Al Othaim net profit drops 10% in H1 2019

04/08/2019 Argaam Exclusive

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Share Price

12.12
(0.04) (0.33 %)

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

Abdullah Al Othaim Markets Co. reported a net profit after zakat and tax of SAR 127.1 million for the first half of 2019, down 10.2 percent year-on-year (YoY), affected by adopting the International Financial Reporting Standards (IFRS 16), as well as higher operating costs .



Financials (M)

Item 6m 2018 6m 2019 Change‬
Revenues 3,820.73 4,130.42 8.1 %
Gross Income 716.55 780.63 8.9 %
Operating Income 89.91 106.35 18.3 %
Net Income 141.37 127.07 (10.1 %)
Average Shares 900.00 900.00 -
EPS (Riyals) 0.16 0.14 (10.1 %)

The firm's net profit for Q2 2019 fell 20.8 percent YoY to SAR 58.7 million due to adopting IFRS 16, an increase in operating costs and lower profit share from associates.

 

On a sequential basis, Q2 2019 net profit declined 14 percent from the previous quarter on lower profit margins driven by the promotion season, higher operating costs and a decline in profit share from associates.



Current Quarter Comparison (M)

Compared With The
Item Q2 2018 Q2 2019 Change‬
Revenues 2,022.47 2,171.10 7.3 %
Gross Income 375.18 394.15 5.1 %
Operating Income 44.73 48.24 7.9 %
Net Income 74.11 58.73 (20.7 %)
Average Shares 900.00 900.00 -
EPS (Riyals) 0.08 0.07 (20.7 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
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
Q3 2016 1,569.57 16.4 % 271.63 22.7 % 36.19 (2.4 %) 0.04
Q4 2016 1,907.19 22.8 % 362.34 14.4 % 95.50 7.0 % 0.11
Q1 2017 1,696.23 5.6 % 319.69 20.4 % 60.15 29.0 % 0.07
Q2 2017 1,935.88 (2.0 %) 356.38 14.1 % 71.21 43.1 % 0.08
Q3 2017 1,627.85 3.7 % 318.56 17.3 % 150.62 316.2 % 0.17
Q4 2017 1,971.19 3.4 % 444.98 22.8 % 167.52 75.4 % 0.19
Q1 2018 1,798.26 6.0 % 341.54 6.8 % 67.26 11.8 % 0.07
Q2 2018 2,022.47 4.5 % 375.18 5.3 % 74.11 4.1 % 0.08
Q3 2018 1,744.69 7.2 % 339.78 6.7 % 54.31 (63.9 %) 0.06
Q4 2018 1,939.04 (1.6 %) 474.84 6.7 % 106.92 (36.2 %) 0.12
Q1 2019 1,959.32 9.0 % 386.48 13.2 % 68.34 1.6 % 0.08
Q2 2019 2,171.10 7.3 % 394.15 5.1 % 58.73 (20.7 %) 0.07

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
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 %
Q3 2016 17.39 % 4.33 % 3.44 %
Q4 2016 17.17 % 4.40 % 3.42 %
Q1 2017 17.71 % 4.66 % 3.44 %
Q2 2017 18.43 % 4.91 % 3.76 %
Q3 2017 18.93 % 5.13 % 3.93 %
Q4 2017 19.91 % 5.69 % 4.67 %
Q1 2018 19.93 % 5.61 % 4.70 %
Q2 2018 19.95 % 5.70 % 4.68 %
Q3 2018 19.92 % 5.61 % 4.66 %
Q4 2018 20.41 % 5.79 % 4.13 %
Q1 2019 20.56 % 6.26 % 4.05 %
Q2 2019 20.41 % 6.59 % 3.78 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
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
Q3 2016 900.00 0.25 0.26 1.27
Q4 2016 900.00 0.25 0.27 1.37
Q1 2017 900.00 0.27 0.27 1.44
Q2 2017 900.00 0.29 0.30 1.41
Q3 2017 900.00 0.42 0.31 1.58
Q4 2017 900.00 0.50 0.38 1.66
Q1 2018 900.00 0.51 0.38 1.74
Q2 2018 900.00 0.51 0.39 1.67
Q3 2018 900.00 0.40 0.39 1.73
Q4 2018 900.00 0.34 0.34 1.84
Q1 2019 900.00 0.34 0.35 1.79
Q2 2019 900.00 0.32 0.33 1.56

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
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
Q3 2016 15.47 14.89 3.01
Q4 2016 19.50 18.44 3.61
Q1 2017 20.49 20.12 3.83
Q2 2017 19.67 19.34 4.06
Q3 2017 14.62 19.58 3.88
Q4 2017 12.31 16.40 3.70
Q1 2018 15.18 20.11 4.44
Q2 2018 14.73 19.47 4.51
Q3 2018 17.30 17.88 4.04
Q4 2018 20.88 20.41 3.81
Q1 2019 21.37 20.89 4.02
Q2 2019 24.19 23.62 4.98

Business Segments (Million)

Compared With The
Period Retail and wholesale Head office and leasing and others 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 -
Q3 2016 1,583.28 28.54 -
Q4 2016 1,928.23 38.64 -
Q1 2017 1,875.71 - -
Q2 2017 2,165.24 - -
Q3 2017 1,750.81 9.20 -
Q4 2017 2,189.82 - -
Q1 2018 1,772.52 - 25.74
Q2 2018 1,987.55 - 34.92
Q3 2018 1,701.84 - 42.85
Q4 2018 1,897.55 - 52.15
Q1 2019 1,902.26 - 57.40
Q2 2019 2,113.62 - 57.98

Analysts Estimates (Million)

Item Q2 2019 (e) Q2 2019 (a) Change‬
Average 76.75 58.73 (23.5 %)

Estimates vs Actual (Million)

Item Q2 2019 (e) Q2 2019 (a) Change
SNB Capital 67.00 58.73 (12.3) %
AlJazira Capital 77.20 58.73 (23.9) %
OSOOL AND BAKHEET 77.80 58.73 (24.5) %
Al Rajhi Capital 85.00 58.73 (30.9) %

Current
Market Cap (M Riyal) 10,926.00
Enterprise Value (EV) (M) 10,592.02
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) 28.49
P/E (TTM) 22.43
Price/book 9.13
Return on Average Assets (%) (TTM) 7.4
Return on Average Equity (%) (TTM) 39.5

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