JUHAYNA FOOD INDUSTRIES S.A.E. Juhayna Releases Third Quarter 2015 Earnings
THIRD QUARTER 2015
EGP 1,135 mn
▲13% Y-o-Y
EGP 416 mn
▲ 61% Y-o-Y
EGP 180 mn
▲ 61% Y-o-Y
EGP 88 mn
▲ 64% Y-o-Y
EGP 579 mn
▲15% Y-o-Y
YOGURTEGP 296 mn
▲ 1% Y-o-Y
JUICEEGP 241 mn
▲ 36% Y-o-Y
CONCENTRATESEGP 13 mn
▼ 33% Y-o-Y
AGRICULTUREEGP 6 mn
▼ 52% Y-o-Y
NINE MONTHS 2015
EGP 3,103 mn
▲12% Y-o-Y
EGP 1,088 mn
▲ 48% Y-o-Y
EGP 471 mn
▲ 80% Y-o-Y
EGP 219 mn
▲ 60% Y-o-Y
EGP 1,595 mn
▲15% Y-o-Y
YOGURTEGP 813 mn
▲ 8% Y-o-Y
JUICEEGP 587 mn
▲ 15% Y-o-Y
CONCENTRATESEGP 55 mn
▼ 17% Y-o-Y
AGRICULTUREEGP 54 mn
▲ 8% Y-o-Y
(Cairo, Egypt) - Juhayna Food Industries (JUFO.CA on the Egyptian Exchange), a leading Egyptian dairy, yogurt and juice manufacturer, announced today its consolidated results for the third quarter of 2015, reporting a 13% year-on-year rise in total consolidated revenue to EGP 1,135 million. Gross Profit saw a significant improvement of 61% to EGP 416 million compared to EGP 259 million in the same period last year. The jump in gross profit comes primarily on the back of stable raw material prices, which saw profit margin significantly improve by 11 percentage points to 37%, and eight percentage points to 35% in 3Q15 and 9M15, respectively. On a nine month basis, Juhayna reported a 12% increase in total consolidated revenue to EGP 3,103 million in 9M15 with net income standing at EGP 219 million, an impressive 60% y-o-y increase compared to 9M14. The improvement in bottom-line is owing to a lower effective income tax rate, and comes despite the company booking a non-recurring deferred tax of EGP 68 million.
Contributors to revenues continue to be weighed toward the dairy and yogurt segments at 51% and 26%, respectively, of consolidated revenues in 9M15. Meanwhile, Juhayna's juice segment posted the strongest year-on-year growth in 3Q15 with segment revenues climbing 36% to EGP 241 million driven by the launch on the new Premium product line.
Highlights of Juhayna's financial and operational results along with management's commentary on performance in the quarter follow below. It is also worth noting that given the prevailing market conditions, and drawn from the fact that Juhayna operates in a highly competitive environment, management believes that it is in the best interest of shareholders to limit the disclosure of detailed segment analysis information. Juhayna's full financials are available for download on the company's website: www.juhayna.com.
3Q 2015 - EARNINGS RELEASE
GROUP CONSOLIDATED PERFORMANCE1,008
1,135
3Q14 vs. 3Q15 TO OUR SHAREHOLDERSOur performance during the third quarter of 2015 once again confirms the soundness of the group's strategy, and gives reason for optimism about the market's performance going forward. This quarter Juhayna recorded strong year-on-year growth in sales, which trickled down to our bottom-line having booked an impressive 64% year-on-year growth.
We remain committed to our expansion plans having spent some EGP 219 million during the nine month period, directed primarily at our dairy farms - where the procured high quality German Holstein cows have already started production - in addition to improving operational efficiency of the group's commercial and industrial activities.
Juhayna has also secured three medium-term loans totaling EGP 480 million to help enhance the group's working capital position, finance the ongoing operational expansion, as well as refinance existing debt.
We will continue to work tirelessly to provide our customers with a wide range of products that cater to the different needs of the market, all while maximizing shareholders' value.
Safwan Thabet, Chairman & CEO
REVENUE BREAKDOWN259
416
Sales Gross Profit
160
232
112
180
54
88
EBITDA EBIT Net Profit
3Q14 3Q15
2% 1%
1% 1%
9M14 vs. 9M1518%
29%
3Q14
50%
21%
26%
3Q15
2,770
3,103
51%
2% 2%
2% 2%
735
1,088
421
628
261
471
137
219
19%
19%
27%
9M14
50%
26%
9M15
51%
Sales Gross Profit
EBITDA EBIT Net Profit
9M14 9M15
Dairy Yogurt Juices Concentrates Agriculture
3Q 2015 - EARNINGS RELEASE
-
CONSOLIDATED INCOME STATEMENT
(EGP '000)
3Q15
3Q14
9M15
9M14
Net Sales
1,135,592
1,007,832
3,103,041
2,770,017
Cost of Sales
(719,502)
(748,602)
(2,015,519)
(2,035,158)
Gross Profit
416,090
259,230
1,087,522
734,859
Gross Profit Margin
37%
26%
35%
27%
Other Income
5,753
6,133
15,458
16,321
Sales & Distribution Expenses
(174,036)
(109,732)
(466,763)
(353,935)
General & Administrative Expenses
(36,951)
(39,724)
(106,602)
(101,246)
Other (Expenses)
(30,701)
(3,038)
(48,759)
(14,175)
Board of Directors Remuneration
(95)
(70)
(645)
(720)
Results from Operating Activities
180,060
112,798
480,211
281,105
EBITDA
231,743
159,654
628,454
420,546
EBITDA Margin
20%
16%
20%
15%
Parent Company's Share in Associate's Net Income
-
1,480
-
2,887
End of Service Remuneration
(152)
(708)
(9,654)
(19,737)
Financing Expenses
(45,373)
(42,732)
(126,477)
(91,610)
Net Profit Before Tax
134,536
70,838
344,080
172,644
Tax Differences from Previous Periods
1
-
231
601
Income Tax
(16,711)
(15,187)
(53,914)
(32,229)
Investment Tax Revenues
-
(4,099)
-
-
Deferred Tax
(29,591)
(1,882)
(67,687)
(4,244)
Net Profit
88,235
53,769
218,611
136,773
3Q 2015 - EARNINGS RELEASE
-
CONSOLIDATED BALANCE SHEET
(EGP '000)
9M15
FY14
Property, Plant and Equipment
2,752,435
2,094,365
Projects Under Construction
383,534
1,067,146
Agricultural Resources
13,707
26,422
Animal Wealth
18,123
-
Investment in Equity - Accounted Investees
50,929
50,929
Other Long Term Debit Balances
776
782
Goodwill
97,093
97,093
Non-current Assets
3,316,597
3,336,738
Inventories
579,455
557,524
Trade and Other Receivables
200,452
199,811
Due From Related Parties
-
816
Cash and Cash Equivalents
612,365
420,114
Current Assets
1,392,272
1,178,264
Provisions
11,671
8,571
Banks - Overdraft
22,200
17,198
Banks - Credit Facilities
715,943
742,348
Short Term Loans
-
16,000
Creditors and Other Credit Balances
313,062
272,772
Income Tax
-
50,481
Long-Term Loans - Current Portions
211,268
254,163
These Investments are Financed as Follows:
Issued and Paid up Capital
941,405
941,405
Legal Reserve
451,205
435,554
General Reserve - Insurance Premium
330,920
330,920
Retained Earnings
418,830
414,263
Net Profit for the Period after Periodic Dividends
218,543
161,551
Total Equity Attributed to the Shareholders of the Parent Company
2,360,904
2,283,693
Non-Controlling Interest
762
762
Total Equity
2,361,666
2,284,455
Long Term Loans
844,269
705,696
Other Long Term Liabilities
69,643
85,003
Deferred Revenues
16,623
3,477
Deferred Tax Liabilities
142,525
74,837
Current Liabilities
1,274,144
1,361,533
Working Capital
118,128
(183,269)
Total Invested Funds
3,434,725
3,153,468
Non-Current Liabilities
1,073,059 869,013
Shareholder's Equity and Non-Current Liabilities
3,434,725 3,153,468
3Q 2015 - EARNINGS RELEASE
- CONSOLIDATED CASH FLOW
3Q 2015 - EARNINGS RELEASE
ABOUT JUHAYNA FOOD INDUSTRIES
Juhayna Food Industries a leading producer and distributor of milk, juice and yogurt products. The company was established in 1983 by Safwan Thabet along with a number of other founders with paid-in capital of EGP 1.3 million. Production began in 1987 with a total production capacity of 35 tons per day and total sales of EGP 2.4 million. The company has since grown to become the most popular household name in the sector across Egypt. Today, Juhayna owns seven plants in addition to 28 sales and distribution centers and a fleet size of over 1000 vans and trucks. The company presently has paid-in capital of EGP 941 million and a work force of more than 4,000 employees.
CONTACTS
Fadwa Hossam Issa
Head of Investor Relations Fadwa.issa@juhayna.com
Khaled Yasser Daader
Assistant Team Leader Investor Relations Khaled.daader@juhayna.com
Tel: +20 (0)2 3828 6417
Fax: +20 (0)2 3828 6567
FORWARD-LOOKING STATEMENTS
Statements contained in this Business Review that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Juhayna Food Industries. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained herein constitutes 'targets' or 'forward-looking statements,' which can be identified by the use of forward-looking terminology such as 'may,' 'will,' 'seek,' 'should,' 'expect,' 'anticipate,' 'project,' 'estimate,' 'intend,' 'continue' or 'believe' or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of Juhayna Food Industries may differ materially from those reflected or contemplated in such targets or forward- looking statements. The performance of Juhayna Food Industries is subject to risks and uncertainties.
3Q 2015 - EARNINGS RELEASE
(EGP '000) | 9M15 | 9M14 |
Cash Flows from Operating Activities | ||
Net Profit for the Period Before Income Tax & Minority Interest in Profits | 344,080 | 172,644 |
Adjustments for: | ||
Fixed Assets' Depreciation | 150,870 | 138,179 |
Capital Gains (Losses) | (2,639) | (1,624) |
Impairment in Fixed Assets | 13,215 | 41 |
Change in Equity Accounted Investments | - | (2,414) |
Impairment in Trade & Other Receivables | 2,018 | - |
Impairment in Inventories | 12,866 | 4,295 |
Provisions for Claims Filed | 7,968 | - |
Financial Lease Installments | 9,096 | 9,076 |
Credit Interests | (8,455) | (8,353) |
Finance Interests & Expenses | 144,810 | 111,348 |
673,828 | 423,192 | |
Collected Deposits Interests | 8,384 | 8,353 |
Paid Finance Interests & Expenses | (137,291) | (106,158) |
Change in: | ||
Inventories | (34,797) | 8,649 |
Trade & Other Receivables | 1,984 | (22,586) |
Due from Related Parties | 816 | 346 |
Change in Creditors & Other Credit Balances | (78,989) | (74,705) |
Dividend Paid to Employees | (22,336) | (30,406) |
Provisions for Claims Used | (4,868) | (1,445) |
Net Cash Flows from Operating Activities | 406,731 | 205,241 |
Cash Flow from Investing Activities | ||
Acquisition of Fixed Assets & Projects Under Construction | (203,323) | (442,786) |
Proceeds from Sale of Fixed Assets | 67,420 | 3,195 |
Proceeds from Acquisition of Animal Wealth | (18,173) | (7,408) |
Net Cash Flows (Used In) Investing Activities | (154,076) | (447,000) |
Cash Flow from Financing Activities | ||
Proceeds from Bank Credit Facilities | (26,405) | (11,833) |
Proceeds from Bank Loans | 79,678 | 117,507 |
Proceeds for Lease Installments-Sale with the Right of Release | (9,076) | (9,076) |
Dividend Paid to Shareholders | (109,536) | - |
Increase/Decrease in Minority Interest | (68) | 135 |
Net Cash Flows from Financing Activities | (65,406) | 96,733 |
Increase (Decrease) in Cash & Cash Equivalents during the Period | 187,249 | (145,026) |
Cash & Cash Equivalents as at 1 January | 402,916 | 553,374 |
Cash & Cash Equivalents as at 30 September | 590,165 | 408,348 |
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