Herfy food’s net profit up 12% to SAR 157.1m for the first nine months of 2014

30/09/2014 Argaam Exclusive

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Share Price

31.05
(0.40) (1.27 %)

Herfy Food Services Co. (HERFY FOODS)

Herfy Food Services Company, which owns and operates Herfy fast food restaurants, reported a net profit of SAR 157.1m for the nine months ended September 30, 2014, a 12% increase compared to the same period last year.

A net profit of SAR 56.7m was reported for Q3-2014 compared to SAR 52.4m in Q2.



Financials (M)

Item 9m 2013 9m 2014 Change‬
Revenues 630.11 667.36 5.9 %
Gross Income 199.78 219.39 9.8 %
Operating Income 135.84 146.65 8.0 %
Net Income 140.08 157.12 12.2 %
Average Shares 64.68 64.68 -
EPS (Riyals) 2.17 2.43 12.2 %

The company attributed the increase of the first nine months of 2014’s net profit compared to the same period last year to the increase of sales to 667.4 M SAR compared to 630.1 M SAR for the same period last year due to the opening of 25 new restaurants during the nine months of 2014, as well as the decrease of the cost of sales, and the increase of other income during Q3 of the current year where the company has achieved a capital gain of 13 M SAR generated from the sale of land owned by the company.

Q3-2014’s net profit increase compared to the same period last year was attributed to the increase of sales to 224.7 M SAR compared to 198.5 M SAR for the same period last year, as well as the decrease of the cost of sales, and the increase of other income during Q3 of the current year where the company has achieved a capital gain of 13 M SAR generated from the sale of land owned by the company.

The net profit increase of Q3-2014 compared to the previous period (Q2-2014) was attributed to the increase of other income during the third quarter of the current year, despite the decrease of the operation profit of the third quarter of 2014 compared to the previous quarter of 2014 is due to the variance in demand between both periods, as well as the increase of the selling and marketing and administrative expenses during the third quarter of 2014.



Current Quarter Comparison (M)

Compared With The
Item Q3 2013 Q3 2014 Change‬
Revenues 198.54 224.71 13.2 %
Gross Income 60.26 71.72 19.0 %
Operating Income 38.62 44.18 14.4 %
Net Income 42.40 56.72 33.8 %
Average Shares 64.68 64.68 -
EPS (Riyals) 0.66 0.88 33.8 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2005 - - - - - - -
Q2 2005 - - - - - - -
Q3 2005 - - - - - - -
Q4 2005 - - - - - - -
Q1 2006 - - - - - - -
Q2 2006 - - - - - - -
Q3 2006 - - - - - - -
Q4 2006 - - - - - - -
Q1 2007 - - - - - - -
Q2 2007 - - - - - - -
Q3 2007 - - - - - - -
Q4 2007 - - - - - - -
Q1 2008 - - - - - - -
Q2 2008 - - - - - - -
Q3 2008 - - - - - - -
Q4 2008 - - - - - - -
Q1 2009 122.50 - 37.83 - 23.76 - 0.37
Q2 2009 132.10 - 45.32 - 31.35 - 0.48
Q3 2009 133.16 - 43.53 - 29.92 - 0.46
Q4 2009 129.83 - 42.63 - 29.62 - 0.46
Q1 2010 136.19 11.2 % 44.41 17.4 % 28.15 18.5 % 0.44
Q2 2010 146.75 11.1 % 49.83 10.0 % 32.61 4.0 % 0.50
Q3 2010 145.82 9.5 % 47.79 9.8 % 30.43 1.7 % 0.47
Q4 2010 151.17 16.4 % 50.87 19.3 % 33.09 11.7 % 0.51
Q1 2011 159.30 17.0 % 50.63 14.0 % 32.55 15.6 % 0.50
Q2 2011 188.42 28.4 % 61.27 23.0 % 39.36 20.7 % 0.61
Q3 2011 172.52 18.3 % 52.06 8.9 % 34.46 13.2 % 0.53
Q4 2011 188.33 24.6 % 62.29 22.4 % 40.28 21.7 % 0.62
Q1 2012 198.94 24.9 % 61.70 21.9 % 40.60 24.8 % 0.63
Q2 2012 218.32 15.9 % 70.50 15.1 % 49.31 25.3 % 0.76
Q3 2012 203.04 17.7 % 61.28 17.7 % 42.38 23.0 % 0.66
Q4 2012 221.71 17.7 % 72.88 17.0 % 48.87 21.3 % 0.76
Q1 2013 208.77 4.9 % 67.06 8.7 % 46.46 14.4 % 0.72
Q2 2013 222.81 2.1 % 72.45 2.8 % 51.22 3.9 % 0.79
Q3 2013 198.54 (2.2 %) 60.26 (1.7 %) 42.40 0.0 % 0.66
Q4 2013 218.59 (1.4 %) 73.37 0.7 % 57.57 17.8 % 0.89
Q1 2014 215.93 3.4 % 71.32 6.3 % 48.01 3.3 % 0.74
Q2 2014 226.72 1.8 % 76.35 5.4 % 52.40 2.3 % 0.81
Q3 2014 224.71 13.2 % 71.72 19.0 % 56.72 33.8 % 0.88

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 - - -
Q3 2006 - - -
Q4 2006 - - -
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 - - -
Q1 2008 - - -
Q2 2008 - - -
Q3 2008 - - -
Q4 2008 - - -
Q1 2009 - - -
Q2 2009 - - -
Q3 2009 - - -
Q4 2009 32.71 % 27.26 % 22.15 %
Q1 2010 33.11 % 27.66 % 22.40 %
Q2 2010 33.04 % 27.45 % 22.03 %
Q3 2010 33.06 % 27.12 % 21.63 %
Q4 2010 33.26 % 27.12 % 21.43 %
Q1 2011 33.02 % 27.11 % 21.34 %
Q2 2011 32.66 % 26.79 % 21.01 %
Q3 2011 32.00 % 26.51 % 20.77 %
Q4 2011 31.93 % 26.56 % 20.70 %
Q1 2012 31.72 % 26.37 % 20.68 %
Q2 2012 31.69 % 26.60 % 21.16 %
Q3 2012 31.63 % 26.74 % 21.34 %
Q4 2012 31.63 % 26.91 % 21.52 %
Q1 2013 31.90 % 27.49 % 21.95 %
Q2 2013 31.96 % 27.80 % 22.06 %
Q3 2013 32.01 % 27.66 % 22.18 %
Q4 2013 32.18 % 27.95 % 22.56 %
Q1 2014 32.41 % 28.02 % 22.55 %
Q2 2014 32.72 % 28.34 % 22.58 %
Q3 2014 33.05 % 28.31 % 22.06 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2005 - - - -
Q2 2005 - - - -
Q3 2005 - - - -
Q4 2005 - - - -
Q1 2006 - - - -
Q2 2006 - - - -
Q3 2006 - - - -
Q4 2006 - - - -
Q1 2007 - - - -
Q2 2007 - - - -
Q3 2007 - - - -
Q4 2007 - - - -
Q1 2008 - - - -
Q2 2008 - - - -
Q3 2008 - - - -
Q4 2008 - - - -
Q1 2009 64.68 - - 4.42
Q2 2009 64.68 - - 4.59
Q3 2009 64.68 - - 5.06
Q4 2009 64.68 1.77 1.77 4.90
Q1 2010 64.68 1.84 1.84 5.33
Q2 2010 64.68 1.86 1.86 5.52
Q3 2010 64.68 1.87 1.87 5.37
Q4 2010 64.68 1.92 1.92 5.88
Q1 2011 64.68 1.99 1.99 6.38
Q2 2011 64.68 2.09 2.09 6.34
Q3 2011 64.68 2.16 2.16 6.17
Q4 2011 64.68 2.27 2.27 6.80
Q1 2012 64.68 2.39 2.39 7.42
Q2 2012 64.68 2.55 2.55 7.46
Q3 2012 64.68 2.67 2.67 7.31
Q4 2012 64.68 2.80 2.80 8.06
Q1 2013 64.68 2.89 2.89 8.78
Q2 2013 64.68 2.92 2.92 8.73
Q3 2013 64.68 2.92 2.92 8.50
Q4 2013 64.68 3.06 2.96 9.29
Q1 2014 64.68 3.08 2.98 10.03
Q2 2014 64.68 3.10 3.00 9.92
Q3 2014 64.68 3.32 3.02 9.73

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 - - -
Q3 2006 - - -
Q4 2006 - - -
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 - - -
Q1 2008 - - -
Q2 2008 - - -
Q3 2008 - - -
Q4 2008 - - -
Q1 2009 - - -
Q2 2009 - - -
Q3 2009 - - -
Q4 2009 - - -
Q1 2010 13.89 13.89 4.79
Q2 2010 16.32 16.32 5.50
Q3 2010 17.54 17.54 6.10
Q4 2010 17.15 17.15 5.61
Q1 2011 16.78 16.78 5.23
Q2 2011 17.34 17.34 5.73
Q3 2011 16.13 16.13 5.63
Q4 2011 17.48 17.48 5.83
Q1 2012 17.64 17.64 5.68
Q2 2012 16.12 16.12 5.50
Q3 2012 17.55 17.55 6.41
Q4 2012 17.38 17.38 6.04
Q1 2013 18.40 18.40 6.06
Q2 2013 20.78 20.78 6.95
Q3 2013 20.95 20.95 7.20
Q4 2013 18.53 19.13 6.09
Q1 2014 22.85 23.59 7.02
Q2 2014 23.25 24.00 7.26
Q3 2014 22.07 24.25 7.53

Business Segments (Million)

Compared With The
Period Restaurants Meat Factory Bakeries and others Shaboura factory
Q1 2009 94.27 2.74 21.45 4.04
Q2 2009 102.85 3.28 22.06 3.92
Q3 2009 107.65 3.02 19.09 3.39
Q4 2009 99.25 3.71 22.54 4.33
Q1 2010 104.81 4.03 22.98 4.37
Q2 2010 115.81 4.45 23.12 3.38
Q3 2010 120.95 4.30 18.30 2.27
Q4 2010 119.57 5.56 23.02 3.02
Q1 2011 124.61 6.28 23.98 4.43
Q2 2011 152.46 5.94 26.29 3.73
Q3 2011 144.55 5.36 20.74 1.88
Q4 2011 151.15 6.80 27.33 3.06
Q1 2012 161.28 7.26 27.15 3.26
Q2 2012 177.78 6.61 29.96 3.97
Q3 2012 170.50 5.86 33.91 -
Q4 2012 187.78 7.21 26.73 -
Q1 2013 176.07 6.47 26.22 -
Q2 2013 189.39 6.62 26.81 -
Q3 2013 173.20 6.79 18.54 -
Q4 2013 185.46 8.70 24.42 -
Q1 2014 182.75 7.74 25.44 -
Q2 2014 191.16 7.68 27.88 -
Q3 2014 196.58 6.76 21.37 -

Current
Market Cap (M Riyal) 2,008.31
Enterprise Value (EV) (M) 2,003.70
Shares Outstanding ((M)) 64.68
EPS ( Riyal) (TTM) 0.33
Book Value (BV) ( Riyal) 15.99
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 50
P/E (TTM) More than 50
Price/book 1.94
Return on Average Assets (%) (TTM) 1.1
Return on Average Equity (%) (TTM) 2.1

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