Herfy incurs SAR 8.3 mln loss in H1 2023, posts SAR 4.5 mln profit in Q2

Herfy incurs SAR 8.3 mln loss in H1 2023, posts SAR 4.5 mln profit in Q2

06/08/2023 Argaam Exclusive

View other reports

Herfy Food Services Co. swung to a net loss of SAR 8.3 million in H1 2023 against a net profit of SAR 48 million in H1 2022, due to lower sales and increased cost of goods sold.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 629.08 563.35 (10.4 %)
Gross Income 176.95 126.10 (28.7 %)
Operating Income 62.29 3.02 (95.1 %)
Net Income 48.00 (8.28) (117.3 %)
Average Shares 64.68 64.68 -
EPS (Riyals) 0.74 (0.13) (117.3 %)

The company also reported higher selling and marketing expenses and Zakat charges, despite better other income, as well as lower general and administrative expenses (G&A), and finance costs.



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 298.08 288.22 (3.3 %)
Gross Income 80.01 71.82 (10.2 %)
Operating Income 27.71 11.02 (60.2 %)
Net Income 21.28 4.54 (78.7 %)
Average Shares 64.68 64.68 -
EPS (Riyals) 0.33 0.07 (78.7 %)

The second-quarter net profit plunged 79% to SAR 4.5 million from SAR 21.2 million in the prior-year period on a drop in sales and higher cost of goods sold. Herfy reported an increase in G&A, as well as selling and marketing expenses along with a decline in other income.

 

The Kingdom’s largest fast-food chain turned profitable in Q2 from a net loss of SAR 12.8 million in Q1 2023, backed by better sales along with a decline in the cost of goods sold, as well as selling and marketing expenses.

 

Shareholders’ equity, no minority interest, declined to SAR 1.01 billion by the end of the six-month period, compared to SAR 1.09 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
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
Q3 2022 315.57 (10.4 %) 79.06 (32.0 %) 19.86 (66.9 %) 0.31
Q4 2022 299.19 (10.5 %) 56.01 (59.6 %) (59.28) (249.7 %) (0.92)
Q1 2023 275.13 (16.9 %) 54.28 (44.0 %) (12.82) (148.0 %) (0.20)
Q2 2023 288.22 (3.3 %) 71.82 (10.2 %) 4.54 (78.7 %) 0.07

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
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 %
Q3 2022 30.84 % 24.37 % 8.40 %
Q4 2022 25.09 % 16.21 % 0.69 %
Q1 2023 22.67 % 13.35 % (2.61 %)
Q2 2023 22.17 % 12.53 % (4.05 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
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
Q3 2022 64.68 1.66 1.66 17.11
Q4 2022 64.68 0.13 0.13 16.34
Q1 2023 64.68 (0.48) (0.48) 16.14
Q2 2023 64.68 (0.74) (0.74) 15.71

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
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
Q3 2022 23.36 23.36 2.27
Q4 2022 More than 100 More than 100 2.11
Q1 2023 NEG NEG 2.03
Q2 2023 NEG NEG 2.37

Business Segments (Million)

Compared With The
Period Restaurants Meat Factory Bakeries Shaboura factory
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 -
Q3 2022 251.21 19.14 45.22 -
Q4 2022 232.01 20.60 46.58 -
Q1 2023 210.91 19.93 44.29 -
Q2 2023 222.43 21.03 44.76 -

Analysts Estimates (Million)

Item Q2 2023 (e) Q2 2023 (a) Change‬
Average 9.47 4.54 (52.1 %)

Estimates vs Actual (Million)

Item Q2 2023 (e) Q2 2023 (a) Change
HSBC 8.00 4.54 (43.3) %
Goldman Sachs 8.41 4.54 (46.1) %
Hermes 12.00 4.54 (62.2) %

Current
Market Cap (M Riyal) 1,814.27
Enterprise Value (EV) (M) 1,809.66
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

28.05
0.15 0.54 %

Herfy Food Services Co. (HERFY FOODS)


Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.