reports
- Marina William
Juhayna: 2Q23 | Margins squeezed despite solid revenue growth and weak...
Diversified product portfolio, solid market position, and increase in prices support top-line; Exports witness a solid boost JUFO’s revenue growth continued for the second quarter of 2023, recording EGP3,730 mn (+35.1% YoY, +9% QoQ). The rise came supported by price increases rather than volumes, which witnessed a decline, where the dairy and juice segments experienced the majority of this decline, while the yogurt segment experienced a small decline, backed by Ramadan’s positive seasonality....
- Marina William
Egypt Food & Beverages: 1Q23 – Higher Prices, Lagging Costs & Margin E...
The companies under our coverage in the Food and Beverages sector all witnessed an outstanding quarter when it comes to enhanced profitability and margins, all backed by nearly the same trends with varying extents. These trends are: * Rising top-line levels backed by prices rather than volumes. * Lagging cost rises due to stocking-up of low-priced inventory. * Rise in GPMS backed by the price increases and lagging costs. * Higher EBITDA margins backed by enhanced gross profit...
- Marina William
Juhayna: 1Q23 | Margins boosted by low-priced inventory and exports
Inflationary pressure takes a toll on volumes; Price hikes saves the day JUFO achieved another astonishing quarter, recording revenues of EGP3,423 mn (+42.4% YoY, +6.9% QoQ). The growth was driven mainly by prices increase as nearly a 60% rise was implemented throughout 2022, reflecting positively on 1Q23 results. The dairy segment revenues recorded EGP1,771 mn (+36.3% YoY, -7.1% QoQ) and its contribution to revenues reached 51.7% for the quarter (-2.3pps YoY, -7.8pps QoQ). JUFO’s market shar...
- Marina William
Juhayna: Revenues on the rise by prices; Bottomline resilient despite ...
DAIRY VOLUMES SOLID AGAINST PRICE INCREASES WHILE YOGURT AND JUICE FALTER SLIGHTLY JUFO achieved another solid quarter, recording revenues of EGP3,203 mn compared to EGP2,282 mn in 4Q21 and EGP2,996 mn in 3Q22 (+40.4% YoY, +6.9% QoQ). FY22 revenues recorded EGP11,364 mn compared to a previous EGP8,806 mn (+29% YoY). The rise came backed by the gradual prices increase implemented throughout the year (60% YoY). However, the rise in volumes witnessed a slowdown during 4Q22 affected by the price ...
- Marina William
Juhayna: Management Meeting Key Takeaways
2022 UPDATES & 2023 TARGETS * Challenges faced during 2022, including heightened and scarce foreign currency, high inflation and rising costs, led the company to raise prices gradually by more than 50% throughout the year across all segments * January is considered a good month for the company when it comes to FX sourcing and raw materials availability compared to 4Q22 * January volumes witnessed a positive incline, mainly from wholesalers stocking up; awaiting an upcoming wave of ...
- Marina William
Juhayna: 3Q22 – Revenues continue to rise while costs take a toll on m...
YOGURT SALES DROP SEQUENTIALLY WHILE THE REST CONTINUE TO RISE; SOLID MARKET SHARES MAINTAINED JUFO continued to break records at the top-line level, achieving revenue for 3Q22 of EGP2,996 mn compared to EGP2,435 mn in 3Q21 and EGP2,761 mn in 2Q22 (+23% YoY, +8.5% QoQ). 9M22 revenues came in at EGP8,161 mn compared to EGP6,254 mn recorded in 9M21, a climb of 25.1% YoY. The YoY rise came backed by healthy volume increases in the dairy and juice sectors, along with price increases applied acro...
- Marina William
Juhayna: 2Q22 topline driven by prices & volumes mix; bottom line pres...
PRICES AND VOLUMES MIX DRIVES TOP-LINE JUFO continued showing positive results amidst challenging market dynamics. Top-line for 2Q22 came in at EGP2,761 mn, in line with our expectations of EGP2,649 mn and compared to EGP2,227 mn recorded in 2Q21 and EGP2,403 mn in 1Q22. Growth was driven by healthy volume increases in the dairy and juice segments, as well as price increases applied across most segments. 1H22 revenues recorded EGP5,165 mn compared to EGP4,089 mn, a rise of 26.3% supported by...
- Marina William
Juhayna: Solid topline; cost pressures margins; deleveraging supports ...
GREEN PREVAILS ACROSS ALL SEGMENTS; JUICE LAGS SEQUENTIALLY JUFO started the year with a solid topline despite 1Q being a quarter of relatively weak seasonality, recording EGP2,403 mn in revenues, a strong YoY hike of 29.1%, and 5.3% QoQ. Such a rise was mainly volume-driven, as consumer demand recovers post-pandemic. All revenue streams came with a positive YoY change with the concentrates & agriculture segment recording the highest growth of 39.1% YoY and an even higher QoQ growth of 42.2%,...
- Marina William
Egypt F&B Sector 2022 | Weathering Through The Storm; Shielded by Dema...
Click through for our F&B Sector update for 2022, in which we present: * Sector Outlook, Hopes, Fears, and Top Picks * Sector Valuation Table and Inter-company Comparison * Individual F&B Players: 2022 Fundamental Review 1. Edita (EFID)| The Flexibility Champion 2. Juhayna (JUFO)| Solidifying Position 3. Domty (DOMT)| Shifting Away from Norm 4. Obourland (OLFI)| Steady State Wins 5. Cairo Poultry (POUL)| Lacks Catalyst
- Marina William
Juhayna: Results hindered by a weak 4Q21; Heightened expenses take a t...
WEAK SEASONALITY PREVAILS; DAIRY MARCHING AHEAD JUFO recorded a topline of EGP2,282 mn in 4Q21, a drop of 6.3% QoQ but a solid rise YoY of 24.8%. The fourth quarter has been historically one of a relatively weak ones, especially when compared to the third one, recording a sequential drop from topline all the way down to bottom-line. The dairy segment was the only one holding its grounds sequentially, while the others witnessed a drop, some more severe than the others. Dairy segment sales reco...
- Marina William
JUFO: Management webinar key takeaways
2021-2022 Financial Targets * Management thinks of 2020 as a story of muted growth across all segments, mainly saved by cost optimization strategy and the central bank’s interest rates cuts. * 2021 was the complete opposite, as management expresses it, it was a year of accelerated market recovery with pressure on margins given the commodity prices rally and the global supply chain disruptions. * The rise in basic commodities prices (milk powder, raw milk and packaging materials) le...
- Marina William
Juhayna: 9M 21 – Strong results backed by new products and cost optimi...
RECOVERING CONSUMER SPENDING & NEWLY INTRODUCED PRODUCTS DRIVE SALES UPWARDS JUFO recorded a strong topline for 9M21, achieving EGP6,524 mn, compared to EGP5,629 mn in 9M20, a rise of 15.9% YoY. Management attributed this growth to a recovery in consumer spending after the destabilising effects of the pandemic, rising volumes noticeably. Another major contributor to this growth is the introduction of two new ranges of products which are the “Nuts and Grains” non-dairy/vegan milk with 5 differ...
A double requalification allows JUHAYNA FOOD to improve to Slightly Po...
JUHAYNA FOOD (EG), a company active in the Food Products industry, has received a double requalification by the independent financial analyst theScreener. Its fundamental valuation is now 4 out of 4 stars while its market behaviour can be considered as defensive. theScreener believes that the gain of a star(s) and an improvement in the market risk perception allows upgrading the general evaluation to Slightly Positive. As of the analysis date December 3, 2021, the closing price was EGP 6.99 and ...
- Marina William
- Martina Bernaba
- Merna Arafat
- Omar Attia
- Zeyad Ahmed
Egypt: Commodity and material prices update – 2Q21
In this report we assess the average material prices for 2Q21 and depict the impact of pricing trends on the financial performance of the relevant listed equities in Egypt. Prices of raw materials in the food and beverages sector continued to normalize in 2Q21, except for prices of SMP and WMP. Accordingly, we expect a gradual recovery of margins to appear in the 3Q21 results of JUFO, EFID, DOMT and OLFIas price increases kick in and with seasonality of revenues. Most companies have an invent...
ABUK ABU QIR FERTILIZERS & CHEMICAL INDUSTRIES
CCAP CITADEL CAPITAL SAE
EKHO EGYPT KUWAIT HOLDING CO
AUTO GB AUTO
EFID EDITA FOOD INDUSTRIES
JUFO JUHAYNA FOOD INDUSTRIES CO.
OLFI OBOUR LAND FOR FOOD INDUSTRIES
DOMT ARABIAN FOOD INDUSTRIES CO DOMTY
ORWE ORIENTAL WEAVERS GROUP
MFPC MISR FERTILIZERS PRODUCTION CO SAE
SKPC SIDI KERIR PETROCHEMICALS CO
- Alaa Tolba
- Mirna Mohsen
Egypt food stocks | Weathering the storm selectively; Pick Obour Land
Not out of the woods, with a challenging year ahead. We hold our views unchanged, cutting our Egypt food TPs by c10%, on average, factoring: i) an average 35bps cut in 2021e GPM, reflecting a higher-than-expected spur in commodity prices, and ii) slower-than-anticipated recovery in cheese volumes, amid the higher magnitude of price hikes. Beyond 2021e, improved affordability should allow for better cost passing ability (+3-5% price hikes over 2022-25e), offsetting any weakness in EGP, as the pro...
- Marina William
- Martina Bernaba
- Merna Arafat
- Omar Attia
- Zeyad Ahmed
Egypt Commodity and Material Prices: Sector outlook and trends – Q1 21...
We present the 1Q21 material prices that are relevant to the petrochemical, consumer and industrial & materials sectors. In our 12-page report, we depict the impact of such changes on the financial performance of listed equities in Egypt. We also present the quarterly breakdown of each sector. Most companies have inventory of raw material that covers somewhere around 2-3 months. The increase in raw material costs is slowing down in 2Q21. Accordingly, we expect the pressure on margins to appe...
ESRS EL EZZ STEEL REBARS
ABUK ABU QIR FERTILIZERS & CHEMICAL INDUSTRIES
EGCH EGYPTIAN CHEMICAL INDUSTRIES
EGAL EGYPT ALUMINIUM CO.
CCAP CITADEL CAPITAL SAE
EFID EDITA FOOD INDUSTRIES
JUFO JUHAYNA FOOD INDUSTRIES CO.
OLFI OBOUR LAND FOR FOOD INDUSTRIES
DOMT ARABIAN FOOD INDUSTRIES CO DOMTY
MFPC MISR FERTILIZERS PRODUCTION CO SAE
SKPC SIDI KERIR PETROCHEMICALS CO
- Martina Bernaba
Egypt F&B Sector: Near flotation lows despite better fundamentals
JUHAYNA (JUFO): FACING MANAGEMENT, COMPETITIVE AND RAW MATERIAL COST PRESSURES – ALL PRICED-IN * JUFO is currently trading at EGP5.29/share with 2021 EV/EBITDA multiple of 4.3x; which reflects a potential upside of 108% considering our fair value of EGP11.00/share. * JUFO is currently trading at FY21 P/E of 7.5x which is much lower than its 5-year average multiple of 28.4x and 3-year average multiple of 27.5x. * The current price levels of JUFO are the lowest since late 2016, follo...
- Alaa Tolba
- Mirna Mohsen
JUFO EY | Aligning valuation with diversification; Remain OW
A play on consumption normalisation. We cut our TP by 20% to EGP10.0/share, as the prolonged consumption recovery, amid COVID-19 implications, warrants a c26% trim to our 2020-24e EBIT forecasts. Nonetheless, we look for a recovery in revenue trends in 2021e, as economic activity approaches normalcy, with juice beating other segments, from a low base, and view the acceleration of the pace of conversion to packaged from loose milk as a medium-term story. This fuels 2020-22e EPS CAGR of 23%, along...
- Martina Bernaba
Juhayna: Management Webinar Key Takeaways
2020 MAIN UPDATES * Management projected flat revenues YoY for 2020, which translates into a revenue figure around EGP6.7 billion in 2020, versus EGP5.7 billion recorded in 9M20. * Dairy segment had a slight growth YoY in 2020 compared to 2019. Juice segment is expected to experience a decline YoY. * The latest market shares as of November 2020 are 58% for milk, 30% in plain yoghurt, 25% in juice, 53% in drinkable yoghurt and 55% in flavored milk. * Due to competition and purc...
- Martina Bernaba
Juhayna: 3Q20 - Strong results boosted by easing lockdown measures, Ma...
JUICE SEGMENT RECOVERS GRADUALLY, ANNUAL TOPLINE REMAINS SLIGHTLY MUTED JUFO recorded a topline of EGP2,039 million, -0.1% YoY but +7.4% QoQ, in line with our estimate for 3Q20 of EGP2,095 million. Annual topline remains slightly muted as the increase in revenues of dairy and yoghurt was offset by a contraction in juice, concentrates and agriculture. On the other hand, the sequential growth in the dairy segment (+15.8% QoQ) and recovery of juice segment (+45.5% QoQ) on the back of easing lock...
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