.0 % 1,388.04 20.8 % 530.42 22.4 % 0.53
Q3 2015 3,523.58 7.8 % 1,446.52 4.0 % 595.12 10.3 % 0.60
Q4 2015 3,584.20 7.6 % 1,338.37 18.0 % 483.68 13.0 % 0.48
Q1 2016 3,373.79 11.1 % 1,127.55 1.5 % 288.66 (5.8 %) 0.29
Q2 2016 3,925.89 7.6 % 1,520.89 9.6 % 658.38 24.1 % 0.66
Q3 2016 3,530.34 0.2 % 1,485.41 2.7 % 664.26 11.6 % 0.66
Q4 2016 3,508.56 (2.1 %) 1,388.64 3.8 % 536.49 10.9 % 0.54
Q1 2017 3,383.53 0.3 % 1,177.43 4.4 % 328.27 13.7 % 0.33
Q2 2017 3,760.36 (4.2 %) 1,554.93 2.2 % 674.11 2.4 % 0.67

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 39.15 % 28.79 % 17.31 %
Q2 2008 39.36 % 28.40 % 17.55 %
Q3 2008 39.53 % 28.73 % 18.42 %
Q4 2008 39.74 % 25.34 % 18.10 %
Q1 2009 39.93 % 24.95 % 18.05 %
Q2 2009 39.87 % 26.48 % 18.34 %
Q3 2009 40.97 % 24.82 % 19.07 %
Q4 2009 40.31 % 26.70 % 18.69 %
Q1 2010 39.78 % 26.57 % 18.57 %
Q2 2010 39.68 % 25.16 % 18.60 %
Q3 2010 39.46 % 27.32 % 18.72 %
Q4 2010 39.47 % 27.21 % 18.55 %
Q1 2011 39.35 % 26.97 % 18.08 %
Q2 2011 38.92 % 26.49 % 17.50 %
Q3 2011 38.39 % 25.84 % 16.94 %
Q4 2011 37.69 % 25.62 % 16.35 %
Q1 2012 37.22 % 25.26 % 15.84 %
Q2 2012 36.70 % 26.67 % 15.26 %
Q3 2012 36.08 % 26.90 % 14.55 %
Q4 2012 35.53 % 27.71 % 14.58 %
Q1 2013 35.42 % 28.17 % 14.18 %
Q2 2013 35.31 % 27.64 % 13.89 %
Q3 2013 35.34 % 27.93 % 13.80 %
Q4 2013 35.32 % 27.87 % 13.39 %
Q1 2014 35.17 % 27.75 % 13.01 %
Q2 2014 34.91 % 27.35 % 12.86 %
Q3 2014 36.26 % 27.32 % 13.02 %
Q4 2014 36.43 % 27.38 % 13.12 %
Q1 2015 37.02 % 27.31 % 13.21 %
Q2 2015 37.80 % 27.58 % 14.18 %
Q3 2015 37.51 % 27.73 % 14.32 %
Q4 2015 38.30 % 27.91 % 14.61 %
Q1 2016 37.51 % 27.63 % 14.13 %
Q2 2016 37.71 % 28.38 % 14.20 %
Q3 2016 37.96 % 29.09 % 14.50 %
Q4 2016 38.51 % 30.87 % 15.00 %
Q1 2017 38.84 % 31.68 % 15.27 %
Q2 2017 39.53 % 32.67 % 15.56 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 947.83 0.75 0.75 3.45
Q2 2008 947.83 0.82 0.82 3.91
Q3 2008 947.83 0.93 0.93 3.94
Q4 2008 947.83 0.96 0.96 3.82
Q1 2009 960.87 0.98 0.98 3.60
Q2 2009 960.87 1.04 1.04 4.04
Q3 2009 960.87 1.11 1.11 4.37
Q4 2009 960.87 1.14 1.14 5.38
Q1 2010 1,000.00 1.13 1.13 5.58
Q2 2010 1,000.00 1.19 1.19 5.37
Q3 2010 1,000.00 1.25 1.25 5.88
Q4 2010 1,000.00 1.29 1.29 6.13
Q1 2011 1,000.00 1.29 1.29 6.40
Q2 2011 1,000.00 1.29 1.29 6.19
Q3 2011 1,000.00 1.30 1.30 6.46
Q4 2011 1,000.00 1.14 1.30 6.72
Q1 2012 1,000.00 1.15 1.31 7.18
Q2 2012 1,000.00 1.18 1.34 6.87
Q3 2012 1,000.00 1.20 1.36 7.26
Q4 2012 1,000.00 1.44 1.44 7.55
Q1 2013 1,000.00 1.45 1.45 7.76
Q2 2013 1,000.00 1.47 1.47 7.66
Q3 2013 1,000.00 1.50 1.50 8.07
Q4 2013 1,000.00 1.50 1.50 8.44
Q1 2014 1,000.00 1.52 1.50 8.76
Q2 2014 1,000.00 1.56 1.53 8.53
Q3 2014 1,000.00 1.62 1.60 8.99
Q4 2014 1,000.00 1.67 1.65 9.19
Q1 2015 1,000.00 1.71 1.71 9.37
Q2 2015 1,000.00 1.80 1.88 9.62
Q3 2015 1,000.00 1.86 1.94 9.99
Q4 2015 1,000.00 1.92 2.01 10.36
Q1 2016 1,000.00 1.90 2.00 10.51
Q2 2016 1,000.00 2.03 2.05 10.42
Q3 2016 1,000.00 2.09 2.09 11.08
Q4 2016 1,000.00 2.15 2.15 11.36
Q1 2017 1,000.00 2.19 2.19 11.01
Q2 2017 1,000.00 2.20 2.21 11.66

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 22.84 22.84 4.94
Q2 2008 24.67 24.67 5.17
Q3 2008 19.43 19.43 4.60
Q4 2008 17.73 17.73 4.46
Q1 2009 18.63 18.63 5.16
Q2 2009 18.00 18.00 4.69
Q3 2009 18.36 18.36 4.73
Q4 2009 17.34 17.34 3.53
Q1 2010 19.60 19.60 3.98
Q2 2010 18.48 18.48 4.09
Q3 2010 18.64 18.64 3.97
Q4 2010 20.03 20.03 4.20
Q1 2011 17.11 17.11 3.44
Q2 2011 16.85 16.85 3.52
Q3 2011 15.27 15.27 3.07
Q4 2011 20.03 17.56 3.40
Q1 2012 23.02 20.20 3.68
Q2 2012 21.89 19.27 3.75
Q3 2012 23.45 20.68 3.87
Q4 2012 17.67 17.67 3.37
Q1 2013 18.55 18.55 3.48
Q2 2013 19.13 19.13 3.68
Q3 2013 21.99 21.99 4.08
Q4 2013 21.02 21.02 3.74
Q1 2014 25.51 25.87 4.43
Q2 2014 27.08 27.45 4.94
Q3 2014 29.93 30.32 5.39
Q4 2014 27.56 27.91 5.02
Q1 2015 30.66 30.66 5.59
Q2 2015 29.98 28.72 5.62
Q3 2015 27.25 26.13 5.07
Q4 2015 24.57 23.36 4.54
Q1 2016 22.12 21.02 3.99
Q2 2016 21.60 21.39 4.20
Q3 2016 20.28 20.33 3.83
Q4 2016 25.51 25.47 4.82
Q1 2017 25.80 25.76 5.13
Q2 2017 35.02 34.97 6.62

Business Segments (Million)

Compared With The
Period Dairy & Juice Poultry Project Bakeries Productions Others.. Arable and Horticulture
Q1 2008 1,015.44 - 103.62 - -
Q2 2008 1,111.43 - 136.09 - -
Q3 2008 1,247.44 - 141.09 - -
Q4 2008 1,140.78 - 134.00 - -
Q1 2009 1,191.73 - 134.35 - -
Q2 2009 1,286.67 - 160.45 - -
Q3 2009 1,394.68 - 152.76 - -
Q4 2009 1,304.66 44.50 170.55 - 28.46
Q1 2010 1,341.86 35.96 178.26 - 3.42
Q2 2010 1,455.52 42.24 216.58 - 24.54
Q3 2010 1,578.11 49.87 202.10 - 3.65
Q4 2010 1,510.39 48.07 224.28 - 16.09
Q1 2011 1,467.84 63.47 211.39 - 0.88
Q2 2011 1,658.98 81.66 249.07 - 23.14
Q3 2011 1,777.55 75.03 228.42 - 24.28
Q4 2011 1,688.44 99.05 277.49 - 24.31
Q1 2012 1,635.68 95.40 293.54 - 15.73
Q2 2012 2,031.54 119.06 324.96 - 48.58
Q3 2012 2,203.10 127.43 302.85 - 39.61
Q4 2012 2,102.29 162.46 369.30 0.08 11.39
Q1 2013 1,901.16 162.12 340.90 6.85 -
Q2 2013 2,209.27 202.71 369.48 92.41 -
Q3 2013 2,354.11 212.94 324.76 34.29 -
Q4 2013 2,371.27 214.56 409.97 12.37 -
Q1 2014 2,125.60 211.10 373.32 8.91 -
Q2 2014 2,547.67 250.35 399.27 89.24 -
Q3 2014 2,603.15 273.64 365.99 26.59 -
Q4 2014 2,625.49 287.67 394.33 23.27 -
Q1 2015 2,353.44 308.98 355.53 19.36 -
Q2 2015 2,869.02 313.95 396.35 70.21 -
Q3 2015 2,756.98 314.83 399.51 52.27 -
Q4 2015 2,761.46 324.49 474.46 23.79 -
Q1 2016 2,577.33 320.83 452.27 23.36 -
Q2 2016 3,054.66 365.77 458.22 47.25 -
Q3 2016 2,722.80 277.65 467.02 62.87 -
Q4 2016 2,606.53 367.26 503.28 31.48 -
Q1 2017 2,494.13 356.37 468.91 64.13 -
Q2 2017 2,920.95 387.41 434.61 17.39 -

Analysts Estimates (Million)

Item Q2 2017 (e) Q2 2017 (a) Change‬
Average 670.27 674.11 0.57 %

Estimates vs Actual (Million)

Item Q2 2017 (e) Q2 2017 (a) Change
Hermes 673.00 674.11 0.2 %
Riyad Capital 668.00 674.11 0.9 %
SNB Capital 664.00 674.11 1.5 %
HSBC 685.00 674.11 (1.6) %
OSOOL AND BAKHEET 663.00 674.11 1.7 %
Al Rajhi Capital 661.00 674.11 2.0 %
Arbah Capital 689.00 674.11 (2.2) %
AlJazira Capital 689.40 674.11 (2.2) %
Albilad Capital 640.00 674.11 5.3 %

Current
Market Cap (M Riyal) 54,200.00
Enterprise Value (EV) (M) 63,337.56
Shares Outstanding ((M)) 1,000.00
EPS ( Riyal) (TTM) 2.11
Book Value (BV) ( Riyal) 18.34
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 25.73
P/E (TTM) 25.73
Price/book 2.96
Return on Average Assets (%) (TTM) 6.2
Return on Average Equity (%) (TTM) 11.8

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