reports
- Nauman Khan
Almarai: Low gross margins erode profits
Almarai reported a weak set of Q4 22 results with a net profit of SAR355.8mn, up 24.2% yoy (-23.1% qoq), but was lower than the SNB Capital and consensus estimates of SAR481mn and SAR419mn, respectively. Revenues increased by 13.7% yoy (+1.5% qoq) to SAR4.84bn and were in-line with our estimates. However, the deviation in earnings was due to lower than expected gross margins, which declined to 27.6% in Q4 22 vs 28.0% and 31.2% in Q4 21 and Q3 22, respectively. * Revenues increased by 13.7% y...
- MarketLine Department
Oman Refreshment Co SAOG - Strategy, SWOT and Corporate Finance Report
Summary Oman Refreshment Co SAOG - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Oman Refreshment Co SAOG (ORC) manufactures and distributes a range of beverages and snacks. The company bottles and distributes juices, water and soft drinks. It owns franchise right...
- Nauman Khan
Almarai: Demand normalisation and poultry to drive growth
We remain Neutral on Almarai with a PT of SAR55.9. We believe the outlook for Almarai is positive driven by the various initiatives recently announced to improve food security and the company’s leading position in Saudi. We expect the company to deliver a 3-year earnings CAGR (2021-2024f) of 15.6% on the back of 1) relative improvement in margins and 2) the announced poultry expansion. The stock trades at 2023f P/E and EV/EBITDA of 27.4x and 13.3x, higher than the peers average of 16.5x and 1...
- Nauman Khan
Almarai Earnings call summary – Q3 22
Business performance * Revenues increased by 21.0% yoy (+3.4% qoq) to SAR4.77bn in Q3 22, driven by growth across all segments and regions. * Poultry and bakery segments were the main drivers of growth with 43% yoy (+5% qoq) and 32%% (+9% qoq), respectively. * Long life dairy sales increased by 26% yoy (31% qoq), while 16% yoy growth (-12% qoq) was witnessed in fresh dairy. Food, fruit juice and others grew by 12% yoy, 9% yoy and 13% yoy respectively. * The management attribu...
- Nauman Khan
Almarai: Q3 22 profits in-line with expectations
Almarai reported an in-line set of Q3 22 earnings, with net income increasing by 13.2% yoy (-11.0% qoq) to SAR463mn. This compares with the SNB Capital and consensus estimates of SAR465mn and SAR466mn, respectively. The yoy growth in earnings was supported by 1) strong growth in revenue and 2) positive impact of the review of existing zakat provisions. However, it was partially offset by 1) higher COGS due to the impact of global inflation, 2) one-off charge related to an oversees farming inv...
- Nauman Khan
Almarai: Q2 22 earnings call summary
Below are the key highlights of Almarai Q2 22 earnings call. I have also attached our Q2 22 results analysis and link to the presentation [almarai.com] BUSINESS PERFORMANCE * Revenues increased by 15.1% yoy (+2.4% qoq) to SAR4.61bn in Q2 22, driven by a 42% yoy growth in bakery products, 8% yoy growth in long life dairy, 10% yoy growth in fresh dairy, 7% yoy growth in fruit juice, 5% yoy growth in foods, 30% yoy growth in poultry and 19% growth in other sales. * Revenue growth was acros...
- Nauman Khan
Almarai: Stronger than expected margins raise profits
Almarai reported a better than expected set of Q2 22 results, with net income increasing by 8.0% yoy (+23.8% qoq) to SAR520mn. This is higher than the SNB Capital and consensus estimates of SAR451mn and SAR482mn respectively. Although revenues were broadly in-line with our estimates, we believe the variance is mainly due to strong gross margins. This was slightly offset by an increase in impairment of financial assets and higher losses from the sale of dairy herd. * Revenues increased 15.1% ...
ALMARAI COMPANY SJSC sees a downgrade to Slightly Negative on account ...
The independent financial analyst theScreener just lowered the general evaluation of ALMARAI COMPANY SJSC (SA), active in the Food Products industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date February 4, 2022, the closing price was SAR ...
- Nauman Khan
Almarai: Weaker than expected results on low margins
Almarai reported a weaker than expected set of Q3 21 earnings, with net income declining 34.2% yoy to SAR409mn. This compares to the SNB Capital and consensus estimates of SAR510mn and SAR519mn, respectively. Revenues were up 2.0% yoy to SAR3.94bn, broadly in-line with our estimates. The earning weakness is primarily driven by lower gross margins of 32.4% (vs our estimates of 34.0%) due to subsidy reduction and higher feedstock prices. * Revenues grew 2.0% yoy to SAR3.9bn in Q3 21 and came i...
- Nauman Khan
Almarai: Weak earnings on lower margins
Almarai reported a weaker than expected set of Q2 21 earnings, with net income declining by 25.1% yoy to SAR482mn. This compares to the NCBC and consensus estimates of SAR579mn and SAR619mn, respectively. Revenues decreased by 1.9% yoy to SAR4.0bn and were in-line with our estimates of SAR4.1bn. we believe the earnings deviation was due to lower gross margins. Revenues declined 1.9% yoy to SAR4.0bn in Q2 21 and came broadly in-line with our estimates of SAR4.1bn. Growth in long-life dairy (+1...
- Nauman Khan
Almarai: Dairy sales growth offsets other segments’ decline
Almarai reported an in-line set of Q1 21 earnings, with net income increasing 0.8% yoy (14.9% qoq) to SAR386m. This compares to the NCBC and consensus estimates of SAR378mn and SAR352mn. Revenues increased 1.5% yoy to SAR3.6bn, mainly driven by growth in the dairy segment. Gross margins contracted by 100bps yoy to 33.9% mainly due to the removal of subsidies and higher cost of imported alfalfa. REVENUES INCREASED 1.5% YOY TO SAR3.6BN IN Q1 21, IN-LINE WITH OUR ESTIMATES. The growth was led b...
- Nauman Khan
Almarai: Lowest gross margin on record
Almarai reported a weaker than expected set of Q4 20 results. Although net income increased +7.7% yoy (-46.0% qoq) to SAR336mn, it came lower than the NCBC and consensus estimates of SAR375mn and SAR381mn, respectively. The variance is due to lower gross margins along with higher financing and zakat expenses. Almarai gross margin stood at 32.3%, the lowest on record and compared to our estimates of 34.8%. Revenues increased +3.1% yoy to SAR3.82bn in Q4 20, in-line with our estimates. The reve...
- Nauman Khan
Almarai: Strong Q3 results due to higher than expected margins
Almarai reported a better than expected set of Q3 20 results, with net income increasing +6.9% yoy to SAR622mn. This is higher than our estimates of SAR473mn. The deviation was driven by higher than expected gross margins, which came in at 39.2% vs our estimates of 36.5%. Revenues increased +8.1% yoy to SAR3.86bn and were higher than our estimates of SAR3.6bn. Revenues increased +8.1% yoy (-5.4% qoq) to SAR3.86bn and were marginally higher than our estimates of SAR3.63bn. We expected a muted ...
- Nauman Khan
Almarai: Defensive segments remain key drivers
We remain Neutral on Almarai, with a revised PT of SAR51.8. We expect the top-line to be mainly supported by the sales of long-life milk and fresh chicken amidst COVID-19 outbreak; however gross margins are expected to be under pressure going forward, due to higher feedstock costs. We believe the current stock price, having rallied 37% over the past 3 months, already prices in all the positives. Discretionary sales to be impacted by the macro environment: The Saudi government recently announ...
- Imen BEN AHMED
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.
- Imen BEN AHMED
Margins improvement despite unfavourable costs context
The company reported a 0.28% yoy increase in Q1 2017 revenues to SAR3.383bn. The modest growth is attributed to the decrease in its largest segment’s sales, “Dairy and Juiceâ€, by 3.2% to SAR2.494bn due to lower selling prices and the devaluation of the Egyptian pound. However, the drop was mitigated by the growth of Bakery and Poultry sales by 3.7% to SAR469m and by 11.1% to SAR356m, respectively. By geographic zone, Saudi Arabia sales increased by 4.7% while sales in the KSA grew by 2.1%,...
- Imen BEN AHMED
Weak top-line growth
Almarai reported an almost flat Q4 2016 with 0.7% sales growth to SAR3.61bn, triggered by juice and dairy sales decline for the first time by 2.7% YoY to SAR2.7bn. The net income increased by only 1.0% to SAR489m. Consequently, the full year revenues increased 6.6% to SAR14.699bn as the Juice and Dairy sales were up by 5.0% to SAR11.274bn. Bakery sales increased 16.3% YoY to SAR1.891, supported by new capacities in Hail and new product launches.
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
- Imen BEN AHMED
A continued move forward
The Gulf’s largest dairy company reported a 2.5% increase in Q3 sales to SAR655m. The 9M sales were up 8.6% to SAR11.088bn, as the Dairy and Juice sales increased 7.5% to SAR8.577bn. Furthermore, Bakery revenues rose 20.3% to SAR1.385bn, while Poultry sales’ growth hit 5.8% to SAR992m. Almarai made an 11% increase in its 9M profit to SAR1.592bn. The Q3 2016 coincided with an insurance settlement gain of SAR25m. Thus, the net margin was up 30 bps to 14.3%.
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