WAFRAH’s net profit down 24% to SAR 3.7m for the first nine months of 2014

WAFRAH’s net profit down 24% to SAR 3.7m for the first nine months of 2014

30/09/2014 Argaam Exclusive

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Wafrah for Industry and Development, reported a net profit of SAR 3.7m for the nine months ended September 30,2014, a 24% decrease compared to the same period last year.

A net profit of SAR 0.5m was reported for Q3-2014.



Financials (M)

Item 9m 2013 9m 2014 Change‬
Revenues 67.27 69.30 3.0 %
Gross Income 22.16 22.65 2.2 %
Operating Income 6.61 2.72 (58.9 %)
Net Income 4.90 3.74 (23.6 %)
Average Shares 19.70 19.70 -
EPS (Riyals) 0.25 0.19 (23.6 %)

The Company attributed the decrease of the first nine months of 2014’s net profit compared to the same period last year to the increase of administrative and marketing expenses, which had a net impact on operating profit, despite the increase of revenue as a result of the other item shed some investment funds, which had an effect on the item net profit before Zakat and also on the estimated final net profit

The Company attributed the decline of Q3-2014’s net profit compared to the same period last year to the increase of sales cost and lower selling prices, the cost of a high degree to meet the intense competition in the market, in addition to the increase of general & administrative and marketing expenses were higher item of other revenue output resulting from spills some investment funds to improve net profit.

The decline of Q3-2014’s net profit compared to the previous period (Q2-2014) was attributed to the decrease of sales.



Current Quarter Comparison (M)

Compared With The
Item Q3 2013 Q3 2014 Change‬
Revenues 20.34 20.51 0.8 %
Gross Income 6.64 4.88 (26.4 %)
Operating Income 1.68 (1.26) (175.0 %)
Net Income 1.00 0.53 (47.4 %)
Average Shares 19.70 19.70 -
EPS (Riyals) 0.05 0.03 (47.4 %)


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2005 10.50 0.9 % 2.00 (55.0 %) (0.99) (584.9 %)
Q2 2005 13.20 (4.0 %) 3.80 (29.4 %) 0.09 (89.3 %)
Q3 2005 16.51 0.6 % 3.14 (44.0 %) 0.98 (27.1 %)
Q4 2005 11.44 (6.8 %) 2.91 (24.8 %) (4.13) (223.7 %)
Q1 2006 11.84 12.8 % 3.19 59.5 % 0.59 159.2 %
Q2 2006 13.92 5.5 % 3.52 (7.3 %) (0.43) (589.8 %)
Q3 2006 14.62 (11.4 %) 3.64 16.0 % 0.65 (33.5 %)
Q4 2006 13.51 18.1 % 6.28 116.0 % 2.81 168.1 %
Q1 2007 16.48 39.2 % 7.39 131.6 % 3.53 500.5 %
Q2 2007 18.55 33.3 % 8.51 141.5 % 4.62 1171.5 %
Q3 2007 18.01 23.2 % 6.60 81.4 % 1.55 137.7 %
Q4 2007 11.92 (11.8 %) 3.07 (51.1 %) (1.55) (155.3 %)
Q1 2008 17.03 3.4 % 5.90 (20.2 %) 2.79 (20.9 %)
Q2 2008 19.89 7.2 % 6.98 (18.0 %) 3.14 (32.0 %)
Q3 2008 26.07 44.8 % 10.12 53.4 % 6.45 317.5 %
Q4 2008 12.59 5.6 % 3.50 13.9 % (0.65) 58.2 %
Q1 2009 17.98 5.5 % 6.63 12.5 % 3.08 10.3 %
Q2 2009 20.72 4.2 % 7.06 1.2 % 2.42 (22.9 %)
Q3 2009 18.77 (28.0 %) 7.08 (30.0 %) 2.00 (69.0 %)
Q4 2009 13.80 9.6 % 4.14 18.6 % (0.39) 40.3 %
Q1 2010 19.33 7.5 % 8.13 22.5 % 3.29 6.7 %
Q2 2010 21.13 2.0 % 7.69 8.9 % 2.72 12.2 %
Q3 2010 20.18 7.5 % 7.25 2.4 % 3.08 54.0 %
Q4 2010 12.85 (6.9 %) 4.64 12.0 % 0.39 200.3 %
Q1 2011 21.36 10.5 % 8.74 7.5 % 3.76 14.4 %
Q2 2011 24.05 13.8 % 8.29 7.8 % 3.18 17.0 %
Q3 2011 21.28 5.4 % 7.53 3.8 % 2.82 (8.2 %)
Q4 2011 15.20 18.3 % 4.14 (10.8 %) (0.64) (264.0 %)
Q1 2012 17.63 (17.5 %) 5.23 (40.1 %) 0.86 (77.1 %)
Q2 2012 25.02 4.0 % 9.21 11.1 % 4.20 32.0 %
Q3 2012 20.95 (1.6 %) 6.91 (8.2 %) 2.19 (22.3 %)
Q4 2012 16.48 8.4 % 5.29 27.8 % 0.63 199.2 %
Q1 2013 21.36 21.2 % 7.04 34.6 % 1.69 96.6 %
Q2 2013 25.56 2.2 % 8.48 (7.8 %) 3.24 (22.7 %)
Q3 2013 20.34 (2.9 %) 6.64 (4.0 %) 1.68 (23.5 %)
Q4 2013 18.89 14.6 % 5.99 13.3 % 1.31 107.4 %
Q1 2014 22.09 3.4 % 8.15 15.8 % 1.58 (6.8 %)
Q2 2014 26.71 4.5 % 9.61 13.3 % 2.40 (26.0 %)
Q3 2014 20.51 0.8 % 4.88 (26.4 %) (1.26) (175.0 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2005 (1.05) (773.1 %) (0.05) - (1.05) (0.05)
Q2 2005 0.05 (93.3 %) 0.00 - 0.05 0.00
Q3 2005 (0.86) (167.6 %) (0.04) - (0.86) (0.04)
Q4 2005 (45.92) (2,866.1 %) (2.33) (41.61) (4.30) (0.22)
Q1 2006 0.73 169.0 % 0.04 - 0.73 0.04
Q2 2006 44.37 85221.2 % 2.25 45.70 (1.33) (0.07)
Q3 2006 0.90 204.8 % 0.05 - 0.90 0.05
Q4 2006 4.80 110.4 % 0.24 - 4.80 0.24
Q1 2007 4.38 504.6 % 0.22 - 4.38 0.22
Q2 2007 3.34 (92.5 %) 0.17 - 3.34 0.17
Q3 2007 1.16 29.0 % 0.06 - 1.16 0.06
Q4 2007 (1.34) (128.0 %) (0.07) - (1.34) (0.07)
Q1 2008 2.86 (34.8 %) 0.15 - 2.86 0.15
Q2 2008 4.30 28.6 % 0.22 - 4.30 0.22
Q3 2008 7.42 541.2 % 0.38 - 7.42 0.38
Q4 2008 (0.45) 66.8 % (0.02) - (0.45) (0.02)
Q1 2009 2.76 (3.3 %) 0.14 - 2.76 0.14
Q2 2009 1.84 (57.2 %) 0.09 - 1.84 0.09
Q3 2009 1.60 (78.4 %) 0.08 - 1.60 0.08
Q4 2009 (0.46) (2.5 %) (0.02) - (0.46) (0.02)
Q1 2010 3.05 10.4 % 0.15 0.00 3.05 0.15
Q2 2010 12.09 556.3 % 0.61 9.72 2.37 0.12
Q3 2010 2.25 40.5 % 0.11 0.02 2.23 0.11
Q4 2010 0.05 110.1 % 0.00 0.07 (0.03) 0.00
Q1 2011 4.48 46.6 % 0.23 - 4.48 0.23
Q2 2011 2.44 (79.8 %) 0.12 - 2.44 0.12
Q3 2011 2.01 (10.4 %) 0.10 - 2.01 0.10
Q4 2011 0.90 1850.0 % 0.05 - 0.90 0.05
Q1 2012 0.50 (88.9 %) 0.03 - 0.50 0.03
Q2 2012 3.52 44.3 % 0.18 - 3.52 0.18
Q3 2012 1.60 (20.8 %) 0.08 - 1.60 0.08
Q4 2012 0.23 (74.5 %) 0.01 - 0.23 0.01
Q1 2013 1.27 156.4 % 0.06 - 1.27 0.06
Q2 2013 2.63 (25.2 %) 0.13 - 2.63 0.13
Q3 2013 1.00 (37.4 %) 0.05 - 1.00 0.05
Q4 2013 2.21 866.8 % 0.11 0.30 1.92 0.10
Q1 2014 1.06 (16.2 %) 0.05 - 1.06 0.05
Q2 2014 2.15 (18.3 %) 0.11 - 2.15 0.11
Q3 2014 0.53 (47.4 %) 0.03 - 0.53 0.03

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2005 31.84 % 17.40 % (1.04 %)
Q2 2005 29.15 % 16.16 % (2.44 %)
Q3 2005 24.39 % 19.15 % (6.48 %)
Q4 2005 22.94 % 14.84 % (11.92 %)
Q1 2006 24.60 % 16.19 % (8.27 %)
Q2 2006 23.75 % 13.84 % (10.73 %)
Q3 2006 25.59 % 8.41 % (7.74 %)
Q4 2006 30.86 % 20.35 % 9.44 %
Q1 2007 35.59 % 24.65 % 14.95 %
Q2 2007 40.87 % 31.60 % 21.25 %
Q3 2007 43.24 % 32.19 % 20.56 %
Q4 2007 39.36 % 28.52 % 11.61 %
Q1 2008 36.75 % 26.27 % 9.18 %
Q2 2008 33.72 % 22.67 % 10.43 %
Q3 2008 34.79 % 26.11 % 17.67 %
Q4 2008 35.05 % 24.06 % 18.70 %
Q1 2009 35.58 % 24.19 % 18.34 %
Q2 2009 35.30 % 23.10 % 14.97 %
Q3 2009 34.65 % 19.33 % 8.22 %
Q4 2009 34.97 % 19.53 % 8.07 %
Q1 2010 36.38 % 19.58 % 8.31 %
Q2 2010 37.04 % 19.89 % 8.98 %
Q3 2010 36.56 % 20.76 % 9.65 %
Q4 2010 37.70 % 21.88 % 10.37 %
Q1 2011 37.50 % 21.86 % 11.98 %
Q2 2011 36.87 % 22.28 % 11.63 %
Q3 2011 36.71 % 22.07 % 11.19 %
Q4 2011 35.04 % 20.52 % 12.00 %
Q1 2012 32.23 % 18.12 % 7.48 %
Q2 2012 32.99 % 18.86 % 8.75 %
Q3 2012 32.35 % 18.17 % 8.26 %
Q4 2012 33.27 % 19.40 % 7.29 %
Q1 2013 33.94 % 19.32 % 7.89 %
Q2 2013 32.87 % 17.81 % 6.79 %
Q3 2013 32.78 % 16.81 % 6.13 %
Q4 2013 32.68 % 16.52 % 7.91 %
Q1 2014 33.68 % 16.08 % 7.61 %
Q2 2014 34.53 % 14.82 % 6.96 %
Q3 2014 32.48 % 11.65 % 6.41 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2005 19.70 (0.03) (0.03) 8.26
Q2 2005 19.70 (0.06) (0.06) 8.27
Q3 2005 19.70 (0.17) (0.17) 7.44
Q4 2005 19.70 (2.43) (0.31) 5.09
Q1 2006 19.70 (2.34) (0.22) 5.09
Q2 2006 19.70 (0.09) (0.29) 7.29
Q3 2006 19.70 0.00 (0.20) 7.32
Q4 2006 19.70 2.58 0.26 7.54
Q1 2007 19.70 2.76 0.44 7.76
Q2 2007 19.70 0.68 0.68 8.03
Q3 2007 19.70 0.69 0.69 8.09
Q4 2007 19.70 0.38 0.38 8.03
Q1 2008 19.70 0.31 0.31 8.18
Q2 2008 19.70 0.35 0.35 8.40
Q3 2008 19.70 0.67 0.67 8.76
Q4 2008 19.70 0.72 0.72 8.64
Q1 2009 19.70 0.71 0.71 8.78
Q2 2009 19.70 0.59 0.59 8.91
Q3 2009 19.70 0.29 0.29 9.00
Q4 2009 19.70 0.29 0.29 8.97
Q1 2010 19.70 0.31 0.31 9.13
Q2 2010 19.70 0.83 0.33 9.74
Q3 2010 19.70 0.86 0.36 9.86
Q4 2010 19.70 0.89 0.39 9.86
Q1 2011 19.70 0.96 0.46 10.10
Q2 2011 19.70 0.47 0.46 10.24
Q3 2011 19.70 0.46 0.45 10.33
Q4 2011 19.70 0.50 0.50 10.38
Q1 2012 19.70 0.30 0.30 10.46
Q2 2012 19.70 0.35 0.35 10.61
Q3 2012 19.70 0.33 0.33 10.71
Q4 2012 19.70 0.30 0.30 10.72
Q1 2013 19.70 0.34 0.34 10.81
Q2 2013 19.70 0.29 0.29 10.98
Q3 2013 19.70 0.26 0.26 11.05
Q4 2013 19.70 0.36 0.35 11.19
Q1 2014 19.70 0.35 0.34 11.29
Q2 2014 19.70 0.33 0.31 11.43
Q3 2014 19.70 0.30 0.29 10.85

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2005 NEG NEG 2.96
Q2 2005 NEG NEG 3.86
Q3 2005 NEG NEG 7.27
Q4 2005 NEG NEG 13.49
Q1 2006 NEG NEG 14.59
Q2 2006 NEG NEG 13.54
Q3 2006 More than 100 NEG 19.79
Q4 2006 16.54 More than 100 5.65
Q1 2007 17.59 More than 100 6.27
Q2 2007 56.91 56.91 4.83
Q3 2007 70.85 70.85 6.08
Q4 2007 More than 100 More than 100 5.76
Q1 2008 More than 100 More than 100 3.83
Q2 2008 78.34 78.34 3.30
Q3 2008 23.88 23.88 1.83
Q4 2008 18.54 18.54 1.54
Q1 2009 21.51 21.51 1.75
Q2 2009 44.45 44.45 2.93
Q3 2009 79.58 79.58 2.58
Q4 2009 81.57 81.57 2.65
Q1 2010 82.35 82.40 2.76
Q2 2010 23.81 59.14 2.02
Q3 2010 22.49 52.97 1.96
Q4 2010 21.91 50.12 1.97
Q1 2011 19.26 40.14 1.82
Q2 2011 60.75 61.34 2.77
Q3 2011 59.45 59.92 2.62
Q4 2011 67.45 67.45 3.24
Q1 2012 More than 100 More than 100 3.48
Q2 2012 72.79 72.79 2.41
Q3 2012 90.65 90.65 2.80
Q4 2012 More than 100 More than 100 2.77
Q1 2013 More than 100 More than 100 4.04
Q2 2013 More than 100 More than 100 3.52
Q3 2013 More than 100 More than 100 3.28
Q4 2013 More than 100 More than 100 3.41
Q1 2014 More than 100 More than 100 3.69
Q2 2014 More than 100 More than 100 6.19
Q3 2014 More than 100 More than 100 6.37

Business Segments (Million)

Compared With The
Period Pasta sector Vegetable sector Breakfast beans sector Food Factory Dates Factory
Q3 2007 7.48 7.23 0.58 2.72 -
Q4 2007 2.48 6.08 0.73 2.63 -
Q3 2008 16.11 6.66 0.40 2.91 -
Q4 2008 3.42 6.10 0.23 2.83 -
Q1 2009 7.85 6.78 0.56 2.79 -
Q1 2010 7.71 7.44 0.35 3.84 -
Q3 2011 11.13 8.18 0.10 1.87 -
Q4 2011 4.87 7.78 0.16 2.39 -
Q1 2012 8.72 6.33 0.19 2.40 -
Q2 2012 15.37 7.12 0.25 2.28 -
Q3 2012 11.47 6.39 0.32 2.76 -
Q4 2012 5.43 8.49 0.11 2.46 -
Q1 2013 9.13 9.50 0.06 2.67 -
Q2 2013 15.90 7.34 - 2.35 -
Q3 2013 9.97 7.65 0.17 2.55 -
Q4 2013 4.66 10.89 0.12 3.23 -
Q1 2014 7.93 11.81 0.10 2.24 -
Q2 2014 14.55 9.95 0.09 2.12 -
Q3 2014 4.69 12.16 0.09 3.57 -

Current
Market Cap (M Riyal) 895.91
Enterprise Value (EV) (M) 872.72
Shares Outstanding ((M)) 23.15
EPS ( Riyal) (TTM) 1.05
Book Value (BV) ( Riyal) 10.85
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) 36.85
Price/book 3.57
Return on Average Assets (%) (TTM) 7.4
Return on Average Equity (%) (TTM) 10.0

Share Price

Wafrah for Industry and Development Co. (WAFRAH)


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