Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
We update the DCF valuation for our F&B coverage after incorporating new products, revising estimates and rolling over our forecast period by one year. We believe F&B companies’ performance was lower than expected during FY 19, dragged by tight competition, fiscal consolidation, lower purchasing power and high raw material cost. Accordingly, we cut our forecasts on all consumer stocks on weak 2019 volumes and profitability.
OLFI 2Q19 revenues amounted to EGP612 million, up 6% QoQ and down 9% YoY. Sequential improvement was price and volume driven. Volumes grew by 4% QoQ while 1Q19 price hikes (+4%) reflected on 2Q19 revenues. Annual drop came on the back of lower volumes (-13.8% YoY) and high base effect of 2Q18. Revenues recorded EGP1,188 million in 1H19, up 5% YoY (+6% YoY ASP, -2% YoY volumes).
Food & beverage sector is on track to recover to pre-flotation levels. Several companies are currently on an investment mode shifting towards expanding their portfolio with higher margin products to pull up their overall average margins. As a result of the dairy fierce competition and the cheese market saturation, F&B companies are venturing into new segments to expand and diversify their revenue base. As for the poultry industry, margins are on a slow recovery mode following the depletion of th...
OLFI recorded revenues of EGP575.8 million in 1Q19, down 8% QoQ and up 26% YoY. Annual topline growth was supported by a 14% increase in white cheese volumes and a 5% increase in ASP. Despite a 5% implemented price hike in Feb-Mar19, quarterly revenues were dragged by a 7.6% drop in volumes recording 24k tons, down from 26k tons in 4Q18. Milk and Juice revenues recorded EGP32.7 million, up 118% YoY (which currently stands at 5.7% out of total revenues).
This is a joint report from Exotix Capital and its research partner in Egypt, Pharos Holding. This report discontinues Exotix’s independent coverage of Juhayna. Please refer to Pharos’s Egypt equity strategy for their views on Egypt’s consumer sector.
OLFI’s topline for FY18 amounted to EGP2,404 million, up 16.3% YoY. 4Q18 topline recorded EGP626 million, down 3% QoQ and up 4% YoY; beating our expectations for 4Q18 by 5.4%. The drop was driven by seasonal factors causing a 3.7% drop in the white cheese quarterly volumes to 26k tons down from 27k tons.
We update the DCF valuation for our F&B coverage after incorporating the healthcare tax and a higher WACC, and after rolling over our forecast period by one year. We continue to expect growth in volumes for the companies’ core product offering, albeit at normalized rates following the strong rebound in sales volumes witnessed in 2018. Additional growth potential is expected to be driven mainly by the introduction of new products. Dairy products witnessed margin pressures during 3Q18 due to ong...
​We initiate our coverage for Obour Land for Food Industries - with a “Buy†rating driven from an upside potential of 38.1%; driven from our estimated Fair Value of EGP 12.43 /share. The company’s P/E Multiple for 2017 would stand at 7.44x.The Egyptian Food & Beverage industry witnessed a lot of changes during 2016. Two main factors shaped the industry during the year; (1) The FX shortage / volatility and (2) The high rates of inflation. In the past, the F&B producers have always been ab...
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