Burgerizzr profit rises to SAR 6.7M in H1 2024; Q2 at SAR 1.4M

Burgerizzr profit rises to SAR 6.7M in H1 2024; Q2 at SAR 1.4M

25/07/2024 Argaam Exclusive

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Shatirah House Restaurant Co. (Burgerizzr) net profit more than doubled to SAR 6.7 million in the first half of 2024 from SAR 3.3 million in the year-earlier period.



Financials (M)

Item 6m 2023 6m 2024 Change‬
Revenues 131.98 146.08 10.7 %
Gross Income 36.62 47.01 28.4 %
Operating Income 5.54 7.85 41.5 %
Net Income 3.26 6.69 104.9 %
Average Shares 35.00 35.00 -
EPS (Riyals) 0.09 0.19 104.9 %

The higher earnings were due to revenue rising nearly 10.7% year-on-year (YoY), driven primarily by higher average sales per branch and an increased customer base.

 

Additionally, gross profit rose 28.4% YoY, largely due to improved average sales per branch.

 

Gross profit margin increased to 32.2% in the current period from 27.7% last year, thanks to reduced food costs and higher expenses related to rent, utilities, and maintenance.

 

Financing costs fell by SAR 128,000, and losses from disposals of property and equipment declined by SAR 803,000. On the other hand, other revenues rose by SAR 282,000.

 

However, the company reported a 23% YoY increase in sales expenses to SAR 4.5 million amid higher delivery fees associated with increased contributions from electronic channels, including delivery services.

 

Administrative expenses also rose by SAR 3.6 million as salaries and other expenses increased in line with business growth.



Current Half Annual Comparison (M)

Compared With The
Item H1 2023 H1 2024 Change‬
Revenues 70.57 70.26 (0.4 %)
Gross Income 22.26 21.14 (5.1 %)
Operating Income 6.61 2.01 (69.6 %)
Net Income 4.70 1.42 (69.7 %)
Average Shares 35.00 35.00 -
EPS (Riyals) 0.13 0.04 (69.7 %)

The decrease in profit compared to last year is mainly due to a 0.44% decline in sales revenue, driven by reduced demand in the burger fast-food market in May. Measures taken improved performance in June.

 

Overall, profit decreased by 5% YoY due to lower sales and a reduced gross profit margin from 31.5% to 30.1%, alongside higher costs for food, rent, utilities, and maintenance.

 

Increased sales expenses by SAR 1.4 million and higher administrative expenses by SAR 2.1 million further contributed to the profit decline.

 

Offsetting factors included reduced financing costs by SAR 66,000, lower losses from asset disposals by SAR 1.1 million, and increased other revenues by SAR 148,000.

 

The decrease in profits during the current quarter compared to the year-earlier period was primarily due to a 7.3% decline in sales revenue, driven by reduced demand in the burger fast-food market in May.

 

Financing costs increased by SAR 78,000, losses from disposal of property and equipment rose by SAR 5,000, and other revenues decreased by SAR 23,000.

 

There was an 18.3% decrease in overall profit, largely attributed to lower sales. The gross profit margin decreased from 34.1% in Q1 2024 to 30.1% in the current period.

 

The second-quarter net earnings dropped 70% to SAR 1.4 million, compared with SAR 4.70 million a year earlier on lower sales revenue and gross profit.

 

Compared with the previous quarter, the earnings slid 70.3% from SAR 5.27 million in Q1 2024.

 

Shareholders’ equity, no minority interest, stood at SAR 70.38 million at the end of current period, compared to SAR 60.27 million a year earlier.

 

Historical Quarterly Data 

Period

Revenues

(SAR mln)

Net Profit

(SAR mln)

Earnings per Share (SAR/Share)

H1 2020

82.82 

5.62

0.16

H2 2020

113.01

13.38

0.38

H1  2021

106.63

6.50

0.19

H2 2021

128.15

8.87

0.25

H1  2022

120.84

2.98

0.09

H2  2022

129.06

(0.28)

(0.01)

H1 2023

131.98

3.26

0.09

H2 2023

149.07

9.03

0.26

H1  2024

146.08

6.70

0.19



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
H1 2015 - - - - - -
H2 2015 - - - - - -
H1 2016 - - - - - -
H2 2016 - - - - - -
H1 2017 - - - - - -
H2 2017 - - - - - -
H1 2018 - - - - - -
H2 2018 - - - - - -
H1 2019 - - - - - -
H2 2019 - - - - - -
H1 2020 - - - - - -
H2 2020 - - - - - -
H1 2021 - - - - - -
H2 2021 - - - - - -
H1 2022 - - - - - -
H2 2022 61.63 - 15.00 - (0.16) -
H1 2023 70.57 - 22.26 - 6.61 -
H2 2023 76.73 24.5 % 25.37 69.1 % 5.81 3643.3 %
H1 2024 70.26 (0.4 %) 21.14 (5.1 %) 2.01 (69.6 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
H1 2015 - - - - - -
H2 2015 - - - - - -
H1 2016 - - - - - -
H2 2016 - - - - - -
H1 2017 - - - - - -
H2 2017 - - - - - -
H1 2018 - - - - - -
H2 2018 - - - - - -
H1 2019 - - - - - -
H2 2019 - - - - - -
H1 2020 - - - - - -
H2 2020 - - - - - -
H1 2021 - - - - - -
H2 2021 - - - - - -
H1 2022 - - - - - -
H2 2022 (1.19) - (0.03) - (1.19) (0.03)
H1 2023 4.70 - 0.13 - 4.70 0.13
H2 2023 4.97 517.4 % 0.14 - 4.97 0.14
H1 2024 1.42 (69.7 %) 0.04 - 1.42 0.04

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
H1 2015 - - -
H2 2015 - - -
H1 2016 - - -
H2 2016 - - -
H1 2017 - - -
H2 2017 - - -
H1 2018 - - -
H2 2018 - - -
H1 2019 - - -
H2 2019 - - -
H1 2020 - - -
H2 2020 - - -
H1 2021 - - -
H2 2021 - - -
H1 2022 - - -
H2 2022 - - -
H1 2023 26.99 % 12.08 % 1.14 %
H2 2023 30.15 % 14.34 % 4.37 %
H1 2024 32.23 % 14.32 % 5.32 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
H1 2015 - - - -
H2 2015 - - - -
H1 2016 - - - -
H2 2016 - - - -
H1 2017 - - - -
H2 2017 - - - -
H1 2018 - - - -
H2 2018 - - - -
H1 2019 - - - -
H2 2019 - - - -
H1 2020 35.00 - - 1.26
H2 2020 35.00 - - 1.36
H1 2021 - - - -
H2 2021 - - - -
H1 2022 - - - -
H2 2022 35.00 - - 1.63
H1 2023 35.00 0.09 0.09 1.72
H2 2023 35.00 0.35 0.35 1.97
H1 2024 35.00 0.45 0.45 2.01

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
H1 2015 - - -
H2 2015 - - -
H1 2016 - - -
H2 2016 - - -
H1 2017 - - -
H2 2017 - - -
H1 2018 - - -
H2 2018 - - -
H1 2019 - - -
H2 2019 - - -
H1 2020 - - -
H2 2020 - - -
H1 2021 - - -
H2 2021 - - -
H1 2022 - - -
H2 2022 - - 4.98
H1 2023 More than 100 More than 100 5.23
H2 2023 33.62 33.62 6.00
H1 2024 29.05 29.05 6.48

Current
Market Cap (M Riyal) 834.40
Enterprise Value (EV) (M) 835.31
Shares Outstanding ((M)) 35.00
Book Value (BV) ( Riyal) 1.97
Par Value ( Riyal) 1.00
Adjusted P/E (Last12) More than 100
Price/book 12.12

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