Almarai’s net profit drops 16% to SAR 867.9 mln in H1 2021

11/07/2021 Argaam Exclusive

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Share Price

54.90
(0.30) (0.54 %)

Almarai Co. (ALMARAI)

Saudi dairy giant, Almarai, reported a net profit after Zakat and tax of SAR 867.9 million for the first half of 2021, a fall of 16% from SAR 1.0269 billion in the same period last year.  



Financials (M)

Item 6m 2020 6m 2021 Change‬
Revenues 7,674.28 7,650.58 (0.3 %)
Gross Income 2,788.38 2,590.84 (7.1 %)
Operating Income 1,303.65 1,155.12 (11.4 %)
Net Income 1,026.94 867.93 (15.5 %)
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 1.03 0.87 (15.5 %)


Current Quarter Comparison (M)

Compared With The
Item Q2 2020 Q2 2021 Change‬
Revenues 4,081.84 4,005.57 (1.9 %)
Gross Income 1,535.19 1,355.74 (11.7 %)
Operating Income 790.40 621.55 (21.4 %)
Net Income 643.93 481.98 (25.2 %)
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 0.64 0.48 (25.2 %)

The company cited that it faced a challenging year, due to the base year effect of COVID-19 and VAT rate change-related purchases last year. Accordingly, revenues were at the same level as last year, but with an adverse mix. The revenue drop was prominent for long date products of foods, poultry and bakery, offset by other sales and dairy products. The same adverse issues were observed on the channel mix, where the drop in more profitable retail channel was offset by sales in hotel, restaurant and non-branded sales including alfalfa sales. 

 

Gross profit decreased by 7.1% year-on-year (YoY), while other expenses increased by SAR 19.5 million YoY. This came despite a decrease in selling and distribution, as well as general and administrative expenses. 

In Q2 2021, the company reported a net profit after Zakat and tax of SAR 482 million, a decline of 25% from SAR 643.9 million in the same period last year.  

 

On a sequential basis, Q2 2021 net profit increased 24.9% due to seasonality of sales.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2012 2,040.35 17.0 % 707.30 11.5 % 242.12 2.9 % 0.24
Q2 2012 2,524.14 25.4 % 921.72 18.7 % 379.52 8.7 % 0.38
Q3 2012 2,672.99 27.0 % 1,012.19 17.5 % 449.97 4.7 % 0.45
Q4 2012 2,645.52 26.6 % 869.87 20.2 % 369.03 194.5 % 0.37
Q1 2013 2,411.03 18.2 % 827.80 17.0 % 255.09 5.4 % 0.26
Q2 2013 2,873.88 13.9 % 1,034.49 12.2 % 398.23 4.9 % 0.40
Q3 2013 2,926.09 9.5 % 1,104.95 9.2 % 475.62 5.7 % 0.48
Q4 2013 3,008.18 13.7 % 995.50 14.4 % 373.27 1.2 % 0.37
Q1 2014 2,718.92 12.8 % 918.95 11.0 % 273.58 7.2 % 0.27
Q2 2014 3,286.52 14.4 % 1,149.16 11.1 % 433.29 8.8 % 0.43
Q3 2014 3,269.37 11.7 % 1,390.72 25.9 % 539.44 13.4 % 0.54
Q4 2014 3,330.76 10.7 % 1,133.79 13.9 % 428.03 14.7 % 0.43
Q1 2015 3,037.31 11.7 % 1,110.34 20.8 % 306.48 12.0 % 0.31
Q2 2015 3,649.52 11.0 % 1,388.04 20.8 % 530.42 22.4 % 0.53
Q3 2015 3,523.58 7.8 % 1,446.52 4.0 % 595.12 10.3 % 0.60
Q4 2015 3,584.20 7.6 % 1,338.37 18.0 % 483.68 13.0 % 0.48
Q1 2016 3,373.79 11.1 % 1,127.55 1.5 % 288.66 (5.8 %) 0.29
Q2 2016 3,925.89 7.6 % 1,520.89 9.6 % 658.38 24.1 % 0.66
Q3 2016 3,530.34 0.2 % 1,485.41 2.7 % 664.26 11.6 % 0.66
Q4 2016 3,508.56 (2.1 %) 1,388.64 3.8 % 536.49 10.9 % 0.54
Q1 2017 3,383.53 0.3 % 1,177.43 4.4 % 328.27 13.7 % 0.33
Q2 2017 3,760.36 (4.2 %) 1,554.93 2.2 % 674.11 2.4 % 0.67
Q3 2017 3,372.92 (4.5 %) 1,516.00 2.1 % 667.01 0.4 % 0.67
Q4 2017 3,418.73 (2.6 %) 1,335.27 (3.8 %) 512.89 (4.4 %) 0.51
Q1 2018 3,232.21 (4.5 %) 1,254.43 6.5 % 344.87 5.1 % 0.34
Q2 2018 3,672.33 (2.3 %) 1,448.45 (6.8 %) 661.39 (1.9 %) 0.66
Q3 2018 3,317.36 (1.6 %) 1,399.20 (7.7 %) 634.96 (4.8 %) 0.63
Q4 2018 3,381.18 (1.1 %) 1,262.94 (5.4 %) 370.77 (27.7 %) 0.37
Q1 2019 3,308.89 2.4 % 1,163.91 (7.2 %) 336.03 (2.6 %) 0.34
Q2 2019 3,767.42 2.6 % 1,466.22 1.2 % 582.53 (11.9 %) 0.58
Q3 2019 3,573.26 7.7 % 1,443.77 3.2 % 581.25 (8.5 %) 0.58
Q4 2019 3,703.94 9.5 % 1,293.51 2.4 % 311.95 (15.9 %) 0.31
Q1 2020 3,592.44 8.6 % 1,253.19 7.7 % 383.01 14.0 % 0.38
Q2 2020 4,081.84 8.3 % 1,535.19 4.7 % 643.93 10.5 % 0.64
Q3 2020 3,863.08 8.1 % 1,514.70 4.9 % 621.52 6.9 % 0.62
Q4 2020 3,819.59 3.1 % 1,232.43 (4.7 %) 335.90 7.7 % 0.34
Q1 2021 3,645.01 1.5 % 1,235.11 (1.4 %) 385.95 0.8 % 0.39
Q2 2021 4,005.57 (1.9 %) 1,355.74 (11.7 %) 481.98 (25.2 %) 0.48

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2012 37.22 % 25.26 % 15.84 %
Q2 2012 36.70 % 26.67 % 15.26 %
Q3 2012 36.08 % 26.90 % 14.55 %
Q4 2012 35.53 % 27.71 % 14.58 %
Q1 2013 35.42 % 28.17 % 14.18 %
Q2 2013 35.31 % 27.64 % 13.89 %
Q3 2013 35.34 % 27.93 % 13.80 %
Q4 2013 35.32 % 27.87 % 13.39 %
Q1 2014 35.17 % 27.75 % 13.01 %
Q2 2014 34.91 % 27.35 % 12.86 %
Q3 2014 36.26 % 27.32 % 13.02 %
Q4 2014 36.43 % 27.38 % 13.12 %
Q1 2015 37.02 % 27.31 % 13.21 %
Q2 2015 37.80 % 27.58 % 14.18 %
Q3 2015 37.51 % 27.73 % 14.32 %
Q4 2015 38.30 % 27.91 % 14.61 %
Q1 2016 37.51 % 27.63 % 14.13 %
Q2 2016 37.71 % 28.38 % 14.20 %
Q3 2016 37.96 % 29.09 % 14.50 %
Q4 2016 38.51 % 30.87 % 15.00 %
Q1 2017 38.84 % 31.68 % 15.27 %
Q2 2017 39.53 % 32.67 % 15.56 %
Q3 2017 40.19 % 34.21 % 15.93 %
Q4 2017 40.07 % 34.18 % 15.66 %
Q1 2018 41.07 % 35.75 % 15.95 %
Q2 2018 40.55 % 36.32 % 15.96 %
Q3 2018 39.86 % 36.36 % 15.79 %
Q4 2018 39.44 % 36.05 % 15.53 %
Q1 2019 38.56 % 35.36 % 15.38 %
Q2 2019 38.42 % 34.75 % 14.70 %
Q3 2019 38.04 % 33.87 % 14.05 %
Q4 2019 37.39 % 33.18 % 12.62 %
Q1 2020 37.28 % 32.63 % 12.70 %
Q2 2020 36.96 % 32.11 % 12.84 %
Q3 2020 36.72 % 31.84 % 12.86 %
Q4 2020 36.05 % 30.84 % 12.79 %
Q1 2021 35.81 % 31.08 % 12.76 %
Q2 2021 34.81 % 30.08 % 11.77 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2012 1,000.00 1.15 1.31 7.18
Q2 2012 1,000.00 1.18 1.34 6.87
Q3 2012 1,000.00 1.20 1.36 7.26
Q4 2012 1,000.00 1.44 1.44 7.55
Q1 2013 1,000.00 1.45 1.45 7.76
Q2 2013 1,000.00 1.47 1.47 7.66
Q3 2013 1,000.00 1.50 1.50 8.07
Q4 2013 1,000.00 1.50 1.50 8.44
Q1 2014 1,000.00 1.52 1.50 8.76
Q2 2014 1,000.00 1.56 1.53 8.53
Q3 2014 1,000.00 1.62 1.60 8.99
Q4 2014 1,000.00 1.67 1.65 9.19
Q1 2015 1,000.00 1.71 1.71 9.37
Q2 2015 1,000.00 1.80 1.88 9.62
Q3 2015 1,000.00 1.86 1.94 9.99
Q4 2015 1,000.00 1.92 2.01 10.36
Q1 2016 1,000.00 1.90 2.00 10.51
Q2 2016 1,000.00 2.03 2.05 10.42
Q3 2016 1,000.00 2.09 2.09 11.08
Q4 2016 1,000.00 2.15 2.15 11.36
Q1 2017 1,000.00 2.19 2.19 11.01
Q2 2017 1,000.00 2.20 2.21 11.66
Q3 2017 1,000.00 2.21 2.23 12.26
Q4 2017 1,000.00 2.18 2.18 12.78
Q1 2018 1,000.00 2.20 2.20 13.11
Q2 2018 1,000.00 2.19 2.19 12.87
Q3 2018 1,000.00 2.15 2.15 13.39
Q4 2018 1,000.00 2.01 2.11 13.88
Q1 2019 1,000.00 2.00 2.10 14.24
Q2 2019 1,000.00 1.92 2.02 14.00
Q3 2019 1,000.00 1.87 1.97 14.58
Q4 2019 1,000.00 1.81 1.81 14.65
Q1 2020 1,000.00 1.86 1.86 14.72
Q2 2020 1,000.00 1.92 1.92 14.60
Q3 2020 1,000.00 1.96 1.96 15.33
Q4 2020 1,000.00 1.98 1.96 15.69
Q1 2021 1,000.00 1.99 1.97 16.07
Q2 2021 1,000.00 1.83 1.80 15.46

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2012 23.02 20.20 3.68
Q2 2012 21.89 19.27 3.75
Q3 2012 23.45 20.68 3.87
Q4 2012 17.67 17.67 3.37
Q1 2013 18.55 18.55 3.48
Q2 2013 19.13 19.13 3.68
Q3 2013 21.99 21.99 4.08
Q4 2013 21.02 21.02 3.74
Q1 2014 25.51 25.87 4.43
Q2 2014 27.08 27.45 4.94
Q3 2014 29.93 30.32 5.39
Q4 2014 27.56 27.91 5.02
Q1 2015 30.66 30.66 5.59
Q2 2015 29.98 28.72 5.62
Q3 2015 27.25 26.13 5.07
Q4 2015 24.57 23.36 4.54
Q1 2016 22.12 21.02 3.99
Q2 2016 21.60 21.39 4.20
Q3 2016 20.28 20.33 3.83
Q4 2016 25.51 25.47 4.82
Q1 2017 25.80 25.76 5.13
Q2 2017 35.02 34.97 6.62
Q3 2017 25.87 25.54 4.65
Q4 2017 24.63 24.63 4.20
Q1 2018 25.19 25.19 4.22
Q2 2018 27.63 27.63 4.69
Q3 2018 23.17 23.17 3.73
Q4 2018 23.86 22.72 3.46
Q1 2019 27.46 26.14 3.86
Q2 2019 27.80 26.42 3.82
Q3 2019 26.60 25.24 3.41
Q4 2019 27.32 27.32 3.38
Q1 2020 25.29 25.29 3.19
Q2 2020 26.98 26.98 3.55
Q3 2020 26.98 26.98 3.45
Q4 2020 27.67 27.96 3.50
Q1 2021 26.17 26.44 3.24
Q2 2021 34.73 35.13 4.10

Business Segments (Million)

Compared With The
Period Dairy & Juice Poultry Project Bakeries Productions Others.. Arable and Horticulture
Q1 2012 1,635.68 95.40 293.54 - 15.73
Q2 2012 2,031.54 119.06 324.96 - 48.58
Q3 2012 2,203.10 127.43 302.85 - 39.61
Q4 2012 2,102.29 162.46 369.30 0.08 11.39
Q1 2013 1,901.16 162.12 340.90 6.85 -
Q2 2013 2,209.27 202.71 369.48 92.41 -
Q3 2013 2,354.11 212.94 324.76 34.29 -
Q4 2013 2,371.27 214.56 409.97 12.37 -
Q1 2014 2,125.60 211.10 373.32 8.91 -
Q2 2014 2,547.67 250.35 399.27 89.24 -
Q3 2014 2,603.15 273.64 365.99 26.59 -
Q4 2014 2,625.49 287.67 394.33 23.27 -
Q1 2015 2,353.44 308.98 355.53 19.36 -
Q2 2015 2,869.02 313.95 396.35 70.21 -
Q3 2015 2,756.98 314.83 399.51 52.27 -
Q4 2015 2,761.46 324.49 474.46 23.79 -
Q1 2016 2,577.33 320.83 452.27 23.36 -
Q2 2016 3,054.66 365.77 458.22 47.25 -
Q3 2016 2,722.80 277.65 467.02 62.87 -
Q4 2016 2,606.53 367.26 503.28 31.48 -
Q1 2017 2,494.13 356.37 468.91 64.13 -
Q2 2017 2,920.95 387.41 434.61 17.39 -
Q3 2017 2,570.11 328.31 436.67 37.83 -
Q4 2017 2,525.29 391.54 466.90 35.00 -
Q1 2018 2,356.95 420.64 405.47 49.15 -
Q2 2018 2,752.49 434.66 377.44 62.50 -
Q3 2018 2,405.25 453.37 411.60 47.14 -
Q4 2018 2,404.97 491.69 446.89 37.63 -
Q1 2019 2,333.97 499.50 421.07 54.35 -
Q2 2019 2,782.58 527.14 394.60 60.88 -
Q3 2019 2,552.86 488.96 454.50 76.94 -
Q4 2019 2,540.58 608.99 479.13 75.24 -
Q1 2020 2,520.12 558.39 432.81 81.12 -
Q2 2020 2,966.24 614.62 424.22 76.77 -
Q3 2020 2,770.35 524.75 419.21 148.77 -
Q4 2020 2,666.97 595.02 435.72 121.87 -
Q1 2021 2,581.48 551.84 391.09 120.61 -
Q2 2021 2,895.63 566.18 400.92 142.84 -

Analysts Estimates (Million)

Item Q2 2021 (e) Q2 2021 (a) Change‬
Average 619.10 481.98 (22.1 %)

Estimates vs Actual (Million)

Item Q2 2021 (e) Q2 2021 (a) Change
SNB Capital 579.00 481.98 (16.8) %
AlJazira Capital 607.40 481.98 (20.6) %
Al Rajhi Capital 621.00 481.98 (22.4) %
Riyad Capital 669.00 481.98 (28.0) %

Current
Market Cap (M Riyal) 54,900.00
Enterprise Value (EV) (M) 64,037.56
Shares Outstanding ((M)) 1,000.00
EPS ( Riyal) (TTM) 2.11
Book Value (BV) ( Riyal) 18.34
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 26.06
P/E (TTM) 26.06
Price/book 2.99
Return on Average Assets (%) (TTM) 6.2
Return on Average Equity (%) (TTM) 11.8

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