Herfy’s H1 2022 net profit down 7% to SAR 48.6 mln; Q2 drops 24% to SAR 20.2 mln

Herfy’s H1 2022 net profit down 7% to SAR 48.6 mln; Q2 drops 24% to SAR 20.2 mln

03/08/2022 Argaam Exclusive

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Herfy Food Services Co. reported a net profit after Zakat and tax of SAR 48.6 million for the first half of 2022, a 7% decline from SAR 52.1 million in the corresponding period of 2021.



Financials (M)

Item 6m 2021 6m 2022 Change‬
Revenues 632.49 629.08 (0.5 %)
Gross Income 163.03 176.95 8.5 %
Operating Income 62.73 62.29 (0.7 %)
Net Income 52.14 48.00 (8.0 %)
Average Shares 64.68 64.68 -
EPS (Riyals) 0.81 0.74 (8.0 %)

The first-half profit was hit by lower sales amid fierce competition. This is in addition to the higher percentage of the cost of sales on increased prices of operating inputs, as well as selling and marketing expenses.

 

In Q2 2022, net profit after Zakat and tax dropped 24% to SAR 20.20 million, from SAR 26.67 million in the prior-year period.

 

Herfy cited a decrease in sales for the quarter amid fierce competition, in addition to the higher percentage of the cost of sales on increased prices of operating inputs. This came despite a rise in net other income, along with a decline in selling and marketing expenses, financing cost, as well as general and administrative expenses and Zakat expenses.



Current Quarter Comparison (M)

Compared With The
Item Q2 2021 Q2 2022 Change‬
Revenues 321.37 298.08 (7.2 %)
Gross Income 80.92 80.01 (1.1 %)
Operating Income 30.42 27.71 (8.9 %)
Net Income 26.67 21.28 (20.2 %)
Average Shares 64.68 64.68 -
EPS (Riyals) 0.41 0.33 (20.2 %)

Compared to the previous quarter, the company’s net profit fell 28.9% from SAR 28.39 million, due to lower sales.

 

Total shareholders’ equity, after minority interest, rose by 15.8% to SAR 1.096 billion as of June 30, 2022, from SAR 946.86 million a year earlier. 



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2013 208.77 4.9 % 67.06 8.7 % 46.46 14.4 % 0.72
Q2 2013 222.81 2.1 % 72.45 2.8 % 51.22 3.9 % 0.79
Q3 2013 198.54 (2.2 %) 60.26 (1.7 %) 42.40 0.0 % 0.66
Q4 2013 218.59 (1.4 %) 73.37 0.7 % 57.57 17.8 % 0.89
Q1 2014 215.93 3.4 % 71.32 6.3 % 48.01 3.3 % 0.74
Q2 2014 226.72 1.8 % 76.35 5.4 % 52.40 2.3 % 0.81
Q3 2014 224.71 13.2 % 71.72 19.0 % 56.72 33.8 % 0.88
Q4 2014 242.78 11.1 % 72.01 (1.9 %) 48.68 (15.4 %) 0.75
Q1 2015 265.20 22.8 % 86.87 21.8 % 54.54 13.6 % 0.84
Q2 2015 259.36 14.4 % 75.02 (1.7 %) 46.27 (11.7 %) 0.72
Q3 2015 279.47 24.4 % 85.35 19.0 % 56.65 (0.1 %) 0.88
Q4 2015 272.97 12.4 % 73.55 2.1 % 45.22 (7.1 %) 0.70
Q1 2016 283.55 6.9 % 85.25 (1.9 %) 53.35 (2.2 %) 0.82
Q2 2016 277.73 7.1 % 76.77 2.3 % 49.48 7.0 % 0.77
Q3 2016 315.17 12.8 % 95.22 11.6 % 59.29 4.7 % 0.92
Q4 2016 280.23 2.7 % 90.37 22.9 % 54.95 21.5 % 0.85
Q1 2017 275.01 (3.0 %) 86.86 1.9 % 52.72 (1.2 %) 0.82
Q2 2017 272.10 (2.0 %) 75.42 (1.8 %) 43.40 (12.3 %) 0.67
Q3 2017 311.72 (1.1 %) 90.06 (5.4 %) 56.04 (5.5 %) 0.87
Q4 2017 298.96 6.7 % 89.40 (1.1 %) 47.89 (12.9 %) 0.74
Q1 2018 286.30 4.1 % 78.98 (9.1 %) 47.75 (9.4 %) 0.74
Q2 2018 286.61 5.3 % 78.73 4.4 % 45.89 5.7 % 0.71
Q3 2018 329.16 5.6 % 96.69 7.4 % 58.11 3.7 % 0.90
Q4 2018 325.20 8.8 % 90.67 1.4 % 52.43 9.5 % 0.81
Q1 2019 313.40 9.5 % 93.54 18.4 % 48.06 0.7 % 0.74
Q2 2019 309.31 7.9 % 88.10 11.9 % 40.86 (11.0 %) 0.63
Q3 2019 339.08 3.0 % 110.95 14.7 % 57.54 (1.0 %) 0.89
Q4 2019 326.52 0.4 % 100.06 10.4 % 49.64 (5.3 %) 0.77
Q1 2020 296.93 (5.3 %) 79.13 (15.4 %) 25.13 (47.7 %) 0.39
Q2 2020 170.10 (45.0 %) 15.70 (82.2 %) (34.24) (183.8 %) (0.53)
Q3 2020 311.12 (8.2 %) 92.45 (16.7 %) 41.38 (28.1 %) 0.64
Q4 2020 297.94 (8.8 %) 76.48 (23.6 %) 20.57 (58.6 %) 0.32
Q1 2021 311.12 4.8 % 82.11 3.8 % 25.47 1.3 % 0.39
Q2 2021 321.37 88.9 % 80.92 415.3 % 26.67 177.9 % 0.41
Q3 2021 352.22 13.2 % 116.30 25.8 % 60.06 45.1 % 0.93
Q4 2021 334.39 12.2 % 138.50 81.1 % 39.59 92.5 % 0.61
Q1 2022 331.00 6.4 % 96.94 18.1 % 26.72 4.9 % 0.41
Q2 2022 298.08 (7.2 %) 80.01 (1.1 %) 21.28 (20.2 %) 0.33

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2013 31.90 % 27.49 % 21.95 %
Q2 2013 31.96 % 27.80 % 22.06 %
Q3 2013 32.01 % 27.66 % 22.18 %
Q4 2013 32.18 % 27.95 % 22.56 %
Q1 2014 32.41 % 28.02 % 22.55 %
Q2 2014 32.72 % 28.34 % 22.58 %
Q3 2014 33.05 % 28.31 % 22.06 %
Q4 2014 32.02 % 27.42 % 21.05 %
Q1 2015 31.99 % 27.21 % 20.65 %
Q2 2015 30.81 % 26.54 % 19.35 %
Q3 2015 30.50 % 26.96 % 19.58 %
Q4 2015 29.79 % 26.88 % 18.82 %
Q1 2016 29.14 % 26.58 % 18.39 %
Q2 2016 28.82 % 26.53 % 18.38 %
Q3 2016 28.78 % 25.92 % 18.04 %
Q4 2016 30.05 % 25.79 % 18.77 %
Q1 2017 30.42 % 25.60 % 18.85 %
Q2 2017 30.45 % 24.69 % 18.41 %
Q3 2017 30.09 % 24.32 % 18.18 %
Q4 2017 29.52 % 23.63 % 17.28 %
Q1 2018 28.56 % 23.12 % 16.69 %
Q2 2018 28.49 % 23.18 % 16.69 %
Q3 2018 28.63 % 23.20 % 16.62 %
Q4 2018 28.12 % 23.44 % 16.64 %
Q1 2019 28.67 % 23.34 % 16.30 %
Q2 2019 28.89 % 25.98 % 15.44 %
Q3 2019 29.78 % 28.24 % 15.28 %
Q4 2019 30.48 % 29.97 % 14.60 %
Q1 2020 29.74 % 30.77 % 13.23 %
Q2 2020 27.00 % 27.43 % 8.77 %
Q3 2020 26.01 % 25.71 % 7.26 %
Q4 2020 24.51 % 24.27 % 5.86 %
Q1 2021 24.46 % 23.58 % 5.54 %
Q2 2021 26.74 % 24.51 % 9.45 %
Q3 2021 27.74 % 25.35 % 10.84 %
Q4 2021 31.68 % 26.51 % 11.51 %
Q1 2022 32.31 % 26.42 % 11.43 %
Q2 2022 32.82 % 26.55 % 11.22 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2013 64.68 2.89 2.89 8.78
Q2 2013 64.68 2.92 2.92 8.73
Q3 2013 64.68 2.92 2.92 8.50
Q4 2013 64.68 3.06 2.96 9.29
Q1 2014 64.68 3.08 2.98 10.03
Q2 2014 64.68 3.10 3.00 9.92
Q3 2014 64.68 3.32 3.02 9.73
Q4 2014 64.68 3.18 2.96 10.48
Q1 2015 64.68 3.28 3.06 11.32
Q2 2015 64.68 3.19 2.97 10.87
Q3 2015 64.68 3.19 3.17 10.67
Q4 2015 64.68 3.13 3.13 11.37
Q1 2016 64.68 3.12 3.12 12.04
Q2 2016 64.68 3.16 3.16 11.71
Q3 2016 64.68 3.21 3.21 11.55
Q4 2016 64.68 3.36 3.36 12.41
Q1 2017 64.68 3.35 3.35 13.23
Q2 2017 64.68 3.25 3.25 12.80
Q3 2017 64.68 3.20 3.20 12.66
Q4 2017 64.68 3.09 3.09 13.40
Q1 2018 64.68 3.02 3.02 14.14
Q2 2018 64.68 3.05 3.05 13.72
Q3 2018 64.68 3.09 3.09 13.62
Q4 2018 64.68 3.16 3.16 14.42
Q1 2019 64.68 3.16 3.16 15.27
Q2 2019 64.68 3.08 3.05 14.78
Q3 2019 64.68 3.08 3.04 14.67
Q4 2019 64.68 3.03 2.91 15.43
Q1 2020 64.68 2.68 2.60 15.82
Q2 2020 64.68 1.52 1.54 14.15
Q3 2020 64.68 1.27 1.24 14.79
Q4 2020 64.68 0.82 0.97 14.83
Q1 2021 64.68 0.82 0.93 15.23
Q2 2021 64.68 1.76 1.81 14.64
Q3 2021 64.68 2.05 2.15 15.57
Q4 2021 64.68 2.35 2.35 16.13
Q1 2022 64.68 2.37 2.37 16.55
Q2 2022 64.68 2.28 2.28 16.88

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2013 18.40 18.40 6.06
Q2 2013 20.78 20.78 6.95
Q3 2013 20.95 20.95 7.20
Q4 2013 18.53 19.13 6.09
Q1 2014 22.85 23.59 7.02
Q2 2014 23.25 24.00 7.26
Q3 2014 22.07 24.25 7.53
Q4 2014 21.83 23.45 6.63
Q1 2015 24.15 25.88 7.00
Q2 2015 26.22 28.16 7.69
Q3 2015 21.07 21.20 6.29
Q4 2015 22.93 22.93 6.32
Q1 2016 14.85 14.85 3.84
Q2 2016 17.52 17.52 4.74
Q3 2016 14.23 14.23 3.95
Q4 2016 16.69 16.69 4.51
Q1 2017 17.66 17.66 4.47
Q2 2017 17.34 17.34 4.41
Q3 2017 15.61 15.61 3.95
Q4 2017 14.92 14.92 3.44
Q1 2018 15.75 15.75 3.36
Q2 2018 15.34 15.34 3.41
Q3 2018 13.51 13.51 3.06
Q4 2018 14.45 14.45 3.16
Q1 2019 17.05 17.05 3.53
Q2 2019 18.32 18.53 3.82
Q3 2019 16.98 17.17 3.56
Q4 2019 17.71 18.46 3.48
Q1 2020 15.82 16.28 2.68
Q2 2020 29.61 29.23 3.17
Q3 2020 42.48 43.40 3.64
Q4 2020 72.96 61.14 4.02
Q1 2021 79.42 69.94 4.29
Q2 2021 36.17 35.18 4.36
Q3 2021 30.79 29.41 4.06
Q4 2021 26.59 26.59 3.87
Q1 2022 23.84 23.84 3.41
Q2 2022 18.64 18.64 2.52

Business Segments (Million)

Compared With The
Period Restaurants Meat Factory Bakeries Shaboura factory
Q1 2013 176.07 6.47 26.22 -
Q2 2013 189.39 6.62 26.81 -
Q3 2013 173.20 6.79 18.54 -
Q4 2013 185.46 8.70 24.42 -
Q1 2014 182.75 7.74 25.44 -
Q2 2014 191.16 7.68 27.88 -
Q3 2014 196.58 6.76 21.37 -
Q4 2014 204.62 7.63 30.54 -
Q1 2015 226.66 6.83 31.71 -
Q2 2015 221.24 7.83 30.29 -
Q3 2015 246.39 6.06 27.01 -
Q4 2015 227.95 7.80 37.23 -
Q1 2016 241.18 6.67 35.70 -
Q2 2016 239.31 6.29 32.13 -
Q3 2016 279.93 6.12 29.12 -
Q4 2016 234.31 7.48 38.43 -
Q1 2017 232.91 7.83 34.28 -
Q2 2017 235.78 6.35 29.97 -
Q3 2017 273.07 6.90 31.75 -
Q4 2017 252.38 7.63 38.95 -
Q1 2018 243.28 7.40 35.62 -
Q2 2018 249.13 7.22 30.27 -
Q3 2018 284.92 8.35 35.90 -
Q4 2018 272.24 12.55 40.41 -
Q1 2019 263.74 11.95 37.71 -
Q2 2019 269.62 9.23 30.45 -
Q3 2019 288.72 10.87 39.50 -
Q4 2019 270.01 11.76 44.79 -
Q1 2020 233.95 17.55 45.43 -
Q2 2020 105.72 27.31 37.07 -
Q3 2020 252.85 16.09 42.18 -
Q4 2020 238.88 14.41 44.64 -
Q1 2021 252.14 14.26 44.71 -
Q2 2021 270.19 11.26 39.92 -
Q3 2021 293.05 15.54 43.63 -
Q4 2021 272.38 17.39 44.62 -
Q1 2022 263.41 20.34 47.25 -
Q2 2022 237.34 17.83 42.91 -

Analysts Estimates (Million)

Item Q2 2022 (e) Q2 2022 (a) Change‬
Average 24.05 21.28 (11.5 %)

Estimates vs Actual (Million)

Item Q2 2022 (e) Q2 2022 (a) Change
Sico 22.10 21.28 (3.7) %
Al Rajhi Capital 26.00 21.28 (18.2) %

Current
Market Cap (M Riyal) 1,804.57
Enterprise Value (EV) (M) 1,799.96
Shares Outstanding ((M)) 64.68
EPS ( Riyal) (TTM) 0.33
Book Value (BV) ( Riyal) 15.99
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) More than 100
Price/book 1.75
Return on Average Assets (%) (TTM) 1.1
Return on Average Equity (%) (TTM) 2.1

Share Price

27.90
0.00 0.00 %

Herfy Food Services Co. (HERFY FOODS)


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