Zahrat Al Waha 9M 2024 profit dips 63% to SAR 6.2M; Q3 at SAR 4.1M

Zahrat Al Waha 9M 2024 profit dips 63% to SAR 6.2M; Q3 at SAR 4.1M

28/10/2024 Argaam Exclusive

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Zahrat Al Waha for Trading Co. reported a net profit of SAR 6.2 million in the nine-month period of 2024, a decline of 63% from SAR 16.9 million in a year-earlier period.



Financials (M)

Item 9m 2023 9m 2024 Change‬
Revenues 463.72 428.92 (7.5 %)
Gross Income 44.71 44.01 (1.6 %)
Operating Income 28.78 21.84 (24.1 %)
Net Income 16.93 6.22 (63.2 %)
Average Shares 22.50 22.50 -
EPS (Riyals) 0.75 0.28 (63.2 %)

The annual profit drop was attributed to lower sales as sales of the plastic bottles preform segment tumbled year-on-year (YoY) in 9M 2024, given the customers’ direction towards lightweight, low-priced products, alongside a pullback in raw material prices. Sales of the plastic caps segment also slumped YoY due to the decreased raw material prices for the same period.

 

Additional factors that weighed on the company’s nine-month results included higher selling & marketing expenses, administrative & general expenses, expected credit losses on trade receivables, financing costs and Zakat due to the difference in Zakat assessment for 2019, 2020 and 2023.



Current Quarter Comparison (M)

Compared With The
Item Q3 2023 Q3 2024 Change‬
Revenues 156.45 146.45 (6.4 %)
Gross Income 16.91 15.63 (7.5 %)
Operating Income 11.74 9.26 (21.1 %)
Net Income 7.16 4.06 (43.4 %)
Average Shares 22.50 22.50 -
EPS (Riyals) 0.32 0.18 (43.4 %)

In Q3 2024, net earnings fell 43.4% to SAR 4.1 million, from SAR 7.2 million in Q3 2023.

 

On a quarterly basis, the company turned to profits against a net loss of SAR 1.54 million in Q2 2024, on higher sales volumes of the plastic caps segment.

 

Total shareholders’ equity, no minority interest, stood at SAR 291.81 million by Sept. 30, 2024, compared to SAR 299.23 million in the prior-year period.



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2015 - - - - - -
Q2 2015 - - - - - -
Q3 2015 - - - - - -
Q4 2015 - - - - - -
Q1 2016 - - - - - -
Q2 2016 - - - - - -
Q3 2016 89.69 - 22.80 - 19.74 -
Q4 2016 74.41 - 13.20 - 8.95 -
Q1 2017 84.28 - 18.85 - 15.28 -
Q2 2017 128.76 - 25.89 - 22.90 -
Q3 2017 121.75 35.8 % 22.65 (0.7 %) 17.33 (12.2 %)
Q4 2017 87.52 17.6 % 10.47 (20.7 %) 6.40 (28.5 %)
Q1 2018 97.77 16.0 % 10.70 (43.2 %) 7.42 (51.4 %)
Q2 2018 140.67 9.2 % 16.49 (36.3 %) 12.24 (46.5 %)
Q3 2018 141.57 16.3 % 17.40 (23.2 %) 14.09 (18.7 %)
Q4 2018 108.51 24.0 % 20.45 95.3 % 17.93 180.2 %
Q1 2019 129.89 32.9 % 16.80 57.0 % 13.40 80.6 %
Q2 2019 133.42 (5.2 %) 18.04 9.4 % 13.91 13.6 %
Q3 2019 147.00 3.8 % 23.48 34.9 % 18.82 33.6 %
Q4 2019 109.45 0.9 % 30.15 47.4 % 26.41 47.3 %
Q1 2020 123.65 (4.8 %) 20.95 24.7 % 16.44 22.7 %
Q2 2020 108.62 (18.6 %) 14.67 (18.7 %) 10.31 (25.9 %)
Q3 2020 101.54 (30.9 %) 14.93 (36.4 %) 10.85 (42.3 %)
Q4 2020 91.05 (16.8 %) 23.64 (21.6 %) 20.10 (23.9 %)
Q1 2021 118.14 (4.5 %) 22.64 8.1 % 17.98 9.4 %
Q2 2021 124.59 14.7 % 19.75 34.6 % 15.15 46.9 %
Q3 2021 165.49 63.0 % 16.03 7.4 % 10.62 (2.1 %)
Q4 2021 140.80 54.6 % 29.40 24.4 % 25.84 28.5 %
Q1 2022 151.84 28.5 % 12.41 (45.2 %) 7.74 (56.9 %)
Q2 2022 184.27 47.9 % 14.68 (25.7 %) 9.76 (35.6 %)
Q3 2022 171.50 3.6 % 9.35 (41.7 %) 4.64 (56.4 %)
Q4 2022 117.14 (16.8 %) 21.25 (27.7 %) 10.75 (58.4 %)
Q1 2023 156.79 3.3 % 11.87 (4.4 %) 6.21 (19.8 %)
Q2 2023 150.48 (18.3 %) 15.93 8.5 % 10.84 11.0 %
Q3 2023 156.45 (8.8 %) 16.91 80.8 % 11.74 153.2 %
Q4 2023 108.77 (7.1 %) 25.74 21.1 % 18.75 74.4 %
Q1 2024 137.09 (12.6 %) 14.89 25.5 % 5.80 (6.5 %)
Q2 2024 145.38 (3.4 %) 13.48 (15.4 %) 7.05 (34.9 %)
Q3 2024 146.45 (6.4 %) 15.63 (7.5 %) 9.26 (21.1 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2015 - - - - - -
Q2 2015 - - - - - -
Q3 2015 - - - - - -
Q4 2015 - - - - - -
Q1 2016 - - - - - -
Q2 2016 - - - - - -
Q3 2016 16.60 - 0.74 - 16.60 0.74
Q4 2016 1.65 - 0.07 (3.51) 5.16 0.23
Q1 2017 12.06 - 0.54 - 12.06 0.54
Q2 2017 17.21 - 0.76 - 17.21 0.76
Q3 2017 17.17 3.5 % 0.76 - 17.17 0.76
Q4 2017 0.45 (72.8 %) 0.02 - 0.45 0.02
Q1 2018 4.25 (64.8 %) 0.19 - 4.25 0.19
Q2 2018 7.85 (54.4 %) 0.35 - 7.85 0.35
Q3 2018 9.52 (44.6 %) 0.42 - 9.52 0.42
Q4 2018 13.05 2806.2 % 0.58 - 13.05 0.58
Q1 2019 9.13 114.8 % 0.41 - 9.13 0.41
Q2 2019 10.14 29.2 % 0.45 - 10.14 0.45
Q3 2019 14.97 57.4 % 0.67 - 14.97 0.67
Q4 2019 22.39 71.6 % 1.00 - 22.39 1.00
Q1 2020 12.91 41.4 % 0.57 - 12.91 0.57
Q2 2020 6.62 (34.7 %) 0.29 - 6.62 0.29
Q3 2020 7.20 (51.9 %) 0.32 - 7.20 0.32
Q4 2020 13.84 (38.2 %) 0.62 - 13.84 0.62
Q1 2021 20.32 57.4 % 0.90 2.52 17.81 0.79
Q2 2021 16.28 145.9 % 0.72 4.89 11.39 0.51
Q3 2021 7.47 3.8 % 0.33 0.03 7.44 0.33
Q4 2021 20.50 48.1 % 0.91 0.18 20.32 0.90
Q1 2022 5.91 (70.9 %) 0.26 - 5.91 0.26
Q2 2022 4.01 (75.4 %) 0.18 - 4.01 0.18
Q3 2022 0.42 (94.4 %) 0.02 - 0.42 0.02
Q4 2022 5.40 (73.7 %) 0.24 - 5.40 0.24
Q1 2023 1.93 (67.4 %) 0.09 - 1.92 0.09
Q2 2023 7.84 95.6 % 0.35 - 7.84 0.35
Q3 2023 7.16 1597.6 % 0.32 - 7.16 0.32
Q4 2023 16.95 213.7 % 0.75 - 16.95 0.75
Q1 2024 3.70 92.4 % 0.16 - 3.70 0.16
Q2 2024 (1.54) (119.6 %) (0.07) (1.10) (0.44) (0.02)
Q3 2024 4.06 (43.4 %) 0.18 - 4.06 0.18

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 21.41 % 22.03 % 13.53 %
Q3 2017 19.69 % 21.09 % 12.61 %
Q4 2017 18.44 % 19.93 % 11.10 %
Q1 2018 16.00 % 17.58 % 8.97 %
Q2 2018 13.47 % 14.82 % 6.64 %
Q3 2018 11.78 % 13.57 % 4.72 %
Q4 2018 13.31 % 15.20 % 7.10 %
Q1 2019 13.66 % 15.58 % 7.59 %
Q2 2019 14.16 % 16.27 % 8.15 %
Q3 2019 15.18 % 17.17 % 9.12 %
Q4 2019 17.02 % 19.15 % 10.90 %
Q1 2020 18.03 % 20.08 % 11.77 %
Q2 2020 18.26 % 20.45 % 11.64 %
Q3 2020 18.20 % 20.91 % 11.08 %
Q4 2020 17.46 % 20.49 % 9.55 %
Q1 2021 18.09 % 21.27 % 10.84 %
Q2 2021 18.60 % 21.75 % 11.54 %
Q3 2021 16.44 % 18.96 % 10.11 %
Q4 2021 16.00 % 18.29 % 10.38 %
Q1 2022 13.32 % 15.49 % 7.73 %
Q2 2022 11.29 % 13.20 % 5.87 %
Q3 2022 10.16 % 12.14 % 4.73 %
Q4 2022 9.24 % 10.17 % 2.52 %
Q1 2023 9.08 % 9.83 % 1.87 %
Q2 2023 9.80 % 10.55 % 2.62 %
Q3 2023 11.36 % 12.02 % 3.84 %
Q4 2023 12.31 % 13.52 % 5.92 %
Q1 2024 13.29 % 13.85 % 6.45 %
Q2 2024 12.97 % 13.31 % 5.00 %
Q3 2024 12.97 % 13.21 % 4.51 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2015 - - - -
Q2 2015 - - - -
Q3 2015 - - - -
Q4 2015 - - - -
Q1 2016 - - - -
Q2 2016 - - - -
Q3 2016 22.50 - - 6.25
Q4 2016 22.50 - - 6.32
Q1 2017 22.50 - - 6.86
Q2 2017 22.50 2.11 2.27 7.62
Q3 2017 22.50 2.14 2.29 8.39
Q4 2017 22.50 2.08 2.08 8.41
Q1 2018 22.50 1.74 1.74 7.93
Q2 2018 22.50 1.32 1.32 7.62
Q3 2018 22.50 0.98 0.98 8.04
Q4 2018 22.50 1.54 1.54 8.57
Q1 2019 22.50 1.76 1.76 8.97
Q2 2019 22.50 1.86 1.86 8.76
Q3 2019 22.50 2.10 2.10 9.42
Q4 2019 22.50 2.52 2.52 9.92
Q1 2020 22.50 2.69 2.69 10.50
Q2 2020 22.50 2.53 2.53 10.28
Q3 2020 22.50 2.18 2.18 10.60
Q4 2020 22.50 1.80 1.80 11.22
Q1 2021 22.50 2.13 2.02 12.13
Q2 2021 22.50 2.56 2.23 12.17
Q3 2021 22.50 2.57 2.24 12.51
Q4 2021 22.50 2.87 2.53 13.42
Q1 2022 22.50 2.23 2.00 13.69
Q2 2022 22.50 1.68 1.67 12.88
Q3 2022 22.50 1.37 1.36 12.91
Q4 2022 22.50 0.70 0.70 13.15
Q1 2023 22.50 0.52 0.52 13.23
Q2 2023 22.50 0.69 0.69 12.98
Q3 2023 22.50 0.99 0.99 13.30
Q4 2023 22.50 1.51 1.51 14.05
Q1 2024 22.50 1.58 1.58 14.22
Q2 2024 22.50 1.17 1.22 12.80
Q3 2024 22.50 1.03 1.08 12.97

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 16.70 15.57 4.26
Q4 2017 15.79 15.79 3.91
Q1 2018 17.92 17.92 3.92
Q2 2018 20.95 20.95 3.63
Q3 2018 24.95 24.95 3.04
Q4 2018 17.70 17.70 3.18
Q1 2019 15.55 15.55 3.05
Q2 2019 14.31 14.31 3.04
Q3 2019 14.34 14.34 3.20
Q4 2019 12.45 12.45 3.16
Q1 2020 10.96 10.96 2.80
Q2 2020 12.94 12.94 3.18
Q3 2020 19.12 19.12 3.94
Q4 2020 29.28 29.28 4.71
Q1 2021 26.01 27.45 4.57
Q2 2021 22.17 25.44 4.67
Q3 2021 21.65 24.84 4.46
Q4 2021 19.84 22.49 4.24
Q1 2022 26.38 29.36 4.29
Q2 2022 21.56 21.68 2.82
Q3 2022 26.67 26.82 2.83
Q4 2022 44.74 44.75 2.38
Q1 2023 64.21 64.21 2.54
Q2 2023 56.16 56.16 3.00
Q3 2023 37.19 37.19 2.77
Q4 2023 24.54 24.54 2.63
Q1 2024 27.20 27.20 3.03
Q2 2024 33.61 32.26 3.07
Q3 2024 35.49 33.88 2.82

Business Segments (Million)

Compared With The
Period Flasks sector Plastic covers sector
Q4 2016 65.84 8.58
Q1 2017 75.83 8.45
Q2 2017 110.81 17.95
Q3 2017 100.76 20.99
Q4 2017 76.80 10.72
Q1 2018 83.88 13.89
Q2 2018 119.58 21.09
Q3 2018 120.92 20.65
Q4 2018 94.88 13.63
Q1 2019 112.59 17.30
Q2 2019 112.71 20.71
Q3 2019 123.17 23.83
Q4 2019 94.29 15.16
Q1 2020 106.27 17.38
Q2 2020 89.74 18.88
Q3 2020 83.01 18.53
Q4 2020 73.38 17.67
Q1 2021 101.58 16.56
Q2 2021 104.26 20.33
Q3 2021 144.07 21.42
Q4 2021 124.79 16.01
Q1 2022 131.49 20.34
Q2 2022 159.30 24.97
Q3 2022 146.85 24.65
Q4 2022 95.96 21.18
Q1 2023 136.52 20.27
Q2 2023 127.29 23.19
Q3 2023 127.12 29.33
Q4 2023 86.74 22.03
Q1 2024 113.38 23.72
Q2 2024 120.83 24.55
Q3 2024 117.85 28.60

Current
Market Cap (M Riyal) 758.25
Enterprise Value (EV) (M) 947.35
Shares Outstanding ((M)) 22.50
EPS ( Riyal) (TTM) 1.03
Book Value (BV) ( Riyal) 12.97
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 31.24
P/E (TTM) 32.72
Price/book 2.60
Return on Average Assets (%) (TTM) 4.1
Return on Average Equity (%) (TTM) 7.8

Share Price

Zahrat Al Waha for Trading Co. (OASIS)


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