Savola’s H1 net profit plunges 62%

28/07/2016 Argaam Exclusive

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Share Price

45.50
(0.65) (1.41 %)

Savola Group (SAVOLA GROUP)

 

Savola Group, Saudi Arabia’s largest food products company, reported a net profit of SAR 339.6 million for the first half of 2016, a 62 percent year-on-year (YoY) drop attributed to one-off gains being booked in Q1-2015, increased foreign exchange losses of United Sugar Company of Egypt and the higher cost of financing.  



Financials (M)

Item 6m 2015 6m 2016 Change‬
Revenues 13,260.21 13,562.54 2.3 %
Gross Income 2,512.39 2,605.94 3.7 %
Operating Income 553.98 459.51 (17.1 %)
Net Income 904.88 372.90 (58.8 %)
Average Shares 533.98 533.98 -
EPS (Riyals) 1.69 0.70 (58.8 %)

Savola’s net profit for the second quarter fell 43.2 percent YoY to SAR 246.7 million due to lower gross profit and higher operating expenses as well as financing costs. Meanwhile, Q2 net earnings surged 165.5 percent compared to the previous quarter on higher sales and increased gross profit. 



Current Quarter Comparison (M)

Compared With The
Item Q2 2015 Q2 2016 Change‬
Revenues 7,036.49 7,140.78 1.5 %
Gross Income 1,353.24 1,332.79 (1.5 %)
Operating Income 326.05 217.40 (33.3 %)
Net Income 434.37 253.52 (41.6 %)
Average Shares 533.98 533.98 -
EPS (Riyals) 0.81 0.47 (41.6 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2007 2,247.62 16.9 % 378.12 18.6 % 137.46 1.2 % 0.27
Q2 2007 2,752.38 28.2 % 410.19 8.8 % 763.77 210.5 % 1.53
Q3 2007 2,779.50 8.6 % 463.44 2.0 % 151.39 (71.6 %) 0.30
Q4 2007 2,630.03 6.7 % 451.93 15.1 % 177.41 (23.9 %) 0.35
Q1 2008 2,996.43 33.3 % 481.74 27.4 % 250.48 82.2 % 0.50
Q2 2008 3,312.54 20.4 % 549.44 33.9 % 257.69 (66.3 %) 0.52
Q3 2008 3,919.41 41.0 % 511.13 10.3 % 158.04 4.4 % 0.32
Q4 2008 3,593.00 36.6 % 272.02 (39.8 %) (463.85) (361.5 %) (0.93)
Q1 2009 3,635.04 21.3 % 616.32 27.9 % 192.55 (23.1 %) 0.39
Q2 2009 4,356.80 31.5 % 776.33 41.3 % 212.50 (17.5 %) 0.43
Q3 2009 5,103.67 30.2 % 947.50 85.4 % 277.89 75.8 % 0.56
Q4 2009 4,821.69 34.2 % 767.16 182.0 % 268.62 157.9 % 0.54
Q1 2010 4,778.78 31.5 % 804.53 30.5 % 394.04 104.6 % 0.79
Q2 2010 4,868.07 11.7 % 709.82 (8.6 %) 207.65 (2.3 %) 0.42
Q3 2010 5,657.53 10.9 % 906.14 (4.4 %) 282.99 1.8 % 0.57
Q4 2010 5,725.10 18.7 % 994.74 29.7 % 2.02 (99.2 %) 0.00
Q1 2011 5,641.74 18.1 % 866.33 7.7 % 165.16 (58.1 %) 0.33
Q2 2011 6,312.58 29.7 % 959.88 35.2 % 230.74 11.1 % 0.46
Q3 2011 6,816.63 20.5 % 981.97 8.4 % 307.89 8.8 % 0.62
Q4 2011 6,424.75 12.2 % 1,162.55 16.9 % 498.59 24607.3 % 1.00
Q1 2012 6,588.97 16.8 % 995.71 14.9 % 242.31 46.7 % 0.48
Q2 2012 6,989.08 10.7 % 1,193.39 24.3 % 341.32 47.9 % 0.68
Q3 2012 6,869.78 0.8 % 1,161.19 18.3 % 405.22 31.6 % 0.81
Q4 2012 6,943.66 8.1 % 1,411.28 21.4 % 413.36 (17.1 %) 0.83
Q1 2013 7,189.86 9.1 % 1,390.62 39.7 % 295.20 21.8 % 0.58
Q2 2013 6,723.33 (3.8 %) 1,263.61 5.9 % 387.76 13.6 % 0.76
Q3 2013 6,320.13 (8.0 %) 1,167.37 0.5 % 457.36 12.9 % 0.90
Q4 2013 5,047.40 (27.3 %) 951.93 (32.5 %) 564.16 36.5 % 1.11
Q1 2014 6,240.84 (13.2 %) 1,092.94 (21.4 %) 423.26 43.4 % 0.79
Q2 2014 7,336.58 9.1 % 1,251.38 (1.0 %) 513.27 32.4 % 0.96
Q3 2014 6,150.04 (2.7 %) 1,150.73 (1.4 %) 701.43 53.4 % 1.31
Q4 2014 6,860.38 35.9 % 1,368.67 43.8 % 434.36 (23.0 %) 0.81
Q1 2015 6,223.71 (0.3 %) 1,159.16 6.1 % 470.51 11.2 % 0.88
Q2 2015 7,036.49 (4.1 %) 1,353.24 8.1 % 434.37 (15.4 %) 0.81
Q3 2015 5,603.56 (8.9 %) 1,238.87 7.7 % 371.56 (47.0 %) 0.70
Q4 2015 6,261.83 (8.7 %) 1,274.13 (6.9 %) 515.32 18.6 % 0.97
Q1 2016 6,421.75 3.2 % 1,273.15 9.8 % 119.38 (74.6 %) 0.22
Q2 2016 7,140.78 1.5 % 1,332.79 (1.5 %) 253.52 (41.6 %) 0.47

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2007 17.01 % 8.21 % 11.04 %
Q2 2007 16.31 % 8.57 % 15.54 %
Q3 2007 16.05 % 8.40 % 11.47 %
Q4 2007 16.37 % 7.79 % 11.82 %
Q1 2008 16.20 % 7.36 % 12.04 %
Q2 2008 16.61 % 7.05 % 7.14 %
Q3 2008 15.51 % 6.35 % 6.56 %
Q4 2008 13.13 % 7.49 % 1.46 %
Q1 2009 13.48 % 7.68 % 1.00 %
Q2 2009 14.03 % 8.25 % 0.64 %
Q3 2009 15.65 % 9.45 % 1.31 %
Q4 2009 17.34 % 9.16 % 3.54 %
Q1 2010 17.29 % 8.89 % 3.34 %
Q2 2010 16.50 % 8.17 % 3.22 %
Q3 2010 15.84 % 7.64 % 3.15 %
Q4 2010 16.24 % 8.34 % 3.82 %
Q1 2011 15.88 % 8.17 % 3.53 %
Q2 2011 15.97 % 8.13 % 3.41 %
Q3 2011 15.52 % 7.78 % 3.36 %
Q4 2011 15.76 % 7.23 % 4.17 %
Q1 2012 15.68 % 7.39 % 4.31 %
Q2 2012 16.16 % 7.80 % 4.61 %
Q3 2012 16.79 % 8.26 % 4.97 %
Q4 2012 17.38 % 8.64 % 4.95 %
Q1 2013 18.42 % 9.48 % 5.03 %
Q2 2013 18.85 % 9.69 % 5.25 %
Q3 2013 19.25 % 9.79 % 5.55 %
Q4 2013 18.88 % 9.44 % 5.95 %
Q1 2014 18.40 % 8.63 % 6.69 %
Q2 2014 17.89 % 8.17 % 6.88 %
Q3 2014 17.95 % 8.18 % 7.08 %
Q4 2014 18.29 % 7.92 % 7.07 %
Q1 2015 18.55 % 7.64 % 6.42 %
Q2 2015 19.15 % 7.48 % 6.33 %
Q3 2015 19.90 % 7.24 % 5.96 %
Q4 2015 20.00 % 6.42 % 5.41 %
Q1 2016 20.29 % 6.53 % 5.31 %
Q2 2016 20.13 % 6.32 % 4.74 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2007 500.00 2.30 2.08 12.49
Q2 2007 500.00 3.34 3.12 13.14
Q3 2007 500.00 2.57 2.35 13.43
Q4 2007 500.00 2.46 2.46 14.31
Q1 2008 500.00 2.69 2.69 14.06
Q2 2008 500.00 1.67 1.67 14.59
Q3 2008 500.00 1.69 1.69 13.84
Q4 2008 500.00 0.40 0.40 12.78
Q1 2009 500.00 0.29 0.29 12.95
Q2 2009 500.00 0.20 0.20 13.13
Q3 2009 500.00 0.44 0.44 13.39
Q4 2009 500.00 1.90 1.27 13.92
Q1 2010 500.00 2.31 1.27 14.74
Q2 2010 500.00 2.30 1.26 14.23
Q3 2010 500.00 2.31 1.27 14.47
Q4 2010 500.00 1.77 1.61 14.04
Q1 2011 500.00 1.32 1.55 14.02
Q2 2011 500.00 1.36 1.59 14.29
Q3 2011 500.00 1.41 1.65 14.56
Q4 2011 500.00 2.40 2.10 15.44
Q1 2012 500.00 2.56 2.25 16.57
Q2 2012 500.00 2.78 2.47 15.91
Q3 2012 500.00 2.97 2.67 16.29
Q4 2012 500.00 2.80 2.71 16.57
Q1 2013 508.50 2.86 2.77 15.94
Q2 2013 508.50 2.95 2.86 16.21
Q3 2013 508.50 3.06 2.96 16.64
Q4 2013 508.50 3.35 2.96 18.07
Q1 2014 533.98 3.43 3.05 18.56
Q2 2014 533.98 3.67 3.21 18.52
Q3 2014 533.98 4.12 3.29 19.36
Q4 2014 533.98 3.88 3.52 18.66
Q1 2015 533.98 3.97 3.19 18.92
Q2 2015 533.98 3.82 3.11 19.62
Q3 2015 533.98 3.20 2.87 19.24
Q4 2015 533.98 3.36 2.55 19.76
Q1 2016 533.98 2.70 2.52 18.43
Q2 2016 533.98 2.36 2.26 18.57

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2007 14.02 15.50 2.58
Q2 2007 9.25 9.90 2.35
Q3 2007 11.92 13.03 2.28
Q4 2007 15.55 15.55 2.67
Q1 2008 12.82 12.82 2.45
Q2 2008 23.13 23.13 2.65
Q3 2008 18.36 18.36 2.24
Q4 2008 More than 50 More than 50 2.02
Q1 2009 More than 50 More than 50 1.68
Q2 2009 More than 50 More than 50 1.81
Q3 2009 More than 50 More than 50 2.26
Q4 2009 16.95 25.46 2.32
Q1 2010 16.53 29.93 2.59
Q2 2010 16.28 29.62 2.63
Q3 2010 15.83 28.79 2.52
Q4 2010 19.27 21.26 2.43
Q1 2011 22.65 19.28 2.12
Q2 2011 21.33 18.23 2.03
Q3 2011 19.67 16.86 1.91
Q4 2011 12.75 14.60 1.98
Q1 2012 14.36 16.30 2.22
Q2 2012 13.33 14.98 2.33
Q3 2012 13.89 15.48 2.54
Q4 2012 15.23 15.76 2.58
Q1 2013 15.23 15.73 2.78
Q2 2013 17.07 17.62 3.16
Q3 2013 18.39 18.96 3.43
Q4 2013 19.66 22.29 3.47
Q1 2014 19.60 22.08 3.62
Q2 2014 18.83 21.48 3.73
Q3 2014 20.17 25.31 4.30
Q4 2014 20.28 22.36 4.22
Q1 2015 17.22 21.41 3.61
Q2 2015 17.92 21.99 3.49
Q3 2015 18.10 20.20 3.01
Q4 2015 14.97 19.72 2.54
Q1 2016 15.48 16.59 2.27
Q2 2016 15.45 16.16 1.96

Business Segments (Million)

Compared With The
Period Food sector Retail sector Food services Investments Plastic Manufacturing & Whole sale sector Disposals
Q1 2007 - 843.56 - 3.19 - 1,400.87 -
Q2 2007 - 934.88 - (0.79) - 1,818.30 -
Q3 2007 - 1,201.16 - 6.11 - 1,572.23 -
Q4 2007 - 1,245.18 - (3.68) - 1,388.53 -
Q1 2008 - 1,216.75 - - - 1,779.67 -
Q2 2008 - 1,315.45 - 20.17 - 1,976.92 -
Q3 2008 - 1,614.46 - 10.08 - 2,294.87 -
Q4 2008 - 1,972.98 - (30.25) - 1,650.27 -
Q1 2009 - 1,835.58 - - - 1,799.46 -
Q2 2009 - 1,895.71 - - - 2,461.09 -
Q3 2009 - 2,108.28 - - - 2,995.40 -
Q4 2009 - 2,080.53 - - - 2,741.16 -
Q1 2010 - 1,871.14 - - - 2,907.64 -
Q2 2010 - 1,902.50 - - - 2,965.56 -
Q3 2010 - 2,245.91 - - - 3,411.62 -
Q4 2010 12,026.53 2,163.12 - 154.59 883.98 (9284.82) (218.30)
Q1 2011 3,296.45 2,161.01 - 32.59 209.36 - (57.66)
Q2 2011 3,875.14 2,216.41 - 26.04 261.85 - (68.54)
Q3 2011 4,069.58 2,489.74 - 34.65 274.60 - (50.26)
Q4 2011 3,982.74 2,314.39 - 29.54 255.73 - (157.65)
Q1 2012 4,068.67 2,329.29 - 20.45 236.24 - (65.67)
Q2 2012 4,327.47 2,427.10 - 19.71 290.20 - (75.41)
Q3 2012 3,915.84 2,722.23 - 19.71 273.72 - (61.72)
Q4 2012 4,076.70 2,677.90 - 78.67 253.03 - (142.63)
Q1 2013 4,386.49 2,606.25 - 19.29 249.06 - (71.22)
Q2 2013 3,859.23 2,635.50 - 19.29 304.51 - (95.20)
Q3 2013 3,241.41 2,813.52 - 19.29 304.95 - (59.03)
Q4 2013 3,065.27 2,869.33 - 83.10 (858.51) - (111.80)
Q1 2014 3,463.82 2,818.18 - 16.37 - - (57.53)
Q2 2014 4,119.66 3,283.45 - 15.32 - - (81.85)
Q3 2014 3,336.91 2,868.20 - 15.33 - - (70.40)
Q4 2014 3,671.56 3,234.54 - 80.15 - - (125.88)
Q1 2015 3,086.66 3,192.49 - 14.69 - - (70.13)
Q2 2015 3,369.06 3,781.59 - 14.69 - - (128.85)
Q3 2015 2,553.93 3,091.95 - 14.69 - - (57.01)
Q4 2015 2,802.55 3,466.70 - 100.78 - - (108.20)
Q1 2016 2,924.81 3,271.22 283.55 13.75 - - (71.58)
Q2 2016 3,102.65 3,873.85 277.73 13.75 - - (127.20)

Analysts Estimates (Million)

Item Q2 2016 (e) Q2 2016 (a) Change‬
Average 328.10 253.52 (22.7 %)

Estimates vs Actual (Million)

Item Q2 2016 (e) Q2 2016 (a) Change
SNB Capital 262.00 253.52 (3.2) %
Albilad Capital 286.00 253.52 (11.4) %
OSOOL AND BAKHEET 299.40 253.52 (15.3) %
Al Rajhi Capital 309.00 253.52 (18.0) %
KASB Capital 484.10 253.52 (47.6) %

Current
Market Cap (M Riyal) 24,296.12
Enterprise Value (EV) (M) 31,953.94
Shares Outstanding ((M)) 533.98
EPS ( Riyal) (TTM) 1.60
Book Value (BV) ( Riyal) 15.86
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 32.70
P/E (TTM) 28.41
Price/book 2.87
Return on Average Assets (%) (TTM) 2.8
Return on Average Equity (%) (TTM) 10.1

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