Al Othaim’s H1 net profit down 7% on higher expenses

27/07/2016 Argaam Exclusive

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Share Price

11.12
(0.08) (0.71 %)

Abdullah Al Othaim Markets Co. (A.OTHAIM MARKET)

 

Abdullah Al Othaim Markets Co. reported a net profit of SAR 97.3 million for the first half of 2016, a 6.9 percent year-on-year (YoY) drop attributed to increased SG&A expenses, higher cost of financing, and lower profit from investments.

 

“Also, the results of the current period included a precaution provision for a fire incident loss occurred during 2015 at one of the manufacturing facilities of a subsidiary, the financial impact of which amounting SR 8.6 million,” the company said in a statement.



Financials (M)

Item 6m 2015 6m 2016 Change‬
Revenues 3,133.57 3,582.38 14.3 %
Gross Income 460.35 577.78 25.5 %
Operating Income 63.34 63.33 0.0 %
Net Income 104.56 96.38 (7.8 %)
Average Shares 900.00 900.00 -
EPS (Riyals) 0.12 0.11 (7.8 %)

 

Al Othaim’s Q2 net profit fell 9.6 percent YoY to SAR 50.3 million due to higher SG&A expenses resulting from expansions, as well as increased cost of financing. When compared to Q1, however, second-quarter net earnings rose 7 percent on a 23.2 percent rise in sales.



Current Quarter Comparison (M)

Compared With The
Item Q2 2015 Q2 2016 Change‬
Revenues 1,725.54 1,976.23 14.5 %
Gross Income 247.99 312.31 25.9 %
Operating Income 35.03 28.75 (17.9 %)
Net Income 55.66 49.76 (10.6 %)
Average Shares 900.00 900.00 -
EPS (Riyals) 0.06 0.06 (10.6 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2007 - - - - - - -
Q2 2007 - - - - - - -
Q3 2007 732.74 42.2 % 36.16 15.7 % 18.61 (15.7 %) 0.02
Q4 2007 601.81 41.2 % 26.26 76.3 % 14.80 21.8 % 0.02
Q1 2008 671.75 - 36.69 - 23.50 - 0.03
Q2 2008 716.24 - 23.97 - 14.45 - 0.02
Q3 2008 780.89 6.6 % 23.96 (33.7 %) 14.19 (23.7 %) 0.02
Q4 2008 671.64 11.6 % 33.58 27.9 % 10.13 (31.6 %) 0.01
Q1 2009 717.56 6.8 % 23.96 (34.7 %) 16.36 (30.4 %) 0.02
Q2 2009 723.85 1.1 % 27.48 14.7 % 19.51 35.0 % 0.02
Q3 2009 861.61 10.3 % 35.33 47.5 % 25.20 77.6 % 0.03
Q4 2009 762.12 13.5 % 51.00 51.9 % 16.46 62.5 % 0.02
Q1 2010 779.56 8.6 % 37.59 56.9 % 31.74 94.1 % 0.04
Q2 2010 821.67 13.5 % 38.46 39.9 % 31.32 60.6 % 0.03
Q3 2010 941.39 9.3 % 42.72 20.9 % 45.87 82.0 % 0.05
Q4 2010 879.81 15.4 % 63.20 23.9 % 53.00 222.0 % 0.06
Q1 2011 934.19 19.8 % 45.06 19.9 % 36.50 15.0 % 0.04
Q2 2011 987.16 20.1 % 43.82 13.9 % 41.10 31.2 % 0.05
Q3 2011 1,096.14 16.4 % 42.42 (0.7 %) 35.99 (21.5 %) 0.04
Q4 2011 925.31 5.2 % 43.73 (30.8 %) 36.48 (31.2 %) 0.04
Q1 2012 976.27 4.5 % 35.50 (21.2 %) 33.86 (7.3 %) 0.04
Q2 2012 1,020.85 3.4 % 286.50 553.8 % 36.76 (10.6 %) 0.04
Q3 2012 1,122.32 2.4 % 184.90 335.9 % 40.68 13.0 % 0.05
Q4 2012 985.76 6.5 % 178.02 307.1 % 60.47 65.8 % 0.07
Q1 2013 1,066.43 9.2 % 164.06 362.2 % 40.81 20.5 % 0.05
Q2 2013 1,161.19 13.7 % 176.39 (38.4 %) 39.73 8.1 % 0.04
Q3 2013 1,193.14 6.3 % 199.41 7.8 % 41.94 3.1 % 0.05
Q4 2013 1,159.21 17.6 % 231.29 29.9 % 70.03 15.8 % 0.08
Q1 2014 1,222.98 14.7 % 204.66 24.7 % 46.47 13.9 % 0.05
Q2 2014 1,511.39 30.2 % 219.39 24.4 % 51.79 30.3 % 0.06
Q3 2014 1,208.79 1.3 % 195.07 (2.2 %) 42.29 0.8 % 0.05
Q4 2014 1,308.74 12.9 % 252.01 9.0 % 74.23 6.0 % 0.08
Q1 2015 1,408.03 15.1 % 212.36 3.8 % 48.89 5.2 % 0.05
Q2 2015 1,725.54 14.2 % 247.99 13.0 % 55.66 7.5 % 0.06
Q3 2015 1,348.87 11.6 % 221.39 13.5 % 37.09 (12.3 %) 0.04
Q4 2015 1,553.36 18.7 % 316.73 25.7 % 89.23 20.2 % 0.10
Q1 2016 1,606.16 14.1 % 265.48 25.0 % 46.62 (4.6 %) 0.05
Q2 2016 1,976.23 14.5 % 312.31 25.9 % 49.76 (10.6 %) 0.06

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 - - -
Q1 2008 - - -
Q2 2008 4.52 % 1.88 % 2.62 %
Q3 2008 4.00 % 1.44 % 2.42 %
Q4 2008 4.16 % 1.24 % 2.19 %
Q1 2009 3.65 % 0.81 % 1.91 %
Q2 2009 3.77 % 1.02 % 2.08 %
Q3 2009 4.05 % 1.43 % 2.39 %
Q4 2009 4.49 % 2.09 % 3.14 %
Q1 2010 4.84 % 2.51 % 3.57 %
Q2 2010 5.04 % 2.68 % 3.83 %
Q3 2010 5.14 % 2.62 % 4.36 %
Q4 2010 5.32 % 2.88 % 4.73 %
Q1 2011 5.30 % 2.93 % 4.81 %
Q2 2011 5.20 % 2.96 % 4.87 %
Q3 2011 4.99 % 2.67 % 4.43 %
Q4 2011 4.44 % 2.15 % 3.81 %
Q1 2012 4.15 % 1.79 % 3.57 %
Q2 2012 10.16 % 3.03 % 3.41 %
Q3 2012 13.61 % 3.88 % 3.51 %
Q4 2012 16.68 % 4.90 % 4.18 %
Q1 2013 19.39 % 5.62 % 4.26 %
Q2 2013 16.22 % 4.71 % 4.19 %
Q3 2013 16.29 % 4.60 % 4.15 %
Q4 2013 16.84 % 4.65 % 4.20 %
Q1 2014 17.14 % 4.57 % 4.18 %
Q2 2014 16.80 % 4.65 % 4.13 %
Q3 2014 16.67 % 4.66 % 4.13 %
Q4 2014 16.59 % 4.81 % 4.09 %
Q1 2015 16.16 % 4.69 % 3.99 %
Q2 2015 16.06 % 4.53 % 3.91 %
Q3 2015 16.12 % 4.45 % 3.73 %
Q4 2015 16.54 % 4.58 % 3.83 %
Q1 2016 16.87 % 4.62 % 3.81 %
Q2 2016 17.21 % 4.44 % 3.57 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2007 - - - -
Q2 2007 - - - -
Q3 2007 900.00 - - 0.26
Q4 2007 900.00 - - 0.26
Q1 2008 900.00 - - 0.29
Q2 2008 900.00 0.08 0.08 0.31
Q3 2008 900.00 0.07 0.07 0.32
Q4 2008 900.00 0.07 0.07 0.33
Q1 2009 900.00 0.06 0.06 0.35
Q2 2009 900.00 0.07 0.07 0.33
Q3 2009 900.00 0.08 0.08 0.36
Q4 2009 900.00 0.09 0.11 0.38
Q1 2010 900.00 0.10 0.12 0.35
Q2 2010 900.00 0.12 0.14 0.39
Q3 2010 900.00 0.14 0.16 0.44
Q4 2010 900.00 0.18 0.18 0.50
Q1 2011 900.00 0.19 0.19 0.46
Q2 2011 900.00 0.20 0.20 0.51
Q3 2011 900.00 0.19 0.19 0.55
Q4 2011 900.00 0.17 0.17 0.59
Q1 2012 900.00 0.16 0.16 0.63
Q2 2012 900.00 0.16 0.15 0.67
Q3 2012 900.00 0.16 0.16 0.71
Q4 2012 900.00 0.19 0.19 0.76
Q1 2013 900.00 0.20 0.20 0.80
Q2 2013 900.00 0.20 0.20 0.77
Q3 2013 900.00 0.20 0.20 0.82
Q4 2013 900.00 0.21 0.21 0.90
Q1 2014 900.00 0.22 0.22 0.95
Q2 2014 900.00 0.23 0.23 0.93
Q3 2014 900.00 0.23 0.23 0.98
Q4 2014 900.00 0.24 0.24 1.06
Q1 2015 900.00 0.24 0.24 1.11
Q2 2015 900.00 0.25 0.25 1.09
Q3 2015 900.00 0.24 0.24 1.13
Q4 2015 900.00 0.26 0.26 1.23
Q1 2016 900.00 0.25 0.26 1.17
Q2 2016 900.00 0.25 0.26 1.23

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 - - -
Q1 2008 - - -
Q2 2008 - - -
Q3 2008 13.49 13.49 3.12
Q4 2008 14.45 14.45 3.01
Q1 2009 15.48 15.48 2.70
Q2 2009 22.06 22.06 4.41
Q3 2009 14.96 14.96 3.26
Q4 2009 14.73 11.86 3.33
Q1 2010 14.47 12.04 4.22
Q2 2010 16.44 13.94 4.92
Q3 2010 12.47 10.85 3.95
Q4 2010 10.84 10.84 3.91
Q1 2011 12.46 12.07 4.97
Q2 2011 12.40 12.00 4.77
Q3 2011 13.04 12.59 4.39
Q4 2011 14.99 14.99 4.23
Q1 2012 13.89 14.41 3.62
Q2 2012 13.45 14.02 3.20
Q3 2012 13.48 14.04 3.10
Q4 2012 10.78 10.78 2.72
Q1 2013 10.48 10.48 2.60
Q2 2013 13.87 13.87 3.63
Q3 2013 16.11 16.11 4.01
Q4 2013 14.58 14.58 3.48
Q1 2014 20.10 20.10 4.67
Q2 2014 22.80 22.80 5.73
Q3 2014 24.55 24.55 5.88
Q4 2014 22.06 22.06 4.97
Q1 2015 21.92 21.92 4.75
Q2 2015 21.91 21.91 4.93
Q3 2015 19.12 19.12 4.06
Q4 2015 17.34 17.34 3.62
Q1 2016 16.93 16.32 3.67
Q2 2016 20.21 19.45 4.07

Business Segments (Million)

Compared With The
Period Retail and wholesale Head office and leasing and others
Q1 2011 934.19 32.34
Q2 2011 987.16 38.21
Q3 2011 1,096.14 40.08
Q4 2011 925.31 37.48
Q1 2012 976.27 36.44
Q2 2012 1,020.85 3.02
Q3 2012 1,122.32 20.32
Q4 2012 985.76 21.90
Q1 2013 1,066.43 21.50
Q2 2013 1,161.19 23.94
Q3 2013 1,193.14 23.78
Q4 2013 1,159.21 23.98
Q1 2014 1,222.98 24.03
Q2 2014 1,511.39 22.85
Q3 2014 1,208.79 26.42
Q4 2014 1,308.74 22.64
Q1 2015 1,408.03 26.15
Q2 2015 1,725.54 27.56
Q3 2015 1,348.57 26.93
Q4 2015 1,553.66 30.55
Q1 2016 1,640.02 28.03
Q2 2016 2,020.19 28.36

Analysts Estimates (Million)

Item Q2 2016 (e) Q2 2016 (a) Change‬
Average 61.80 49.76 (19.5 %)

Estimates vs Actual (Million)

Item Q2 2016 (e) Q2 2016 (a) Change
Albilad Capital 56.00 49.76 (11.1) %
KASB Capital 56.40 49.76 (11.8) %
Sico 60.30 49.76 (17.5) %
AlJazira Capital 61.10 49.76 (18.6) %
SNB Capital 64.00 49.76 (22.2) %
Alistithmar Capital 64.80 49.76 (23.2) %
Al Rajhi Capital 70.00 49.76 (28.9) %

Current
Market Cap (M Riyal) 10,008.00
Enterprise Value (EV) (M) 9,674.02
Shares Outstanding ((M)) 900.00
EPS ( Riyal) (TTM) 0.54
Book Value (BV) ( Riyal) 1.33
Par Value ( Riyal) 1.00
Adjusted P/E (Last12) 26.09
P/E (TTM) 20.55
Price/book 8.36
Return on Average Assets (%) (TTM) 7.4
Return on Average Equity (%) (TTM) 39.5

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