Wafrah deepens net losses by 61% in 9M 2017

01/11/2017 Argaam Exclusive

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Wafrah for Industry & Development Co. (WAFRAH)

 

Wafrah for Industry and Development Co., a producer of food products, widened net losses by 61.3 percent year-on-year (YoY) to SAR 13.7 million in the first nine months of 2017, due to lower volumes and selling prices and weak demand due to fierce competition.



Financials (M)

Item 9m 2016 9m 2017 Change‬
Revenues 63.60 49.32 (22.5 %)
Gross Income 14.23 4.98 (65.0 %)
Operating Income (7.69) (13.31) (73.0 %)
Net Income (8.50) (13.71) (61.3 %)
Average Shares 19.70 19.70 -
EPS (Riyals) (0.43) (0.70) (61.3 %)

In Q3 2017, the company cut net losses by 11.5 percent YoY to SAR 8.3 million, thanks to a decline in marketing costs, along with lower general and administrative expenses.

 

The third-quarter net losses, however, increased from SAR 496,347 in the previous quarter, due to lower sales on seasonal factors and a decrease in average selling price. 



Current Quarter Comparison (M)

Compared With The
Item Q3 2016 Q3 2017 Change‬
Revenues 13.31 12.37 (7.0 %)
Gross Income (1.45) (1.74) (20.2 %)
Operating Income (9.16) (8.01) 12.5 %
Net Income (9.34) (8.26) 11.5 %
Average Shares 19.70 19.70 -
EPS (Riyals) (0.47) (0.42) 11.5 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2008 17.03 3.4 % 5.90 (20.2 %) 2.86 (34.8 %) 0.15
Q2 2008 19.89 7.2 % 6.98 (18.0 %) 4.30 28.6 % 0.22
Q3 2008 26.07 44.8 % 10.12 53.4 % 7.42 541.2 % 0.38
Q4 2008 12.59 5.6 % 3.50 13.9 % (0.45) 66.8 % (0.02)
Q1 2009 17.98 5.5 % 6.63 12.5 % 2.76 (3.3 %) 0.14
Q2 2009 20.72 4.2 % 7.06 1.2 % 1.84 (57.2 %) 0.09
Q3 2009 18.77 (28.0 %) 7.08 (30.0 %) 1.60 (78.4 %) 0.08
Q4 2009 13.80 9.6 % 4.14 18.6 % (0.46) (2.5 %) (0.02)
Q1 2010 19.33 7.5 % 8.13 22.5 % 3.05 10.4 % 0.15
Q2 2010 21.13 2.0 % 7.69 8.9 % 12.09 556.3 % 0.61
Q3 2010 20.18 7.5 % 7.25 2.4 % 2.25 40.5 % 0.11
Q4 2010 12.85 (6.9 %) 4.64 12.0 % 0.05 110.1 % 0.00
Q1 2011 21.36 10.5 % 8.74 7.5 % 4.48 46.6 % 0.23
Q2 2011 24.05 13.8 % 8.29 7.8 % 2.44 (79.8 %) 0.12
Q3 2011 21.28 5.4 % 7.53 3.8 % 2.01 (10.4 %) 0.10
Q4 2011 15.20 18.3 % 4.14 (10.8 %) 0.90 1850.0 % 0.05
Q1 2012 17.63 (17.5 %) 5.23 (40.1 %) 0.50 (88.9 %) 0.03
Q2 2012 25.02 4.0 % 9.21 11.1 % 3.52 44.3 % 0.18
Q3 2012 20.95 (1.6 %) 6.91 (8.2 %) 1.60 (20.8 %) 0.08
Q4 2012 16.48 8.4 % 5.29 27.8 % 0.23 (74.5 %) 0.01
Q1 2013 21.36 21.2 % 7.04 34.6 % 1.27 156.4 % 0.06
Q2 2013 25.56 2.2 % 8.48 (7.8 %) 2.63 (25.2 %) 0.13
Q3 2013 20.34 (2.9 %) 6.64 (4.0 %) 1.00 (37.4 %) 0.05
Q4 2013 18.89 14.6 % 5.99 13.3 % 2.21 866.8 % 0.11
Q1 2014 22.09 3.4 % 8.15 15.8 % 1.06 (16.2 %) 0.05
Q2 2014 26.71 4.5 % 9.61 13.3 % 2.15 (18.3 %) 0.11
Q3 2014 20.51 0.8 % 4.88 (26.4 %) 0.53 (47.4 %) 0.03
Q4 2014 17.52 (7.3 %) 3.22 (46.3 %) (3.29) (248.6 %) (0.17)
Q1 2015 15.06 (31.8 %) 3.94 (51.6 %) (3.74) (451.9 %) (0.19)
Q2 2015 28.82 7.9 % 7.96 (17.2 %) 0.51 (76.4 %) 0.03
Q3 2015 14.79 (27.9 %) 2.56 (47.6 %) (5.49) (1145.7 %) (0.28)
Q4 2015 29.37 67.6 % 10.39 223.1 % 3.09 193.9 % 0.16
Q1 2016 28.07 86.4 % 7.85 99.2 % 0.14 103.8 % 0.01
Q2 2016 22.23 (22.9 %) 7.82 (1.7 %) 0.70 37.0 % 0.04
Q3 2016 13.31 (10.0 %) (1.45) (156.6 %) (9.34) (70.0 %) (0.47)
Q4 2016 17.95 (38.9 %) 1.53 (85.2 %) (11.68) (478.3 %) (0.59)
Q1 2017 15.67 (44.2 %) 1.23 (84.4 %) (4.95) (3562.2 %) (0.25)
Q2 2017 21.29 (4.2 %) 5.49 (29.8 %) (0.50) (171.3 %) (0.03)
Q3 2017 12.37 (7.0 %) (1.74) (20.2 %) (8.26) 11.5 % (0.42)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 36.75 % 26.27 % 9.18 %
Q2 2008 33.72 % 22.67 % 10.43 %
Q3 2008 34.79 % 26.11 % 17.67 %
Q4 2008 35.05 % 24.06 % 18.70 %
Q1 2009 35.58 % 24.19 % 18.34 %
Q2 2009 35.30 % 23.10 % 14.97 %
Q3 2009 34.65 % 19.33 % 8.22 %
Q4 2009 34.97 % 19.53 % 8.07 %
Q1 2010 36.38 % 19.58 % 8.31 %
Q2 2010 37.04 % 19.89 % 8.98 %
Q3 2010 36.56 % 20.76 % 9.65 %
Q4 2010 37.70 % 21.88 % 10.37 %
Q1 2011 37.50 % 21.86 % 11.98 %
Q2 2011 36.87 % 22.28 % 11.63 %
Q3 2011 36.71 % 22.07 % 11.19 %
Q4 2011 35.04 % 20.52 % 12.00 %
Q1 2012 32.23 % 18.12 % 7.48 %
Q2 2012 32.99 % 18.86 % 8.75 %
Q3 2012 32.35 % 18.17 % 8.26 %
Q4 2012 33.27 % 19.40 % 7.29 %
Q1 2013 33.94 % 19.32 % 7.89 %
Q2 2013 32.87 % 17.81 % 6.79 %
Q3 2013 32.78 % 16.81 % 6.13 %
Q4 2013 32.68 % 16.52 % 7.91 %
Q1 2014 33.68 % 16.08 % 7.61 %
Q2 2014 34.53 % 14.82 % 6.96 %
Q3 2014 32.48 % 11.65 % 6.41 %
Q4 2014 29.79 % 9.00 % (3.54 %)
Q1 2015 27.14 % 5.17 % (9.88 %)
Q2 2015 24.42 % 8.95 % (11.64 %)
Q3 2015 23.20 % 2.28 % (20.41 %)
Q4 2015 28.23 % 8.87 % (6.40 %)
Q1 2016 28.46 % 12.00 % (1.73 %)
Q2 2016 30.31 % 9.85 % (1.65 %)
Q3 2016 26.48 % 9.34 % (5.82 %)
Q4 2016 19.33 % 0.67 % (20.71 %)
Q1 2017 13.21 % (6.38 %) (31.79 %)
Q2 2017 9.98 % (8.83 %) (33.98 %)
Q3 2017 9.68 % (7.39 %) (32.85 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 19.70 0.31 0.31 8.18
Q2 2008 19.70 0.35 0.35 8.40
Q3 2008 19.70 0.67 0.67 8.76
Q4 2008 19.70 0.72 0.72 8.64
Q1 2009 19.70 0.71 0.71 8.78
Q2 2009 19.70 0.59 0.59 8.91
Q3 2009 19.70 0.29 0.29 9.00
Q4 2009 19.70 0.29 0.29 8.97
Q1 2010 19.70 0.31 0.31 9.13
Q2 2010 19.70 0.83 0.33 9.74
Q3 2010 19.70 0.86 0.36 9.86
Q4 2010 19.70 0.89 0.39 9.86
Q1 2011 19.70 0.96 0.46 10.10
Q2 2011 19.70 0.47 0.46 10.24
Q3 2011 19.70 0.46 0.45 10.33
Q4 2011 19.70 0.50 0.50 10.38
Q1 2012 19.70 0.30 0.30 10.46
Q2 2012 19.70 0.35 0.35 10.61
Q3 2012 19.70 0.33 0.33 10.71
Q4 2012 19.70 0.30 0.30 10.72
Q1 2013 19.70 0.34 0.34 10.81
Q2 2013 19.70 0.29 0.29 10.98
Q3 2013 19.70 0.26 0.26 11.05
Q4 2013 19.70 0.36 0.35 11.19
Q1 2014 19.70 0.35 0.34 11.29
Q2 2014 19.70 0.33 0.31 11.43
Q3 2014 19.70 0.30 0.29 10.85
Q4 2014 19.70 0.02 (0.16) 10.31
Q1 2015 19.70 (0.22) (0.40) 10.11
Q2 2015 19.70 (0.30) (0.48) 10.15
Q3 2015 19.70 (0.61) (0.79) 9.86
Q4 2015 19.70 (0.29) (0.29) 10.22
Q1 2016 19.70 (0.09) (0.09) 10.03
Q2 2016 19.70 (0.08) (0.08) 10.07
Q3 2016 19.70 (0.27) (0.27) 9.80
Q4 2016 19.70 (1.02) (0.86) 9.21
Q1 2017 19.70 (1.28) (1.12) 8.95
Q2 2017 19.70 (1.34) (1.18) 8.92
Q3 2017 19.70 (1.29) (1.12) 8.50

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 More than 50 More than 50 3.83
Q2 2008 More than 50 More than 50 3.30
Q3 2008 23.88 23.88 1.83
Q4 2008 18.54 18.54 1.54
Q1 2009 21.51 21.51 1.75
Q2 2009 44.45 44.45 2.93
Q3 2009 More than 50 More than 50 2.58
Q4 2009 More than 50 More than 50 2.65
Q1 2010 More than 50 More than 50 2.76
Q2 2010 23.81 More than 50 2.02
Q3 2010 22.49 More than 50 1.96
Q4 2010 21.91 More than 50 1.97
Q1 2011 19.26 40.14 1.82
Q2 2011 More than 50 More than 50 2.77
Q3 2011 More than 50 More than 50 2.62
Q4 2011 More than 50 More than 50 3.24
Q1 2012 More than 50 More than 50 3.48
Q2 2012 More than 50 More than 50 2.41
Q3 2012 More than 50 More than 50 2.80
Q4 2012 More than 50 More than 50 2.77
Q1 2013 More than 50 More than 50 4.04
Q2 2013 More than 50 More than 50 3.52
Q3 2013 More than 50 More than 50 3.28
Q4 2013 More than 50 More than 50 3.41
Q1 2014 More than 50 More than 50 3.69
Q2 2014 More than 50 More than 50 6.19
Q3 2014 More than 50 More than 50 6.37
Q4 2014 More than 50 NEG 3.89
Q1 2015 NEG NEG 4.13
Q2 2015 NEG NEG 4.41
Q3 2015 NEG NEG 3.16
Q4 2015 NEG NEG 2.99
Q1 2016 NEG NEG 2.91
Q2 2016 NEG NEG 2.96
Q3 2016 NEG NEG 2.28
Q4 2016 NEG NEG 3.27
Q1 2017 NEG NEG 3.16
Q2 2017 NEG NEG 2.83
Q3 2017 NEG NEG 3.24

Business Segments (Million)

Compared With The
Period Pasta sector Vegetable sector Breakfast beans sector Food Factory Dates Factory Adjustments
Q3 2007 7.48 7.23 0.58 2.72 - -
Q4 2007 2.48 6.08 0.73 2.63 - -
Q3 2008 16.11 6.66 0.40 2.91 - -
Q4 2008 3.42 6.10 0.23 2.83 - -
Q1 2009 7.85 6.78 0.56 2.79 - -
Q1 2010 7.71 7.44 0.35 3.84 - -
Q3 2011 11.13 8.18 0.10 1.87 - -
Q4 2011 4.87 7.78 0.16 2.39 - -
Q1 2012 8.72 6.33 0.19 2.40 - -
Q2 2012 15.37 7.12 0.25 2.28 - -
Q3 2012 11.47 6.39 0.32 2.76 - -
Q4 2012 5.43 8.49 0.11 2.46 - -
Q1 2013 9.13 9.50 0.06 2.67 - -
Q2 2013 15.90 7.34 - 2.35 - -
Q3 2013 9.97 7.65 0.17 2.55 - -
Q4 2013 4.66 10.89 0.12 3.23 - -
Q1 2014 7.93 11.81 0.10 2.24 - -
Q2 2014 14.55 9.95 0.09 2.12 - -
Q3 2014 4.69 12.16 0.09 3.57 - -
Q4 2014 6.39 8.25 0.18 2.52 0.19 -
Q1 2015 6.08 7.65 0.22 1.10 - -
Q2 2015 16.17 10.68 0.14 1.68 0.16 -
Q3 2015 4.57 8.07 0.12 1.97 0.06 -
Q4 2015 8.77 18.21 0.09 2.19 0.10 -
Q1 2017 5.58 9.97 0.08 1.42 - (1.38)

Current
Market Cap (M Riyal) 1,132.04
Enterprise Value (EV) (M) 1,079.63
Shares Outstanding ((M)) 23.15
EPS ( Riyal) (TTM) 1.12
Book Value (BV) ( Riyal) 10.50
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 43.57
P/E (TTM) 43.57
Price/book 4.66
Return on Average Assets (%) (TTM) 8.2
Return on Average Equity (%) (TTM) 11.2

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