Cost control offsets the weak revenue
After posting a flat revenue in the last 3 quarters (-0.25% yoy), the company reported a 4.2%, yoy, decrease in Q2 2017 revenues to SAR3.760bn. Thus, H1 2017 sales declined 4.2%, yoy, to SAR7.144bn. Dairy and Juice H1 sales tumbled by 3.9% to SAR5.415bn due to unfavourable market conditions and the devaluation of the Egyptian pound. Bakery sales plummeted by 0.8% to SAR904m, while poultry sales nudged up 8.3% to SAR744m.Almarai is an integrated consumer food group in the Middle East, based in Saudi Arabia, and active in the neighbouring Gulf Cooperation Council (GCC) countries. Co.'s dairy, fruit juices and related food business is operated under the Almarai, Beyti and Teeba brand names. Raw milk production and related processing and food manufacturing activities are undertaken in Saudi Arabia, United Arab Emirates, Egypt and Jordan. Final consumer products are distributed from facilities in these countries to local distribution centers by Co.'s long haul distribution fleet. Bakery products are manufactured under the brand names L'usine and 7 Days. Poultry products are manufactured under the Alyoum brand.
AlphaMena is the MENA stocks leader in independent equity research, covering 142. MENA securities spanning across 19 sectors and 8 countries relaying on a team of 11 analysts. The breadth of coverage allows AlphaMena to formulate a coherent view on markets, sectors and to highlight the best investments in Mena zone using a robust homogeneous and transparent methodology, enabling pure and pertinent comparisons based on financial and extra-financial criteria.
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