Herfy food’s 2014 net profit up 8% to SAR 205.8 mln

18/01/2015 Argaam Exclusive

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Herfy Food Services Company, which owns and operates Herfy fast food restaurants, reported 2014 net profit of SAR 205.8 million, an eight percent increase compared to the last year.

 

A net profit of SAR 48.7 million was reported for Q4-2014 compared to SAR 56.7 million for Q3.



Financials (M)

Item 2013 2014 Change‬
Revenues 848.70 910.14 7.2 %
Gross Income 273.15 291.40 6.7 %
Operating Income 187.80 193.62 3.1 %
Net Income 191.43 205.81 7.5 %
Average Shares 64.68 64.68 -
EPS (Riyals) 2.96 3.18 7.5 %

 

The company attributed the increase of 2014’s net profit compared to the last year to the increase of sales to SAR 910.1 million compared to SAR 848.7 million for the same period last year mainly due to the new opening of 52 restaurants during the twelve months of 2014, as well as keeping the cost of sales percentage constant during the year 2014 compared to the previous period and the increase of other income during the current year, where the company has achieved a capital gain of SAR 13 million generated from the sale of land owned by the company which has been recorded during the third quarter 2014, in addition to the decrease of zakat expense due to the surplus in zakat reserve after reconciling the company’s zakat status as of year 2013 .

 

Q4-2014’s net profit decline compared to the same period last year was attributed to the increase of cost of sales because of the increase of salaries and operational leases, the increase of selling and marketing expenses and the increase of the financial charges, which is higher than the increase of other income and the decrease of Zakat expense during the fourth quarter 2014 compared to the same period last year.

 

The net profit decline in Q4-2014 compared to the previous period (Q3-2014) was attributed to the decrease of other income during the fourth quarter 2014 compared to the third quarter of the same year, where the company has achieved a capital gain of SAR 13 million generated from the sale of land owned by the company which has been recorded during the third quarter 2014.

 

The company has opened 52 new restaurants during 2014 including 27 new restaurants opened during Q4, the positive financial impact was not reflected during Q4 as most of them opened in December 2014. It will be reflected on the sales as well as net profit for upcoming periods, the company added. 



Current Quarter Comparison (M)

Compared With The
Item Q4 2013 Q4 2014 Change‬
Revenues 218.59 242.78 11.1 %
Gross Income 73.37 72.01 (1.9 %)
Operating Income 50.85 46.97 (7.6 %)
Net Income 57.57 48.68 (15.4 %)
Average Shares 64.68 64.68 -
EPS (Riyals) 0.89 0.75 (15.4 %)


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2005 - - - - - -
Q2 2005 - - - - - -
Q3 2005 - - - - - -
Q4 2005 - - - - - -
Q1 2006 - - - - - -
Q2 2006 - - - - - -
Q3 2006 - - - - - -
Q4 2006 - - - - - -
Q1 2007 - - - - - -
Q2 2007 - - - - - -
Q3 2007 - - - - - -
Q4 2007 - - - - - -
Q1 2008 - - - - - -
Q2 2008 - - - - - -
Q3 2008 - - - - - -
Q4 2008 - - - - - -
Q1 2009 122.50 - 37.83 - 24.17 -
Q2 2009 132.10 - 45.32 - 30.76 -
Q3 2009 133.16 - 43.53 - 30.43 -
Q4 2009 129.83 - 42.63 - 28.07 -
Q1 2010 136.19 11.2 % 44.41 17.4 % 28.61 18.4 %
Q2 2010 146.75 11.1 % 49.83 10.0 % 32.02 4.1 %
Q3 2010 145.82 9.5 % 47.79 9.8 % 30.85 1.4 %
Q4 2010 151.17 16.4 % 50.87 19.3 % 32.26 15.0 %
Q1 2011 159.30 17.0 % 50.63 14.0 % 32.90 15.0 %
Q2 2011 188.42 28.4 % 61.27 23.0 % 39.66 23.9 %
Q3 2011 172.52 18.3 % 52.06 8.9 % 34.52 11.9 %
Q4 2011 188.33 24.6 % 62.29 22.4 % 41.20 27.7 %
Q1 2012 198.94 24.9 % 61.70 21.9 % 40.84 24.1 %
Q2 2012 218.32 15.9 % 70.50 15.1 % 48.28 21.7 %
Q3 2012 203.04 17.7 % 61.28 17.7 % 41.99 21.7 %
Q4 2012 221.71 17.7 % 72.88 17.0 % 49.54 20.2 %
Q1 2013 208.77 4.9 % 67.06 8.7 % 46.65 14.2 %
Q2 2013 222.81 2.1 % 72.45 2.8 % 50.57 4.7 %
Q3 2013 198.54 (2.2 %) 60.26 (1.7 %) 38.62 (8.0 %)
Q4 2013 218.59 (1.4 %) 73.37 0.7 % 50.85 2.6 %
Q1 2014 215.93 3.4 % 71.32 6.3 % 49.18 5.4 %
Q2 2014 226.72 1.8 % 76.35 5.4 % 53.30 5.4 %
Q3 2014 224.71 13.2 % 71.72 19.0 % 44.18 14.4 %
Q4 2014 242.78 11.1 % 72.01 (1.9 %) 46.97 (7.6 %)
2014 910.14 7.2 % 291.40 6.7 % 193.62 3.1 %


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2005 - - - - - -
Q2 2005 - - - - - -
Q3 2005 - - - - - -
Q4 2005 - - - - - -
Q1 2006 - - - - - -
Q2 2006 - - - - - -
Q3 2006 - - - - - -
Q4 2006 - - - - - -
Q1 2007 - - - - - -
Q2 2007 - - - - - -
Q3 2007 - - - - - -
Q4 2007 - - - - - -
Q1 2008 - - - - - -
Q2 2008 - - - - - -
Q3 2008 - - - - - -
Q4 2008 - - - - - -
Q1 2009 23.76 - 0.37 - 23.76 0.37
Q2 2009 31.35 - 0.48 - 31.35 0.48
Q3 2009 29.92 - 0.46 - 29.92 0.46
Q4 2009 29.62 - 0.46 - 29.62 0.46
Q1 2010 28.15 18.5 % 0.44 - 28.15 0.44
Q2 2010 32.61 4.0 % 0.50 - 32.61 0.50
Q3 2010 30.43 1.7 % 0.47 - 30.43 0.47
Q4 2010 33.09 11.7 % 0.51 - 33.09 0.51
Q1 2011 32.55 15.6 % 0.50 - 32.55 0.50
Q2 2011 39.36 20.7 % 0.61 - 39.36 0.61
Q3 2011 34.46 13.2 % 0.53 - 34.46 0.53
Q4 2011 40.28 21.7 % 0.62 - 40.28 0.62
Q1 2012 40.60 24.8 % 0.63 - 40.60 0.63
Q2 2012 49.31 25.3 % 0.76 - 49.31 0.76
Q3 2012 42.38 23.0 % 0.66 - 42.38 0.66
Q4 2012 48.87 21.3 % 0.76 - 48.87 0.76
Q1 2013 46.46 14.4 % 0.72 - 46.46 0.72
Q2 2013 51.22 3.9 % 0.79 - 51.22 0.79
Q3 2013 42.40 0.0 % 0.66 - 42.40 0.66
Q4 2013 57.57 17.8 % 0.89 - 51.34 0.79
Q1 2014 48.01 3.3 % 0.74 - 48.01 0.74
Q2 2014 52.40 2.3 % 0.81 - 52.40 0.81
Q3 2014 56.72 33.8 % 0.88 - 43.72 0.68
Q4 2014 48.68 (15.4 %) 0.75 - 47.47 0.73
2014 205.81 7.5 % 3.18 - 191.59 2.96

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 - - -
Q3 2006 - - -
Q4 2006 - - -
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 - - -
Q1 2008 - - -
Q2 2008 - - -
Q3 2008 - - -
Q4 2008 - - -
Q1 2009 - - -
Q2 2009 - - -
Q3 2009 - - -
Q4 2009 32.71 % 27.26 % 22.15 %
Q1 2010 33.11 % 27.66 % 22.40 %
Q2 2010 33.04 % 27.45 % 22.03 %
Q3 2010 33.06 % 27.12 % 21.63 %
Q4 2010 33.26 % 27.12 % 21.43 %
Q1 2011 33.02 % 27.11 % 21.34 %
Q2 2011 32.66 % 26.79 % 21.01 %
Q3 2011 32.00 % 26.51 % 20.77 %
Q4 2011 31.93 % 26.56 % 20.70 %
Q1 2012 31.72 % 26.37 % 20.68 %
Q2 2012 31.69 % 26.60 % 21.16 %
Q3 2012 31.63 % 26.74 % 21.34 %
Q4 2012 31.63 % 26.91 % 21.52 %
Q1 2013 31.90 % 27.49 % 21.95 %
Q2 2013 31.96 % 27.80 % 22.06 %
Q3 2013 32.01 % 27.66 % 22.18 %
Q4 2013 32.18 % 27.95 % 22.56 %
Q1 2014 32.41 % 28.02 % 22.55 %
Q2 2014 32.72 % 28.34 % 22.58 %
Q3 2014 33.05 % 28.31 % 22.06 %
Q4 2014 32.02 % 27.42 % 21.05 %
2014 32.02 % 27.42 % 21.05 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2005 - - - -
Q2 2005 - - - -
Q3 2005 - - - -
Q4 2005 - - - -
Q1 2006 - - - -
Q2 2006 - - - -
Q3 2006 - - - -
Q4 2006 - - - -
Q1 2007 - - - -
Q2 2007 - - - -
Q3 2007 - - - -
Q4 2007 - - - -
Q1 2008 - - - -
Q2 2008 - - - -
Q3 2008 - - - -
Q4 2008 - - - -
Q1 2009 64.68 - - 4.42
Q2 2009 64.68 - - 4.59
Q3 2009 64.68 - - 5.06
Q4 2009 64.68 1.77 1.77 4.90
Q1 2010 64.68 1.84 1.84 5.33
Q2 2010 64.68 1.86 1.86 5.52
Q3 2010 64.68 1.87 1.87 5.37
Q4 2010 64.68 1.92 1.92 5.88
Q1 2011 64.68 1.99 1.99 6.38
Q2 2011 64.68 2.09 2.09 6.34
Q3 2011 64.68 2.16 2.16 6.17
Q4 2011 64.68 2.27 2.27 6.80
Q1 2012 64.68 2.39 2.39 7.42
Q2 2012 64.68 2.55 2.55 7.46
Q3 2012 64.68 2.67 2.67 7.31
Q4 2012 64.68 2.80 2.80 8.06
Q1 2013 64.68 2.89 2.89 8.78
Q2 2013 64.68 2.92 2.92 8.73
Q3 2013 64.68 2.92 2.92 8.50
Q4 2013 64.68 3.06 2.96 9.29
Q1 2014 64.68 3.08 2.98 10.03
Q2 2014 64.68 3.10 3.00 9.92
Q3 2014 64.68 3.32 3.02 9.73
Q4 2014 64.68 3.18 2.96 10.48

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 - - -
Q3 2006 - - -
Q4 2006 - - -
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 - - -
Q1 2008 - - -
Q2 2008 - - -
Q3 2008 - - -
Q4 2008 - - -
Q1 2009 - - -
Q2 2009 - - -
Q3 2009 - - -
Q4 2009 - - -
Q1 2010 13.89 13.89 4.79
Q2 2010 16.32 16.32 5.50
Q3 2010 17.54 17.54 6.10
Q4 2010 17.15 17.15 5.61
Q1 2011 16.78 16.78 5.23
Q2 2011 17.34 17.34 5.73
Q3 2011 16.13 16.13 5.63
Q4 2011 17.48 17.48 5.83
Q1 2012 17.64 17.64 5.68
Q2 2012 16.12 16.12 5.50
Q3 2012 17.55 17.55 6.41
Q4 2012 17.38 17.38 6.04
Q1 2013 18.40 18.40 6.06
Q2 2013 20.78 20.78 6.95
Q3 2013 20.95 20.95 7.20
Q4 2013 18.53 19.13 6.09
Q1 2014 22.85 23.59 7.02
Q2 2014 23.25 24.00 7.26
Q3 2014 22.07 24.25 7.53
Q4 2014 21.83 23.45 6.63

Business Segments (Million)

Compared With The
Period Restaurants Meat Factory Bakeries Shaboura factory
Q1 2009 94.27 2.74 21.45 4.04
Q2 2009 102.85 3.28 22.06 3.92
Q3 2009 107.65 3.02 19.09 3.39
Q4 2009 99.25 3.71 22.54 4.33
Q1 2010 104.81 4.03 22.98 4.37
Q2 2010 115.81 4.45 23.12 3.38
Q3 2010 120.95 4.30 18.30 2.27
Q4 2010 119.57 5.56 23.02 3.02
Q1 2011 124.61 6.28 23.98 4.43
Q2 2011 152.46 5.94 26.29 3.73
Q3 2011 144.55 5.36 20.74 1.88
Q4 2011 151.15 6.80 27.33 3.06
Q1 2012 161.28 7.26 27.15 3.26
Q2 2012 177.78 6.61 29.96 3.97
Q3 2012 170.50 5.86 33.91 -
Q4 2012 187.78 7.21 26.73 -
Q1 2013 176.07 6.47 26.22 -
Q2 2013 189.39 6.62 26.81 -
Q3 2013 173.20 6.79 18.54 -
Q4 2013 185.46 8.70 24.42 -
Q1 2014 182.75 7.74 25.44 -
Q2 2014 191.16 7.68 27.88 -
Q3 2014 196.58 6.76 21.37 -
Q4 2014 204.62 7.63 30.54 -

Analysts Estimates (Million)

Item Q4 2014 (e) Q4 2014 (a) Change‬
Average 57.90 48.68 (15.9 %)

Estimates vs Actual (Million)

Item Q4 2014 (e) Q4 2014 (a) Change
OSOOL AND BAKHEET 57.90 48.68 (15.9) %

Current
Market Cap (M Riyal) 1,843.38
Enterprise Value (EV) (M) 1,838.77
Shares Outstanding ((M)) 64.68
EPS ( Riyal) (TTM) 0.33
Book Value (BV) ( Riyal) 15.99
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) More than 100
Price/book 1.78
Return on Average Assets (%) (TTM) 1.1
Return on Average Equity (%) (TTM) 2.1

Share Price

28.50
(0.10) (0.35 %)

Herfy Food Services Co. (HERFY FOODS)


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