Savola’s net profit plunges 96% in Q1

Savola’s net profit plunges 96% in Q1

11/05/2017 Argaam Exclusive

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Savola Group, Saudi Arabia’s largest food producer, reported a net profit of SAR 4.8 million for the first quarter of 2017, a 96 percent year-on-year (YoY) plunge attributed to lower gross profit driven by lower sales and margins in the retail sector, higher zakat and tax, and higher share of minority.

 

The drop in profit was despite non-recurring net positive impact of SAR 30 million from dilution gain on deconsolidation of United Sugar Company- Egypt (USCE), and reduced losses from USCE due to lower currency exchange loss.

The company swung to net profit in Q1, compared to a net loss of SAR 913.5 million in the previous quarter due to non-recurring items recorded in Q4 2016, including impairment of assets and goodwill related to Egypt operations in Savola Foods Co., inventory reduction costs in Panda Retail Co., and impairment in the group of non-core investments.

 

Savola also recorded slightly lower operating expenses in Q1 2017, along with reduced financial charges and reduced losses from USCE.



Current Quarter Comparison (M)

Compared With The
Item Q1 2016 Q1 2017 Change‬
Revenues 6,421.75 5,786.91 (9.9 %)
Gross Income 1,273.15 1,040.13 (18.3 %)
Operating Income 242.12 18.06 (92.5 %)
Net Income 119.38 4.78 (96.0 %)
Average Shares 241.05 241.05 -
EPS (Riyals) 0.50 0.02 (96.0 %)


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2008 2,996.43 33.3 % 481.74 27.4 % 95.58 (8.0 %)
Q2 2008 3,312.54 20.4 % 549.44 33.9 % 157.35 294.4 %
Q3 2008 3,919.41 41.0 % 511.13 10.3 % 117.37 (17.8 %)
Q4 2008 3,593.00 36.6 % 272.02 (39.8 %) (144.50) (219.6 %)
Q1 2009 3,635.04 21.3 % 616.32 27.9 % 149.77 56.7 %
Q2 2009 4,356.80 31.5 % 776.33 41.3 % 211.70 34.5 %
Q3 2009 5,103.67 30.2 % 947.50 85.4 % 374.01 218.7 %
Q4 2009 4,821.69 34.2 % 767.16 182.0 % 209.47 245.0 %
Q1 2010 4,778.78 31.5 % 804.53 30.5 % 177.30 18.4 %
Q2 2010 4,868.07 11.7 % 709.82 (8.6 %) 135.85 (35.8 %)
Q3 2010 5,657.53 10.9 % 906.14 (4.4 %) 297.28 (20.5 %)
Q4 2010 5,725.10 18.7 % 994.74 29.7 % 331.52 58.3 %
Q1 2011 5,641.74 18.1 % 866.33 7.7 % 209.35 18.1 %
Q2 2011 6,312.58 29.7 % 959.88 35.2 % 277.91 104.6 %
Q3 2011 6,816.63 20.5 % 981.97 8.4 % 307.72 3.5 %
Q4 2011 6,424.75 12.2 % 1,162.55 16.9 % 468.45 41.3 %
Q1 2012 6,588.97 16.8 % 995.71 14.9 % 315.15 50.5 %
Q2 2012 6,989.08 10.7 % 1,193.39 24.3 % 449.42 61.7 %
Q3 2012 6,869.78 0.8 % 1,161.19 18.3 % 432.29 40.5 %
Q4 2012 6,943.66 8.1 % 1,411.28 21.4 % 607.10 29.6 %
Q1 2013 7,189.86 9.1 % 1,390.62 39.7 % 601.26 90.8 %
Q2 2013 6,723.33 (3.8 %) 1,263.61 5.9 % 479.79 6.8 %
Q3 2013 6,320.13 (8.0 %) 1,167.37 0.5 % 399.06 (7.7 %)
Q4 2013 5,047.40 (27.3 %) 951.93 (32.5 %) 249.23 (58.9 %)
Q1 2014 6,240.84 (13.2 %) 1,092.94 (21.4 %) 297.17 (50.6 %)
Q2 2014 7,336.58 9.1 % 1,251.38 (1.0 %) 402.68 (16.1 %)
Q3 2014 6,150.04 (2.7 %) 1,150.73 (1.4 %) 362.59 (9.1 %)
Q4 2014 6,860.38 35.9 % 1,368.67 43.8 % 414.67 66.4 %
Q1 2015 6,223.71 (0.3 %) 1,159.16 6.1 % 227.93 (23.3 %)
Q2 2015 7,036.49 (4.1 %) 1,353.24 8.1 % 326.05 (19.0 %)
Q3 2015 5,603.56 (8.9 %) 1,238.87 7.7 % 245.60 (32.3 %)
Q4 2015 6,261.83 (8.7 %) 1,274.13 (6.9 %) 189.68 (54.3 %)
Q1 2016 6,421.75 3.2 % 1,273.15 9.8 % 242.12 6.2 %
Q2 2016 7,140.78 1.5 % 1,332.79 (1.5 %) 217.40 (33.3 %)
Q3 2016 6,154.31 9.8 % 1,182.55 (4.5 %) 113.77 (53.7 %)
Q4 2016 6,613.95 5.6 % 864.48 (32.2 %) (228.79) (220.6 %)
Q1 2017 5,786.91 (9.9 %) 1,040.13 (18.3 %) 18.06 (92.5 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2008 250.48 82.2 % 1.11 - 250.48 1.11
Q2 2008 257.69 (66.3 %) 1.14 - 257.69 1.14
Q3 2008 158.04 4.4 % 0.70 - 158.04 0.70
Q4 2008 (463.85) (361.5 %) (2.06) - (463.85) (2.06)
Q1 2009 192.55 (23.1 %) 0.85 - 192.55 0.85
Q2 2009 212.50 (17.5 %) 0.94 - 212.50 0.94
Q3 2009 277.89 75.8 % 1.23 - 277.89 1.23
Q4 2009 268.62 157.9 % 1.19 318.12 (49.50) (0.22)
Q1 2010 394.04 104.6 % 1.75 198.06 195.98 0.87
Q2 2010 207.65 (2.3 %) 0.92 1.01 206.64 0.92
Q3 2010 282.99 1.8 % 1.25 1.90 281.10 1.25
Q4 2010 2.02 (99.2 %) 0.01 (117.84) 119.86 0.53
Q1 2011 165.16 (58.1 %) 0.73 - 165.16 0.73
Q2 2011 230.74 11.1 % 1.02 - 230.74 1.02
Q3 2011 307.89 8.8 % 1.36 - 307.89 1.36
Q4 2011 498.59 24607.3 % 2.21 152.78 345.81 1.53
Q1 2012 242.31 46.7 % 1.07 - 242.31 1.07
Q2 2012 341.32 47.9 % 1.51 - 341.32 1.51
Q3 2012 405.22 31.6 % 1.80 - 405.22 1.80
Q4 2012 413.36 (17.1 %) 1.83 46.65 366.71 1.62
Q1 2013 295.20 21.8 % 1.29 - 295.20 1.29
Q2 2013 387.76 13.6 % 1.69 - 387.76 1.69
Q3 2013 457.36 12.9 % 1.99 - 457.36 1.99
Q4 2013 564.16 36.5 % 2.46 200.93 363.23 1.58
Q1 2014 423.26 43.4 % 1.76 5.02 418.24 1.74
Q2 2014 513.27 32.4 % 2.13 35.95 477.33 1.98
Q3 2014 701.43 53.4 % 2.91 205.74 495.69 2.06
Q4 2014 434.36 (23.0 %) 1.80 (54.13) 488.48 2.03
Q1 2015 470.51 11.2 % 1.95 227.39 243.12 1.01
Q2 2015 434.37 (15.4 %) 1.80 (0.67) 435.03 1.80
Q3 2015 371.56 (47.0 %) 1.54 5.72 365.84 1.52
Q4 2015 515.32 18.6 % 2.14 199.19 316.13 1.31
Q1 2016 119.38 (74.6 %) 0.50 (107.31) 226.69 0.94
Q2 2016 253.52 (41.6 %) 1.05 (42.26) 295.78 1.23
Q3 2016 179.51 (51.7 %) 0.74 (3.13) 182.64 0.76
Q4 2016 (915.70) (277.7 %) (3.80) (597.46) (318.23) (1.32)
Q1 2017 4.78 (96.0 %) 0.02 15.61 (10.83) (0.04)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 16.20 % 7.36 % 12.04 %
Q2 2008 16.61 % 7.05 % 7.14 %
Q3 2008 15.51 % 6.35 % 6.56 %
Q4 2008 13.13 % 7.49 % 1.46 %
Q1 2009 13.48 % 7.68 % 1.00 %
Q2 2009 14.03 % 8.25 % 0.64 %
Q3 2009 15.65 % 9.45 % 1.31 %
Q4 2009 17.34 % 9.16 % 3.54 %
Q1 2010 17.29 % 8.89 % 3.34 %
Q2 2010 16.50 % 8.17 % 3.22 %
Q3 2010 15.84 % 7.64 % 3.15 %
Q4 2010 16.24 % 8.34 % 3.82 %
Q1 2011 15.88 % 8.17 % 3.53 %
Q2 2011 15.97 % 8.13 % 3.41 %
Q3 2011 15.52 % 7.78 % 3.36 %
Q4 2011 15.76 % 7.23 % 4.17 %
Q1 2012 15.68 % 7.39 % 4.31 %
Q2 2012 16.16 % 7.80 % 4.61 %
Q3 2012 16.79 % 8.26 % 4.97 %
Q4 2012 17.38 % 8.64 % 4.95 %
Q1 2013 18.42 % 9.48 % 5.03 %
Q2 2013 18.85 % 9.69 % 5.25 %
Q3 2013 19.25 % 9.79 % 5.55 %
Q4 2013 18.88 % 9.44 % 5.95 %
Q1 2014 18.40 % 8.63 % 6.69 %
Q2 2014 17.89 % 8.17 % 6.88 %
Q3 2014 17.95 % 8.18 % 7.08 %
Q4 2014 18.29 % 7.92 % 7.07 %
Q1 2015 18.55 % 7.64 % 6.42 %
Q2 2015 19.15 % 7.48 % 6.33 %
Q3 2015 19.90 % 7.24 % 5.96 %
Q4 2015 20.00 % 6.42 % 5.41 %
Q1 2016 20.29 % 6.53 % 5.31 %
Q2 2016 20.13 % 6.32 % 4.74 %
Q3 2016 19.49 % 5.49 % 3.93 %
Q4 2016 17.67 % 4.04 % 1.47 %
Q1 2017 17.20 % 3.34 % 0.58 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 225.71 5.95 5.95 31.14
Q2 2008 225.71 3.71 3.71 32.33
Q3 2008 225.71 3.74 3.74 30.66
Q4 2008 225.71 0.90 0.90 28.31
Q1 2009 225.71 0.64 0.64 28.69
Q2 2009 225.71 0.44 0.44 29.08
Q3 2009 225.71 0.97 0.97 29.67
Q4 2009 225.71 4.22 2.81 30.84
Q1 2010 225.71 5.11 2.82 32.64
Q2 2010 225.71 5.09 2.80 31.53
Q3 2010 225.71 5.11 2.81 32.05
Q4 2010 225.71 3.93 3.56 31.10
Q1 2011 225.71 2.91 3.42 31.07
Q2 2011 225.71 3.02 3.53 31.65
Q3 2011 225.71 3.13 3.65 32.25
Q4 2011 225.71 5.33 4.65 34.21
Q1 2012 225.71 5.67 4.99 36.71
Q2 2012 225.71 6.16 5.48 35.23
Q3 2012 225.71 6.59 5.91 36.09
Q4 2012 225.71 6.21 6.01 36.71
Q1 2013 229.55 6.34 6.14 35.32
Q2 2013 229.55 6.54 6.34 35.91
Q3 2013 229.55 6.77 6.57 36.87
Q4 2013 229.55 7.43 6.55 40.04
Q1 2014 241.05 7.60 6.75 41.12
Q2 2014 241.05 8.12 7.12 41.02
Q3 2014 241.05 9.14 7.28 42.88
Q4 2014 241.05 8.60 7.80 41.34
Q1 2015 241.05 8.79 7.07 41.91
Q2 2015 241.05 8.47 6.90 43.46
Q3 2015 241.05 7.10 6.36 42.62
Q4 2015 241.05 7.43 5.64 43.77
Q1 2016 241.05 5.98 5.57 40.83
Q2 2016 241.05 5.23 5.00 41.13
Q3 2016 241.05 4.43 4.24 40.99
Q4 2016 241.05 (1.51) 1.60 34.09
Q1 2017 241.05 (1.98) 0.62 34.08

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 4.53 4.53 0.86
Q2 2008 8.16 8.16 0.94
Q3 2008 6.48 6.48 0.79
Q4 2008 22.54 22.54 0.71
Q1 2009 26.62 26.62 0.59
Q2 2009 42.26 42.26 0.64
Q3 2009 24.43 24.43 0.80
Q4 2009 5.98 8.99 0.82
Q1 2010 5.84 10.57 0.91
Q2 2010 5.75 10.46 0.93
Q3 2010 5.59 10.16 0.89
Q4 2010 6.80 7.51 0.86
Q1 2011 7.99 6.81 0.75
Q2 2011 7.53 6.43 0.72
Q3 2011 6.94 5.95 0.67
Q4 2011 4.50 5.15 0.70
Q1 2012 5.07 5.75 0.78
Q2 2012 4.71 5.29 0.82
Q3 2012 4.90 5.47 0.90
Q4 2012 5.38 5.56 0.91
Q1 2013 5.38 5.55 0.98
Q2 2013 6.03 6.22 1.12
Q3 2013 6.49 6.69 1.21
Q4 2013 6.94 7.87 1.23
Q1 2014 6.92 7.79 1.28
Q2 2014 6.65 7.58 1.32
Q3 2014 7.12 8.93 1.52
Q4 2014 7.16 7.89 1.49
Q1 2015 6.08 7.56 1.28
Q2 2015 6.32 7.76 1.23
Q3 2015 6.39 7.13 1.06
Q4 2015 5.29 6.96 0.90
Q1 2016 5.46 5.86 0.80
Q2 2016 5.46 5.71 0.69
Q3 2016 5.63 5.88 0.61
Q4 2016 NEG 19.55 0.92
Q1 2017 NEG 52.04 0.95

Business Segments (Million)

Compared With The
Period Food sector Retail sector Food services Investments Plastic Manufacturing & Whole sale sector Disposals
Q1 2008 - 1,216.75 - - - 1,779.67 -
Q2 2008 - 1,315.45 - 20.17 - 1,976.92 -
Q3 2008 - 1,614.46 - 10.08 - 2,294.87 -
Q4 2008 - 1,972.98 - (30.25) - 1,650.27 -
Q1 2009 - 1,835.58 - - - 1,799.46 -
Q2 2009 - 1,895.71 - - - 2,461.09 -
Q3 2009 - 2,108.28 - - - 2,995.40 -
Q4 2009 - 2,080.53 - - - 2,741.16 -
Q1 2010 - 1,871.14 - - - 2,907.64 -
Q2 2010 - 1,902.50 - - - 2,965.56 -
Q3 2010 - 2,245.91 - - - 3,411.62 -
Q4 2010 12,026.53 2,163.12 - 154.59 883.98 (9284.82) (218.30)
Q1 2011 3,296.45 2,161.01 - 32.59 209.36 - (57.66)
Q2 2011 3,875.14 2,216.41 - 26.04 261.85 - (68.54)
Q3 2011 4,069.58 2,489.74 - 34.65 274.60 - (50.26)
Q4 2011 3,982.74 2,314.39 - 29.54 255.73 - (157.65)
Q1 2012 4,068.67 2,329.29 - 20.45 236.24 - (65.67)
Q2 2012 4,327.47 2,427.10 - 19.71 290.20 - (75.41)
Q3 2012 3,915.84 2,722.23 - 19.71 273.72 - (61.72)
Q4 2012 4,076.70 2,677.90 - 78.67 253.03 - (142.63)
Q1 2013 4,386.49 2,606.25 - 19.29 249.06 - (71.22)
Q2 2013 3,859.23 2,635.50 - 19.29 304.51 - (95.20)
Q3 2013 3,241.41 2,813.52 - 19.29 304.95 - (59.03)
Q4 2013 3,065.27 2,869.33 - 83.10 (858.51) - (111.80)
Q1 2014 3,463.82 2,818.18 - 16.37 - - (57.53)
Q2 2014 4,119.66 3,283.45 - 15.32 - - (81.85)
Q3 2014 3,336.91 2,868.20 - 15.33 - - (70.40)
Q4 2014 3,671.56 3,234.54 - 80.15 - - (125.88)
Q1 2015 3,086.66 3,192.49 - 14.69 - - (70.13)
Q2 2015 3,369.06 3,781.59 - 14.69 - - (128.85)
Q3 2015 2,553.93 3,091.95 - 14.69 - - (57.01)
Q4 2015 2,802.55 3,466.70 - 100.78 - - (108.20)
Q1 2016 2,924.81 3,271.22 283.55 13.75 - - (71.58)
Q2 2016 3,102.65 3,873.85 277.73 13.75 - - (127.20)
Q3 2016 2,717.25 3,174.73 315.17 13.75 - - (66.58)
Q4 2016 3,142.01 3,252.58 280.23 96.36 - - (157.23)
Q1 2017 2,954.09 2,674.10 275.01 11.54 - - (127.83)

Analysts Estimates (Million)

Item Q1 2017 (e) Q1 2017 (a) Change‬
Average 127.75 4.78 (96.3 %)

Estimates vs Actual (Million)

Item Q1 2017 (e) Q1 2017 (a) Change
Albilad Capital 104.00 4.78 (95.4) %
Arbah Capital 105.00 4.78 (95.4) %
SNB Capital 141.00 4.78 (96.6) %
Al Rajhi Capital 161.00 4.78 (97.0) %

Current
Market Cap (M Riyal) 10,080.00
Enterprise Value (EV) (M) 11,312.10
Shares Outstanding ((M)) 300.00
EPS ( Riyal) (TTM) 2.97
Book Value (BV) ( Riyal) 49.09
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 12.92
P/E (TTM) 11.30
Price/book 0.68
Return on Average Assets (%) (TTM) 2.8
Return on Average Equity (%) (TTM) 7.7

Share Price

33.60
3.05 9.98 %

Savola Group (SAVOLA GROUP)


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