Halwani widens 9M 2023 loss to SAR 70.6 mln; Q3 at SAR 42.5 mln

Halwani widens 9M 2023 loss to SAR 70.6 mln; Q3 at SAR 42.5 mln

01/11/2023 Argaam Exclusive

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Halwani Bros Co. slid into a deeper net loss of SAR 70.6 million in first nine months of 2023, compared to SAR 5.1 million in the year-earlier period.  



Financials (M)

Item 9m 2022 9m 2023 Change‬
Revenues 769.80 656.01 (14.8 %)
Gross Income 204.19 139.29 (31.8 %)
Operating Income 26.30 (36.14) (237.4 %)
Net Income (5.12) (70.62) (1,279.8 %)
Average Shares 35.36 35.36 -
EPS (Riyals) (0.14) (2.00) (1,279.8 %)

The food products manufacturer attributed the losses to lower domestic sales, and higher average stock prices of raw materials. Moreover, its subsidiary in Egypt was affected due to the decline in currency exchange rate, which was offset by an increase in the subsidiary’s sales.



Current Quarter Comparison (M)

Compared With The
Item Q3 2022 Q3 2023 Change‬
Revenues 229.76 211.10 (8.1 %)
Gross Income 43.53 29.92 (31.2 %)
Operating Income (10.62) (30.63) (188.4 %)
Net Income (22.97) (42.49) (85.0 %)
Average Shares 35.36 35.36 -
EPS (Riyals) (0.65) (1.20) (85.0 %)

Halwani also widened the third-quarter net loss to SAR 42.5 million from SAR 22.97 million in the year-earlier period, due to lower local sales and higher selling and distribution expenses.

 

The losses increased by 42.8% quarter-on-quarter (QoQ) from SAR 29.76 million in Q2 2023.

 

The YoY deeper loss in Q3 2023 was due to the drop witnessed in the company’s sales inside the Kingdom, amid an increase in average stock prices of raw materials, not to mention the higher YoY selling and distribution expenses during the current quarter, on wider range of promotional campaigns.

 

Moreover, the loss was escalated by financing costs, mainly due to higher interest rates.

 

The loss came despite an increase in the subsidiary’s sales in Egyptian pounds in Egypt, noting that the Egyptian currency exchange rate drop affected the company’s financial performance.

 

Meanwhile, the company attributed the QoQ loss to higher selling and distribution expenses, as a result of the increase in promotional campaigns.

 

Shareholders’ equity, no minority interest, declined to SAR 335.9 million as of Sept. 30, 2023, from SAR 455.7 million a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 266.05 6.4 % 79.52 (8.0 %) 23.63 (23.6 %) 0.67
Q2 2014 273.89 14.7 % 82.08 12.7 % 23.09 5.3 % 0.65
Q3 2014 260.94 14.5 % 74.77 24.1 % 20.46 19.3 % 0.58
Q4 2014 264.08 9.4 % 72.00 7.2 % 23.64 4.9 % 0.67
Q1 2015 287.02 7.9 % 85.38 7.4 % 25.93 9.7 % 0.73
Q2 2015 267.75 (2.2 %) 81.70 (0.5 %) 23.06 (0.1 %) 0.65
Q3 2015 257.76 (1.2 %) 83.94 12.3 % 27.42 34.0 % 0.78
Q4 2015 262.74 (0.5 %) 83.24 15.6 % 38.70 63.7 % 1.09
Q1 2016 277.84 (3.2 %) 91.20 6.8 % 13.66 (47.3 %) 0.39
Q2 2016 236.74 (11.6 %) 79.36 (2.9 %) 32.90 42.7 % 0.93
Q3 2016 257.85 0.0 % 85.54 1.9 % 22.36 (18.5 %) 0.63
Q4 2016 215.21 (18.1 %) 74.61 (10.4 %) (17.01) (144.0 %) (0.48)
Q1 2017 203.48 (26.8 %) 71.08 (22.1 %) 20.42 49.5 % 0.58
Q2 2017 192.28 (18.8 %) 58.05 (26.8 %) 12.14 (63.1 %) 0.34
Q3 2017 222.02 (13.9 %) 67.68 (20.9 %) 18.79 (16.0 %) 0.53
Q4 2017 216.81 0.7 % 74.71 0.1 % 20.00 217.6 % 0.57
Q1 2018 215.72 6.0 % 61.41 (13.6 %) 16.48 (19.3 %) 0.47
Q2 2018 198.27 3.1 % 53.45 (7.9 %) 8.51 (29.9 %) 0.24
Q3 2018 223.20 0.5 % 72.07 6.5 % 19.25 2.4 % 0.54
Q4 2018 209.64 (3.3 %) 49.72 (33.4 %) (0.92) (104.6 %) (0.03)
Q1 2019 238.43 10.5 % 59.27 (3.5 %) 5.53 (66.5 %) 0.16
Q2 2019 200.24 1.0 % 51.05 (4.5 %) (3.70) (143.5 %) (0.10)
Q3 2019 221.22 (0.9 %) 56.80 (21.2 %) (3.41) (117.7 %) (0.10)
Q4 2019 239.98 14.5 % 63.89 28.5 % 3.95 530.3 % 0.11
Q1 2020 285.14 19.6 % 96.78 63.3 % 30.42 450.4 % 0.86
Q2 2020 272.39 36.0 % 97.96 91.9 % 25.93 800.7 % 0.73
Q3 2020 256.21 15.8 % 86.46 52.2 % 25.04 833.5 % 0.71
Q4 2020 241.30 0.6 % 75.93 18.8 % 19.46 393.0 % 0.55
Q1 2021 286.58 0.5 % 99.01 2.3 % 25.40 (16.5 %) 0.72
Q2 2021 268.62 (1.4 %) 88.25 (9.9 %) 26.24 1.2 % 0.74
Q3 2021 236.90 (7.5 %) 70.11 (18.9 %) 14.04 (43.9 %) 0.40
Q4 2021 299.20 24.0 % 86.85 14.4 % 18.58 (4.5 %) 0.53
Q1 2022 301.54 5.2 % 95.73 (3.3 %) 19.65 (22.6 %) 0.56
Q2 2022 238.50 (11.2 %) 64.93 (26.4 %) (1.80) (106.8 %) (0.05)
Q3 2022 229.76 (3.0 %) 43.53 (37.9 %) (22.97) (263.6 %) (0.65)
Q4 2022 254.53 (14.9 %) 66.62 (23.3 %) 8.04 (56.7 %) 0.23
Q1 2023 255.22 (15.4 %) 71.26 (25.6 %) 1.64 (91.7 %) 0.05
Q2 2023 189.69 (20.5 %) 38.10 (41.3 %) (29.76) (1,556.9 %) (0.84)
Q3 2023 211.10 (8.1 %) 29.92 (31.2 %) (42.49) (85.0 %) (1.20)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 28.72 % 15.22 % 8.75 %
Q2 2014 28.64 % 15.02 % 8.56 %
Q3 2014 29.12 % 15.36 % 8.61 %
Q4 2014 28.96 % 14.99 % 8.53 %
Q1 2015 28.94 % 15.25 % 8.58 %
Q2 2015 29.07 % 15.08 % 8.62 %
Q3 2015 30.00 % 15.59 % 9.29 %
Q4 2015 31.09 % 16.11 % 10.50 %
Q1 2016 31.90 % 16.38 % 9.22 %
Q2 2016 32.63 % 16.83 % 10.45 %
Q3 2016 32.78 % 17.17 % 9.96 %
Q4 2016 33.48 % 17.18 % 10.89 %
Q1 2017 34.01 % 17.69 % 12.76 %
Q2 2017 33.30 % 17.05 % 11.03 %
Q3 2017 32.58 % 16.56 % 11.07 %
Q4 2017 32.53 % 16.91 % 8.22 %
Q1 2018 30.92 % 16.20 % 7.64 %
Q2 2018 30.16 % 15.96 % 7.16 %
Q3 2018 30.64 % 16.17 % 7.20 %
Q4 2018 27.94 % 13.37 % 4.27 %
Q1 2019 26.97 % 12.31 % 2.90 %
Q2 2019 26.63 % 11.40 % 1.49 %
Q3 2019 24.94 % 9.38 % (1.11 %)
Q4 2019 25.67 % 10.83 % 0.39 %
Q1 2020 28.37 % 13.09 % 3.00 %
Q2 2020 30.96 % 15.45 % 5.70 %
Q3 2020 32.75 % 17.73 % 8.46 %
Q4 2020 33.85 % 18.67 % 9.73 %
Q1 2021 34.01 % 17.88 % 9.24 %
Q2 2021 33.21 % 17.45 % 9.30 %
Q3 2021 32.25 % 16.16 % 8.16 %
Q4 2021 31.54 % 15.08 % 7.47 %
Q1 2022 30.82 % 14.47 % 6.85 %
Q2 2022 29.52 % 12.25 % 4.44 %
Q3 2022 27.23 % 9.22 % 1.01 %
Q4 2022 26.44 % 8.22 % (0.55 %)
Q1 2023 25.19 % 6.64 % (2.41 %)
Q2 2023 23.62 % 4.21 % (5.55 %)
Q3 2023 22.61 % 1.98 % (8.14 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 35.36 2.41 2.41 17.08
Q2 2014 35.36 2.44 2.44 16.02
Q3 2014 35.36 2.54 2.54 16.56
Q4 2014 35.36 2.57 2.57 17.27
Q1 2015 35.36 2.63 2.63 17.78
Q2 2015 35.36 2.63 2.63 16.76
Q3 2015 35.36 2.83 2.83 17.48
Q4 2015 35.36 3.26 3.19 18.58
Q1 2016 35.36 2.91 2.78 16.74
Q2 2016 35.36 3.19 3.06 17.38
Q3 2016 35.36 3.04 2.92 18.02
Q4 2016 35.36 1.47 3.04 14.97
Q1 2017 35.36 1.66 3.30 15.58
Q2 2017 35.36 1.07 2.71 13.91
Q3 2017 35.36 0.97 2.61 14.47
Q4 2017 35.36 2.02 1.94 14.99
Q1 2018 35.36 1.91 1.83 14.30
Q2 2018 35.36 1.80 1.73 12.50
Q3 2018 35.36 1.82 1.74 13.06
Q4 2018 35.36 1.23 1.02 12.82
Q1 2019 35.36 0.92 0.71 13.04
Q2 2019 35.36 0.57 0.37 13.03
Q3 2019 35.36 (0.07) (0.27) 12.97
Q4 2019 35.36 0.07 0.10 13.06
Q1 2020 35.36 0.77 0.80 14.01
Q2 2020 35.36 1.61 1.64 13.76
Q3 2020 35.36 2.41 2.52 14.56
Q4 2020 35.36 2.85 2.90 15.09
Q1 2021 35.36 2.71 2.76 14.48
Q2 2021 35.36 2.72 2.77 15.22
Q3 2021 35.36 2.41 2.39 15.61
Q4 2021 35.36 2.38 2.31 16.12
Q1 2022 35.36 2.22 2.14 15.89
Q2 2022 35.36 1.43 1.35 13.70
Q3 2022 35.36 0.38 0.30 12.89
Q4 2022 35.36 0.08 (0.16) 12.27
Q1 2023 35.36 (0.43) (0.67) 11.56
Q2 2023 35.36 (1.22) (1.46) 10.70
Q3 2023 35.36 (1.77) (2.10) 9.50

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 29.04 29.04 4.10
Q2 2014 28.78 28.78 4.39
Q3 2014 29.88 29.88 4.58
Q4 2014 28.17 28.17 4.19
Q1 2015 26.84 26.84 3.98
Q2 2015 31.54 31.54 4.95
Q3 2015 26.03 26.03 4.21
Q4 2015 19.66 20.04 3.44
Q1 2016 19.31 20.20 3.36
Q2 2016 17.33 18.05 3.18
Q3 2016 14.13 14.75 2.39
Q4 2016 38.46 18.57 3.77
Q1 2017 28.34 14.26 3.02
Q2 2017 42.10 16.66 3.25
Q3 2017 46.40 17.27 3.11
Q4 2017 22.87 23.78 3.08
Q1 2018 27.46 28.61 3.66
Q2 2018 26.71 27.90 3.85
Q3 2018 23.77 24.82 3.31
Q4 2018 33.58 40.22 3.21
Q1 2019 43.30 55.60 3.04
Q2 2019 61.49 95.36 2.69
Q3 2019 NEG NEG 2.58
Q4 2019 More than 100 More than 100 2.69
Q1 2020 38.35 36.76 2.11
Q2 2020 33.38 32.71 3.90
Q3 2020 28.34 27.14 4.70
Q4 2020 31.35 30.80 5.92
Q1 2021 41.77 41.00 7.82
Q2 2021 37.44 36.75 6.69
Q3 2021 40.95 41.34 6.32
Q4 2021 38.15 39.42 5.64
Q1 2022 39.18 40.58 5.48
Q2 2022 46.24 48.86 4.82
Q3 2022 More than 100 More than 100 4.93
Q4 2022 More than 100 NEG 3.61
Q1 2023 NEG NEG 4.75
Q2 2023 NEG NEG 5.81
Q3 2023 NEG NEG 5.55

Business Segments (Million)

Compared With The
Period Meat products Sesame products Other products
Q1 2017 65.09 72.59 65.79
Q2 2017 65.34 57.68 69.27
Q3 2017 106.85 62.91 52.25
Q4 2017 83.09 73.40 60.33
Q1 2018 82.59 71.05 62.08
Q2 2018 73.36 60.97 63.94
Q3 2018 99.07 57.89 66.24
Q4 2018 117.41 56.08 36.15
Q1 2019 104.16 73.29 60.99
Q2 2019 77.82 50.25 72.17
Q3 2019 138.36 59.19 23.66
Q4 2019 113.50 72.82 53.66
Q1 2020 130.83 96.41 57.91
Q2 2020 119.76 98.60 54.03
Q3 2020 135.73 71.04 49.44
Q4 2020 130.10 62.84 48.37
Q1 2021 138.96 85.94 61.68
Q2 2021 151.59 66.42 50.61
Q3 2021 126.52 59.46 50.92
Q4 2021 160.03 77.83 61.35
Q1 2022 143.34 84.68 73.52
Q2 2022 119.08 71.53 47.89
Q3 2022 128.70 51.81 49.25
Q4 2022 135.04 54.73 64.76
Q1 2023 97.87 92.98 64.36
Q2 2023 86.18 62.56 40.95
Q3 2023 113.60 64.40 33.10

Analysts Estimates (Million)

Item Q3 2023 (e) Q3 2023 (a) Change‬
Average 5.00 (42.49) (949.9 %)

Estimates vs Actual (Million)

Item Q3 2023 (e) Q3 2023 (a) Change
Hermes 5.00 (42.49) (949.9) %

Current
Market Cap (M Riyal) 1,704.35
Enterprise Value (EV) (M) -
Shares Outstanding ((M)) 35.36
EPS ( Riyal) (TTM) (2.95)
Book Value (BV) ( Riyal) 6.89
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) NEG
Price/book 7.00
Return on Average Assets (%) (TTM) (11.79 )
Return on Average Equity (%) (TTM) (31.96 )

Share Price

48.20
(0.10) (0.21 %)

Halwani Bros. Co. (HB)


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