Almarai net profit drops 9% in 9M

06/10/2019 Argaam Exclusive

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Share Price

54.50
0.20 0.37 %

Almarai Co. (ALMARAI)

Almarai Company reported a net profit after zakat and tax of SAR 1.5 billion for the first 9 months of 2019, an 8.6 percent year-on-year (YoY) decrease driven by higher financing costs.



Financials (M)

Item 9m 2018 9m 2019 Change‬
Revenues 10,176.65 10,647.34 4.6 %
Gross Income 4,064.13 4,073.17 0.2 %
Operating Income 2,142.57 2,056.75 (4.0 %)
Net Income 1,641.21 1,499.81 (8.6 %)
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 1.64 1.50 (8.6 %)

The dairy producer’s net profit for Q3 2019 fell 8.5 percent YoY to SAR 581.2 million, due to a SAR 24.8 million increase in impairment of financial assets, as well as higher financing costs.

 

On a sequential basis, Q3 2019 net profit slid by 0.2 percent compared to the previous quarter.



Current Quarter Comparison (M)

Compared With The
Item Q3 2018 Q3 2019 Change‬
Revenues 3,317.36 3,573.26 7.7 %
Gross Income 1,399.20 1,443.77 3.2 %
Operating Income 780.43 770.15 (1.3 %)
Net Income 634.96 581.25 (8.5 %)
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 0.63 0.58 (8.5 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
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
Q3 2017 3,372.92 (4.5 %) 1,516.00 2.1 % 667.01 0.4 % 0.67
Q4 2017 3,418.73 (2.6 %) 1,335.27 (3.8 %) 512.89 (4.4 %) 0.51
Q1 2018 3,232.21 (4.5 %) 1,254.43 6.5 % 344.87 5.1 % 0.34
Q2 2018 3,672.33 (2.3 %) 1,448.45 (6.8 %) 661.39 (1.9 %) 0.66
Q3 2018 3,317.36 (1.6 %) 1,399.20 (7.7 %) 634.96 (4.8 %) 0.63
Q4 2018 3,381.18 (1.1 %) 1,262.94 (5.4 %) 370.77 (27.7 %) 0.37
Q1 2019 3,308.89 2.4 % 1,163.91 (7.2 %) 336.03 (2.6 %) 0.34
Q2 2019 3,767.42 2.6 % 1,466.22 1.2 % 582.53 (11.9 %) 0.58
Q3 2019 3,573.26 7.7 % 1,443.77 3.2 % 581.25 (8.5 %) 0.58

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
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 %
Q3 2017 40.19 % 34.21 % 15.93 %
Q4 2017 40.07 % 34.18 % 15.66 %
Q1 2018 41.07 % 35.75 % 15.95 %
Q2 2018 40.55 % 36.32 % 15.96 %
Q3 2018 39.86 % 36.36 % 15.79 %
Q4 2018 39.44 % 36.05 % 15.53 %
Q1 2019 38.56 % 35.36 % 15.38 %
Q2 2019 38.42 % 34.75 % 14.70 %
Q3 2019 38.04 % 33.87 % 14.05 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
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
Q3 2017 1,000.00 2.21 2.23 12.26
Q4 2017 1,000.00 2.18 2.18 12.78
Q1 2018 1,000.00 2.20 2.20 13.11
Q2 2018 1,000.00 2.19 2.19 12.87
Q3 2018 1,000.00 2.15 2.15 13.39
Q4 2018 1,000.00 2.01 2.11 13.88
Q1 2019 1,000.00 2.00 2.10 14.24
Q2 2019 1,000.00 1.92 2.02 14.00
Q3 2019 1,000.00 1.87 1.97 14.58

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
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
Q3 2017 25.87 25.54 4.65
Q4 2017 24.63 24.63 4.20
Q1 2018 25.19 25.19 4.22
Q2 2018 27.63 27.63 4.69
Q3 2018 23.17 23.17 3.73
Q4 2018 23.86 22.72 3.46
Q1 2019 27.46 26.14 3.86
Q2 2019 27.80 26.42 3.82
Q3 2019 26.60 25.24 3.41

Business Segments (Million)

Compared With The
Period Dairy & Juice Poultry Project Bakeries Productions Others.. Arable and Horticulture
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 -
Q3 2017 2,570.11 328.31 436.67 37.83 -
Q4 2017 2,525.29 391.54 466.90 35.00 -
Q1 2018 2,356.95 420.64 405.47 49.15 -
Q2 2018 2,752.49 434.66 377.44 62.50 -
Q3 2018 2,405.25 453.37 411.60 47.14 -
Q4 2018 2,404.97 491.69 446.89 37.63 -
Q1 2019 2,333.97 499.50 421.07 54.35 -
Q2 2019 2,782.58 527.14 394.60 60.88 -
Q3 2019 2,552.86 488.96 454.50 76.94 -

Analysts Estimates (Million)

Item Q3 2019 (e) Q3 2019 (a) Change‬
Average 592.45 581.25 (1.9 %)

Estimates vs Actual (Million)

Item Q3 2019 (e) Q3 2019 (a) Change
Riyad Capital 579.00 581.25 0.4 %
Al Rajhi Capital 567.00 581.25 2.5 %
AlJazira Capital 556.80 581.25 4.4 %
SNB Capital 667.00 581.25 (12.9) %

Current
Market Cap (M Riyal) 54,500.00
Enterprise Value (EV) (M) 63,637.56
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) 25.87
P/E (TTM) 25.87
Price/book 2.97
Return on Average Assets (%) (TTM) 6.2
Return on Average Equity (%) (TTM) 11.8

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