Herfy turns profit of SAR 448,200 in Q1 2024

25/04/2024 Argaam Exclusive

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Share Price

31.05
(0.40) (1.27 %)

Herfy Food Services Co. (HERFY FOODS)

Herfy Food Services Co. reported a net profit of SAR 448,200 in the first quarter of 2024, against a net loss of SAR 12.8 million in the year-earlier period.



Current Quarter Comparison (M)

Compared With The
Item Q1 2023 Q1 2024 Change‬
Revenues 275.13 289.04 5.1 %
Gross Income 54.28 72.10 32.8 %
Operating Income (8.00) 6.62 182.8 %
Net Income (12.82) 0.45 103.5 %
Average Shares 64.68 64.68 -
EPS (Riyals) (0.20) 0.01 103.5 %

The annual profit was buoyed by higher revenue, due to increased sales in the restaurant segment and sales in other segments, such as meat products and bakeries.

 

There was a decrease in general and administrative expenses (G&A), as well as Zakat charges.

 

In addition, other revenue decreased. The fast-food restaurant chain also reported an increase in selling and marketing expenses, as well as financing costs.

 

Compared to Q4 2023, net earnings dived 92% from SAR 5.63 million, hurt by lower revenue, as the restaurant segment decreased on the onset of the holy month of Ramadan.

 

On the other hand, Herfy recorded a quarterly decline in G&A and Zakat expenses.

 

Total shareholders’ equity, no minority interest, stood at SAR 1.03 billion as of March 31, 2024, compared to SAR 1.04 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2015 265.20 22.8 % 86.87 21.8 % 54.54 13.6 % 0.84
Q2 2015 259.36 14.4 % 75.02 (1.7 %) 46.27 (11.7 %) 0.72
Q3 2015 279.47 24.4 % 85.35 19.0 % 56.65 (0.1 %) 0.88
Q4 2015 272.97 12.4 % 73.55 2.1 % 45.22 (7.1 %) 0.70
Q1 2016 283.55 6.9 % 85.25 (1.9 %) 53.35 (2.2 %) 0.82
Q2 2016 277.73 7.1 % 76.77 2.3 % 49.48 7.0 % 0.77
Q3 2016 315.17 12.8 % 95.22 11.6 % 59.29 4.7 % 0.92
Q4 2016 280.23 2.7 % 90.37 22.9 % 54.95 21.5 % 0.85
Q1 2017 275.01 (3.0 %) 86.86 1.9 % 52.72 (1.2 %) 0.82
Q2 2017 272.10 (2.0 %) 75.42 (1.8 %) 43.40 (12.3 %) 0.67
Q3 2017 311.72 (1.1 %) 90.06 (5.4 %) 56.04 (5.5 %) 0.87
Q4 2017 298.96 6.7 % 89.40 (1.1 %) 47.89 (12.9 %) 0.74
Q1 2018 286.30 4.1 % 78.98 (9.1 %) 47.75 (9.4 %) 0.74
Q2 2018 286.61 5.3 % 78.73 4.4 % 45.89 5.7 % 0.71
Q3 2018 329.16 5.6 % 96.69 7.4 % 58.11 3.7 % 0.90
Q4 2018 325.20 8.8 % 90.67 1.4 % 52.43 9.5 % 0.81
Q1 2019 313.40 9.5 % 93.54 18.4 % 48.06 0.7 % 0.74
Q2 2019 309.31 7.9 % 88.10 11.9 % 40.86 (11.0 %) 0.63
Q3 2019 339.08 3.0 % 110.95 14.7 % 57.54 (1.0 %) 0.89
Q4 2019 326.52 0.4 % 100.06 10.4 % 49.64 (5.3 %) 0.77
Q1 2020 296.93 (5.3 %) 79.13 (15.4 %) 25.13 (47.7 %) 0.39
Q2 2020 170.10 (45.0 %) 15.70 (82.2 %) (34.24) (183.8 %) (0.53)
Q3 2020 311.12 (8.2 %) 92.45 (16.7 %) 41.38 (28.1 %) 0.64
Q4 2020 297.94 (8.8 %) 76.48 (23.6 %) 20.57 (58.6 %) 0.32
Q1 2021 311.12 4.8 % 82.11 3.8 % 25.47 1.3 % 0.39
Q2 2021 321.37 88.9 % 80.92 415.3 % 26.67 177.9 % 0.41
Q3 2021 352.22 13.2 % 116.30 25.8 % 60.06 45.1 % 0.93
Q4 2021 334.39 12.2 % 138.50 81.1 % 39.59 92.5 % 0.61
Q1 2022 331.00 6.4 % 96.94 18.1 % 26.72 4.9 % 0.41
Q2 2022 298.08 (7.2 %) 80.01 (1.1 %) 21.28 (20.2 %) 0.33
Q3 2022 315.57 (10.4 %) 79.06 (32.0 %) 19.86 (66.9 %) 0.31
Q4 2022 299.19 (10.5 %) 56.01 (59.6 %) (59.28) (249.7 %) (0.92)
Q1 2023 275.13 (16.9 %) 54.28 (44.0 %) (12.82) (148.0 %) (0.20)
Q2 2023 288.22 (3.3 %) 71.82 (10.2 %) 4.54 (78.7 %) 0.07
Q3 2023 313.04 (0.8 %) 83.09 5.1 % 11.04 (44.4 %) 0.17
Q4 2023 297.31 (0.6 %) 75.22 34.3 % 5.63 109.5 % 0.09
Q1 2024 289.04 5.1 % 72.10 32.8 % 0.45 103.5 % 0.01

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2015 31.99 % 27.21 % 20.65 %
Q2 2015 30.81 % 26.54 % 19.35 %
Q3 2015 30.50 % 26.96 % 19.58 %
Q4 2015 29.79 % 26.88 % 18.82 %
Q1 2016 29.14 % 26.58 % 18.39 %
Q2 2016 28.82 % 26.53 % 18.38 %
Q3 2016 28.78 % 25.92 % 18.04 %
Q4 2016 30.05 % 25.79 % 18.77 %
Q1 2017 30.42 % 25.60 % 18.85 %
Q2 2017 30.45 % 24.69 % 18.41 %
Q3 2017 30.09 % 24.32 % 18.18 %
Q4 2017 29.52 % 23.63 % 17.28 %
Q1 2018 28.56 % 23.12 % 16.69 %
Q2 2018 28.49 % 23.18 % 16.69 %
Q3 2018 28.63 % 23.20 % 16.62 %
Q4 2018 28.12 % 23.44 % 16.64 %
Q1 2019 28.67 % 23.34 % 16.30 %
Q2 2019 28.89 % 25.98 % 15.44 %
Q3 2019 29.78 % 28.24 % 15.28 %
Q4 2019 30.48 % 29.97 % 14.60 %
Q1 2020 29.74 % 30.77 % 13.23 %
Q2 2020 27.00 % 27.43 % 8.77 %
Q3 2020 26.01 % 25.71 % 7.26 %
Q4 2020 24.51 % 24.27 % 5.86 %
Q1 2021 24.46 % 23.58 % 5.54 %
Q2 2021 26.74 % 24.51 % 9.45 %
Q3 2021 27.74 % 25.35 % 10.84 %
Q4 2021 31.68 % 26.51 % 11.51 %
Q1 2022 32.31 % 26.42 % 11.43 %
Q2 2022 32.82 % 26.55 % 11.22 %
Q3 2022 30.84 % 24.37 % 8.40 %
Q4 2022 25.09 % 16.21 % 0.69 %
Q1 2023 22.67 % 13.35 % (2.61 %)
Q2 2023 22.17 % 12.53 % (4.05 %)
Q3 2023 22.56 % 11.93 % (4.81 %)
Q4 2023 24.23 % 17.47 % 0.71 %
Q1 2024 25.45 % 18.41 % 1.82 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2015 64.68 3.28 3.06 11.32
Q2 2015 64.68 3.19 2.97 10.87
Q3 2015 64.68 3.19 3.17 10.67
Q4 2015 64.68 3.13 3.13 11.37
Q1 2016 64.68 3.12 3.12 12.04
Q2 2016 64.68 3.16 3.16 11.71
Q3 2016 64.68 3.21 3.21 11.55
Q4 2016 64.68 3.36 3.36 12.41
Q1 2017 64.68 3.35 3.35 13.23
Q2 2017 64.68 3.25 3.25 12.80
Q3 2017 64.68 3.20 3.20 12.66
Q4 2017 64.68 3.09 3.09 13.40
Q1 2018 64.68 3.02 3.02 14.14
Q2 2018 64.68 3.05 3.05 13.72
Q3 2018 64.68 3.09 3.09 13.62
Q4 2018 64.68 3.16 3.16 14.42
Q1 2019 64.68 3.16 3.16 15.27
Q2 2019 64.68 3.08 3.05 14.78
Q3 2019 64.68 3.08 3.04 14.67
Q4 2019 64.68 3.03 2.91 15.43
Q1 2020 64.68 2.68 2.60 15.82
Q2 2020 64.68 1.52 1.54 14.15
Q3 2020 64.68 1.27 1.24 14.79
Q4 2020 64.68 0.82 0.97 14.83
Q1 2021 64.68 0.82 0.93 15.23
Q2 2021 64.68 1.76 1.81 14.64
Q3 2021 64.68 2.05 2.15 15.57
Q4 2021 64.68 2.35 2.35 16.13
Q1 2022 64.68 2.37 2.37 16.55
Q2 2022 64.68 2.28 2.28 16.88
Q3 2022 64.68 1.66 1.66 17.11
Q4 2022 64.68 0.13 0.13 16.34
Q1 2023 64.68 (0.48) (0.48) 16.14
Q2 2023 64.68 (0.74) (0.74) 15.71
Q3 2023 64.68 (0.87) (0.87) 15.88
Q4 2023 64.68 0.13 0.13 15.98
Q1 2024 64.68 0.33 0.33 15.99

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2015 24.15 25.88 7.00
Q2 2015 26.22 28.16 7.69
Q3 2015 21.07 21.20 6.29
Q4 2015 22.93 22.93 6.32
Q1 2016 14.85 14.85 3.84
Q2 2016 17.52 17.52 4.74
Q3 2016 14.23 14.23 3.95
Q4 2016 16.69 16.69 4.51
Q1 2017 17.66 17.66 4.47
Q2 2017 17.34 17.34 4.41
Q3 2017 15.61 15.61 3.95
Q4 2017 14.92 14.92 3.44
Q1 2018 15.75 15.75 3.36
Q2 2018 15.34 15.34 3.41
Q3 2018 13.51 13.51 3.06
Q4 2018 14.45 14.45 3.16
Q1 2019 17.05 17.05 3.53
Q2 2019 18.32 18.53 3.82
Q3 2019 16.98 17.17 3.56
Q4 2019 17.71 18.46 3.48
Q1 2020 15.82 16.28 2.68
Q2 2020 29.61 29.23 3.17
Q3 2020 42.48 43.40 3.64
Q4 2020 More than 50 More than 50 4.02
Q1 2021 More than 50 More than 50 4.29
Q2 2021 36.17 35.18 4.36
Q3 2021 30.79 29.41 4.06
Q4 2021 26.59 26.59 3.87
Q1 2022 23.84 23.84 3.41
Q2 2022 18.64 18.64 2.52
Q3 2022 23.36 23.36 2.27
Q4 2022 More than 50 More than 50 2.11
Q1 2023 NEG NEG 2.03
Q2 2023 NEG NEG 2.37
Q3 2023 NEG NEG 2.07
Q4 2023 More than 50 More than 50 2.03
Q1 2024 More than 50 More than 50 2.07

Business Segments (Million)

Compared With The
Period Restaurants Meat Factory Bakeries and others Shaboura factory
Q1 2015 226.66 6.83 31.71 -
Q2 2015 221.24 7.83 30.29 -
Q3 2015 246.39 6.06 27.01 -
Q4 2015 227.95 7.80 37.23 -
Q1 2016 241.18 6.67 35.70 -
Q2 2016 239.31 6.29 32.13 -
Q3 2016 279.93 6.12 29.12 -
Q4 2016 234.31 7.48 38.43 -
Q1 2017 232.91 7.83 34.28 -
Q2 2017 235.78 6.35 29.97 -
Q3 2017 273.07 6.90 31.75 -
Q4 2017 252.38 7.63 38.95 -
Q1 2018 243.28 7.40 35.62 -
Q2 2018 249.13 7.22 30.27 -
Q3 2018 284.92 8.35 35.90 -
Q4 2018 272.24 12.55 40.41 -
Q1 2019 263.74 11.95 37.71 -
Q2 2019 269.62 9.23 30.45 -
Q3 2019 288.72 10.87 39.50 -
Q4 2019 270.01 11.76 44.79 -
Q1 2020 233.95 17.55 45.43 -
Q2 2020 105.72 27.31 37.07 -
Q3 2020 252.85 16.09 42.18 -
Q4 2020 238.88 14.41 44.64 -
Q1 2021 252.14 14.26 44.71 -
Q2 2021 270.19 11.26 39.92 -
Q3 2021 293.05 15.54 43.63 -
Q4 2021 272.38 17.39 44.62 -
Q1 2022 263.41 20.34 47.25 -
Q2 2022 237.34 17.83 42.91 -
Q3 2022 251.21 19.14 45.22 -
Q4 2022 232.01 20.60 46.58 -
Q1 2023 210.91 19.93 44.29 -
Q2 2023 222.43 21.03 44.76 -
Q3 2023 241.33 23.01 48.71 -
Q4 2023 223.53 25.27 48.51 -
Q1 2024 220.96 23.13 44.95 -

Analysts Estimates (Million)

Item Q1 2024 (e) Q1 2024 (a) Change‬
Average 3.38 0.45 (86.7 %)

Estimates vs Actual (Million)

Item Q1 2024 (e) Q1 2024 (a) Change
Goldman Sachs 4.53 0.45 (90.1) %
Sico 4.74 0.45 (90.5) %
OSOOL AND BAKHEET 6.62 0.45 (93.2) %
Hermes 8.00 0.45 (94.4) %
United Securities Company (7.00) 0.45 106.4 %

Current
Market Cap (M Riyal) 2,008.31
Enterprise Value (EV) (M) 2,003.70
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 50
P/E (TTM) More than 50
Price/book 1.94
Return on Average Assets (%) (TTM) 1.1
Return on Average Equity (%) (TTM) 2.1

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