DOCSLIB.ORG

Value Built on Values

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Value Built on Values Value Built on Values Annual Report 2015 The Savola Group Annual Report 2015 The Savola Group Value Built on Values Savola has continually grown and evolved over the years, crossing many national borders and impacting millions of lives across the MENAT region. Our values have driven us forward during the good times, and protected us in lean years. We have always believed that the way we conduct business, and the core values we hold dear, are the crucial pillars of our success. From our strong financial foundations, we strive to create value for shareholders and investors, for employees and their families, and for all the communities in which we operate. Modesty Trust Righteousness Solidarity Integrity Mastery Personal Teamwork Organizational traits dynamics culture example Leniency Following Fulfilment Resolution Keenness Persistence CONTENTS Value Together Strategic Review 4 Strategic and Financial Highlights 6 Chairman’s Statement 8 Board of Directors 10 Managing Director’s Message 12 Executive Management Team 14 Strategy and Operating Model 16 Performance Review: Food investments 20 Performance Review: Retail investments 24 Our People 26 Our Community Directors’ and Governance Reports 32 Board of Directors’ Report 46 Corporate Governance Report Consolidated Financial Statements 64 Independent Auditors’ Report Building shareholder 65 Consolidated Financial Statements value as a strategic 69 Notes to the Consolidated Financial Statements 96 Contacts investment holding company 6 Chairman’s Statement 2 Responding to a Panda enters more challenging Egypt geo-economic environment in 2015 10 20 Managing Director’s Performance Review: Message Retail investments How transformation will create sustainable Savola Foods’ regional growth in value-added categories joint venture with global seafood giant 15 Food investments strategy 16 Performance Review: Food investments Value opportunities in evolving retail consumer trends 15 Retail investments strategy The Savola Group Annual Report 2015 3 STRATEGIC AND FINANCIAL HIGHLIGHTS Savola’s 2015 results reflect the challenging market environment that prevailed for most of the year, dominated by difficult economic conditions in key markets, global oversupply in sugar, and foreign exchange restrictions and fluctuations. Nevertheless, there were many encouraging aspects to the year’s performance. Branded oil products performed well and the retail sector sustained its rapid expansion, despite suppressed consumer spending. Savola was also able to successfully sell its entire shareholding in Savola Packaging Systems Company in 2015 at a sale price of SAR 910 million, and generate capital gain of SAR 265 million. Savola recorded net profit of SAR 1.792 billion for the year 2015. In line with Savola’s strategy of focusing on the core food and retail sectors, optimizing returns from the Group’s operating companies and non-managed investments, several initiatives were undertaken during the year. Savola made significant progress in the transition to become a strategic investment group, always seeking to add long-term value as we pursue sustainable growth by building on proven strengths. Savola Foods entered into a joint venture with the global seafood leader Thai Union, beginning with a regional launch of the famous John West brand. Panda Retail also began expansion into Egypt with the opening of the first Panda supermarket in Cairo. 8% Net income breakdown Operating companies 1% by sector, 2015 Savola Foods 687.6 6% SAR millions Panda Retail 146.4 38% Strategic non-managed investments Almarai 700 Herfy 99 Kinan 20 39% Other investments 139 8% Total assets breakdown Operating companies 2% 6% 1% by sector, 2015 Savola Foods 10,103 SAR millions Panda Retail 7,814 24% 37% Strategic non-managed investments Almarai 6,363 Herfy 392 Kinan 617 Other investments 1,746 29% 4 Market capitalization 2015 26,827 SAR millions 2014 42,024 2013 31,730 2012 20,000 2011 14,350 Shareholders’ equity 2015 10,550 SAR millions 2014 9,966 2013 9,651 2012 8,287 2011 7,722 Total assets 2015 27,034 SAR millions 2014 26,402 2013 24,763 2012 23,342 2011 20,101 Net income 2015 1,792 SAR millions 2014 2,072 2013 1,704 2012 1,402 2011 1,202 The Savola Group Annual Report 2015 5 CHAIRMAN’S STATEMENT Focused on core sectors It gives me great pleasure, on behalf of the Board of At the heart of our strategic direction is the principle of Directors, to present the Savola Group’s 2015 annual leveraging our strengths in food and retail. As custodian of report. The Group’s achievements, accomplishments, the strategy, the holding company will evaluate territories and overall performance, and that of its subsidiaries and for potential expansion and their investment environment, sectors, are detailed in the following pages. The report shaping and driving the strategic decision-making. In also outlines the Group’s strategic direction and details addition, the holding company is responsible for oversight, financial aspects and indicators, corporate governance in light of corporate governance mechanisms approved by practices, related disclosures, corporate social the Board of Directors. responsibility programs, and human resources. Although sustained growth is integral to our strategy, In years to come, 2015 will be remembered as a landmark whether by product category or geography, mergers or year for Savola, even if the financial results did not reach the acquisitions, our core policy is to concentrate on adding impressive levels so typical of our company over its 37-year value. Every decision is evaluated against that criterion. history since establishment in 1979. At operating company level, Savola Foods is looking to The year’s significance lies in earlier strategic decisions and leverage on its brands’ strength and distribution capabilities the progress made in our transition to becoming a strategic to gradually move away from dependence on commodities investment holding company. Although this shift has been to higher-value categories and branded products. in process for some time, 2015 marked a major step towards The Group, through Panda Retail, is maintaining its leading realizing our ambition. In accordance with that direction, the position in the retail sector, depending on broad local and Board of Directors and executive management continued their regional spread, serving the widest range of consumers, efforts to implement this strategic investment holding company and providing its services through different types of stores. model. This is through implementing and applying strategy Panda Retail continues to expand. and growth management policies, as well as being responsible for the operating companies’ results in performance and As execution of our strategy gathers momentum, we are decision-making, in light of Group strategy, level of authority, confident that Savola has the skills and resources to take and corporate governance guidelines that govern the us into a new era of growth and opportunity at both the relationship between the Group and its operating companies. Group and operating company levels. We have competent management and employees, very sound underlying Our strategic non-managed investments, such as Almarai financials, and a strong corporate culture. and Herfy, will continue to make a valuable contribution to Group profitability and Savola will look to add value through Turning to our 2015 results, net profit totaled SAR 1.79 billion, its representation on the boards of directors of these entities. compared to SAR 2.07 billion a year earlier, a decline mainly attributable to the challenging market conditions detailed in this report. 6 The year’s significance lies in earlier strategic decisions and the progress made in our transition to becoming a strategic investment holding company. A dividend distribution of SAR 266.99 million is recommended by the Board of Directors for the fourth quarter of 2015, bringing the year’s total dividend to SAR 1,067 million, representing 20% of the company’s nominal share value. The Group maintained its dividend declaration policy, distributing 50-60% of its net profit, taking the distribution amount of the past five years close to the paid-up capital. Therefore, the Group will continue its distribution policy (pay-out ratio from the net profit), taking into consideration the Board’s priority to use available cash-flow to support the Group’s long-term growth objectives. On behalf of the Board of Directors, I take this opportunity to communicate our utmost gratitude and appreciation to our Government for their ceaseless effort to provide their people with welfare and security – as well as its continued support and care for private sector companies. I extend my sincere appreciation to Savola’s shareholders for their support during 2015, and acknowledge the dedication and efforts of our executive management and employees throughout the year. We look forward to continued excellence and success, and ask Allah to guide us. Sulaiman A. Al Muhaidib Chairman The Savola Group Annual Report 2015 7 BOARD OF DIRECTORS Sulaiman A. Al Muhaidib 1 Chairman Abdullah M. N. Rehaimi 2 Group CEO and Managing Director Ibrahim M. Al Issa 3 Member Amin M. Shakir * 4 Member Bader A. Al Issa 5 Member 1 2 3 * Resigned from the Board 4 5 on 11 February, 2016 8 Abdulaziz K. Al Ghufaily 6 Member Abdul Kareem A. Abu Alnasar 7 Member Essam A. Al Muhaidib 8 Member Omar Hadir N. Al-Farisi 9 Member Fahad A. Al Kassim10 Member Mohammad A. Al Fadl11 Member 6 7 8 9 10 11 The Savola Group Annual Report 2015 9 MANAGING DIRECTOR’S MESSAGE Building on our foundations The year witnessed a number of significant economic Having withstood the turmoil of the past few years, despite challenges, locally, regionally, and internationally. fluctuations and unstable circumstances, we are well Nevertheless the Group achieved respectable results, positioned to capitalize on the significant opportunities. In despite the decrease in net income compared to last line with Group strategy, Savola Foods is also entering new year. Group and Sector performance was generally product categories.
Load more

Recommended publications
  • Daily Report
    28 February 2021 Daily Report Major Economic News Saudi Stock Exchange • GAZT approved the draft rules of Zakat calculation for estimated tax, Daily Index Closing High Low YTD % replacing the rules issued earlier. The new rules will be applied to the Change% returns of taxpayers calculated by GAZT after February 28, 2021. The TASI 9,195 9,263 9,161 0.9 5.8 base of Zakat payers, subject to these rules, will be evaluated by the NomuC 26,884 27,005 26,429 1.3 2.4 equation: (Sales /8 + [Sales × 15%]) and not less than capital set forth in the commercial registration. (Source: Argaam) TASI movement during session TASI P/E Ratios 9,280 8.0 P/E (Tadawul) 29.3 • The value of KSA’s oil exports reached around SAR 46.4bn in December, 9,150 6.0 P/E (Bloomberg) 35.9 down 30% Y/Y. Oil exports reached SAR 64.8bn, accounting for 71.6% of 9,120 4.0 P/E* 43.5 the total exports for the month, hitting its highest level in 10 months. On Millons P/E after exclusions* 41.9 9,190 2.0 M/M basis, oil exports saw an increase of SAR 8.8bn. (Source: Argaam) P/E ex. loss-making comp.* 24.7 9,160 0.0 P/E: top 50 MCAP* 30.2 Major Corporate News 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM Volume Mn (RHS) TASI (LHS) *Source: Argaam (Excluding Aramco) • Saudi Cable Co.’s board of directors recommended increasing the Daily company’s capital through rights issue of SAR 360mn.
    [Show full text]
  • The Savola Group: a Different Kind of a Saudi Arabian Oil Company
    THE SAVOLA GROUP: A DIFFERENT KIND OF A SAUDI ARABIAN OIL COMPANY A CORPORATE GOVERNANCE CASE STUDY DEVELOPED FOR THE SAAFAH TRANSPARENCY AWARD 2016 GOVERN, The Economic and Corporate Governance Center October 2016 Copyright GOVERN. All rights reserved. 1 TABLE OF CONTENTS Company history ....................................................................................................................... 3 Corporate origins .................................................................................................................... 3 Novel approach ....................................................................................................................... 3 Expansion ambitions ............................................................................................................... 4 Divestment and consolidation ................................................................................................. 5 Organisation and ownership .................................................................................................... 6 Current corporate structure ..................................................................................................... 6 Ownership structure ................................................................................................................ 6 Market performance ................................................................................................................ 7 Corporate governance .............................................................................................................
    [Show full text]
  • GCC F&B Sector Report
    The GCC F&B Sector An Enticing Opportunity April 2017 GCC F&B Sector Report © ARDENT Advisory 1 GCC F&B Sector Report © ARDENT Advisory 2 Table of Contents Foreword 4 Key Takeaways 5 F&B Market Overview 7 GCC F&B Market Size 8 Average Spend on Food Service Categories 9 Investment Thesis 11 Demand Drivers 11 Key Risk Factors 14 M&A and PE Deals 16 Trends in F&B Sector in the GCC 19 Country Profiles 23 United Arab Emirates 23 Saudi Arabia 28 Qatar 31 Oman 34 Kuwait 36 Bahrain 38 Major F&B Players in the GCC 41 Kuwait Food Company 41 Kout Food Group 42 Herfy Food Service Company 43 GCC F&B Sector Report © ARDENT Advisory 3 Foreword When thinking about the most lavish and exotic Among all the GCC economies, the UAE’s F&B Food and Beverage (F&B) markets in the world, market expanded the fastest during 2010–2015, at one name that comes to the mind is the GCC. This a CAGR of 12%; this was closely followed by Saudi region has built a strong brand identity in the F&B Arabia and Qatar at 9.9% and 7.4%, respectively. In space, which has benefited its food service market Saudi Arabia, an increasing population is one of the and strengthened its foothold in the F&B industry major drivers of huge demand for food and in recent years. beverages, especially in the fast food and cafe segments. The rising number of tourists from the The F&B sector is also one of the major US and Europe is also fuelling the demand for beneficiaries of the GCC governments’ economic western casual dining concepts.
    [Show full text]
  • HERFY FOOD SERVICE CO. the Ordinary General Assembly
    HERFY FOOD SERVICE CO. The Ordinary General Assembly Meeting Date: 25 April 2021 شركة هرفي للخدمات الغذائية )شركة مساهمة ( HERFY FOOD SERVICES CO. ( C.J.S. ) The agenda of the Ordinary General Assembly for Herfy Food Services Company (first meeting) 25/04/2021 1. Voting on the Auditor's report for the fiscal year ended on 31/12/2020G. 2. Voting on the company's financial statements for the fiscal year ended on 31/12/2020 G. 3. Voting on the Board of Directors' report for the fiscal year ended on 31/12/2020G. 4. Voting on the appointment and determining fees of the external auditor for the Company from among nominees, on the recommendation of the Audit Committee to examine, review and audit the Company’s financial statements for the second, third and annual of fiscal year 2021G and first quarter of fiscal year 2022. 5. Voting on the Board of Directors recommendation to distribute cash dividends for the year 2020 total amount 64.680 million riyals at the rate of 1 riyal per share, which represents 10% of the per value of the share with a total Shareholders of 64.680 million shareholders, provided the eligibility for dividend will be to Shareholders who own the shares on the day of Company’s general assembly and registered in the company’s shareholders register at Securities Depository Center by the end of the second trading day following the day of general assembly date of dividend distribution will be announced later (attached). 6. Voting on discharging the members of the Board of Directors from liability for the fiscal year ended on 31/12/2020G.
    [Show full text]
  • PRE-MARKET REPORT 30 May 2021
    PRE-MARKET REPORT 30 May 2021 HEADLINES MARKET INDICATORS GCC CORPORATE NEWS, ANNOUNCEMENTS & DISCLOSURES • Al Anwar Investment has signed a non-binding MoU along with Maha Ceramics and Al Hael Ceramics to explore the possibility of acquiring majority of existing shares of Al Hael • Dhofar International Development & Investment Holding to increase capital by OMR 28.6mn • Saudi companies spent $47bn on capital expenditure in 2020 • Twelve Saudi insurance firms provide COVID-19 coverage for tourists, visitors • Herfy Food Services Co. Announces an update on the announcement of signing an MOU with Eat Rite Food Services Company to grant commercial franchise rights to Herfy restaurants in Nigeria • ADX to list Emirates Stallions Group on Second Market • NMC's administrators set for new round of hearings in dispute with Dubai Islamic Bank • Dlala Holding Disclose of the collection of a sum of money • The Group Securities Will Start Liquidity Provision Activity For Doha Bank • Bahrain banks to offer loan repayments delay option ECONOMIC, GENERAL & COMMODITIES NEWS • Oman Labour Ministry Sets Date for Implementing New Fees of Non-Omani Labour Permit • Oman to unveil 50 investment opportunities in industrial sector • Qatar’s policy response to COVID-19, conservative budget to support recovery • Saudi pledges $100m funding for tourism community initiative • Services made record contribution to Saudi economy in 2020 • Saudi Arabia to resume entertainment activities for those who received COVID-19 vaccine • Pent-up demand, shortages fuel U.S. inflation • White House $6 trillion budget • A big jobs report looms in the week ahead, as markets enter the often-weak month of June • Brent ends at two-year high as demand outlook counters supply fears • Gold retakes $1,900/oz level after U.S.
    [Show full text]
  • A Case Study About Accelerating Expansion of Restaurants Industry in Saudi Arabia
    Business Management and Strategy ISSN 2157-6068 2018, Vol. 9, No. 1 A Case Study About Accelerating Expansion of Restaurants Industry in Saudi Arabia Maroua M. Bouznif (Corresponding author) College of Business Administration, King Saud University, P.O. Box: 51049, Riyadh 11543, Saudi Arabia E-mail: [email protected] Jawahir AlMudbel College of Business Administration, King Saud University, Riyadh, Saudi Arabia E-mail: [email protected] Shadden Almarshed College of Business Administration, King Saud University, Riyadh, Saudi Arabia E-mail: [email protected] Ibtissem Mohamed Ben Ajmi Institut des Hautes Etudes Commerciales (IHEC) - Cartage University. Tunis, Tunisia E-mail: [email protected] Received: May 11, 2018 Accepted: May 25, 2018 Published: June 14, 2018 doi:10.5296/bms.v9i1.13283 URL: https://doi.org/10.5296/bms.v9i1.13283 Abstract Restaurants have recently witnessed a fast growth in Saudi Arabia. Though this growth considers being relatively recent, it is widely observed by everyone. This case study illustrates the progress of restaurants in Saudi Arabia, factors influencing restaurants www.macrothink.org/bms 173 Business Management and Strategy ISSN 2157-6068 2018, Vol. 9, No. 1 expansion, some strategic and tactical issues in managing restaurants, restaurants classification. Besides, it describes the key players’ restaurants, presents some new trends and challenges attached to their growth and finally where the restaurants are heading to. Keywords: Case study, Saudi Arabia, Restaurants, Cafe, Managing restaurants, Restaurant expansion www.macrothink.org/bms 174 Business Management and Strategy ISSN 2157-6068 2018, Vol. 9, No. 1 1. Introduction The culture of eating out at the restaurants in Saudi Arabia is still relatively new.
    [Show full text]
  • 2011 Annual En.Pdf
    Highlights at a Glance: SAR 8 Billion SAR 1.1 Billion SAR 1.9 Billion SAR 6.8 Billion SAR 23 Billion SAR 4.95 SAR 15.7 Billion Sales up by 15% Net Income Cash flow from operations Equity Market Capitalization EPS Total Assets Jordan Kuwait Almarai facilities: Saudi Arabia, UAE, Oman, Kuwait, Qatar, Bahrain. Bahrain Presence through joint ventures: Egypt and Jordan. Egypt Qatar Saudi Arabia UAE Oman Annual Report 2011 | 3 Table of contents Chairman’s Statement 5 Mission, Vision & Values 7 Company Overview 9 Board of Directors Report 11 Board of Directors Profile 12 Our Brands 14 Our People 23 Corporate Social Responsibilities 25 Detailed Review of Principal Activities for 2011 28 Operating Costs 32 Share of Results of Associates and Joint Ventures 34 Statutory Payments 35 Net Income 36 Cash Flows 36 Distribution Policy 41 Board Meetings and Directors Disclosure 42 Senior Management Disclosure 43 Related Party Transactions 45 Segmental Reporting and Geographical Analysis 46 Subsidiaries 48 Risk Management 49 Corporate Governance 49 Audit and Risk Committee 49 Nomination and Remuneration Committee 51 Key Financial Highlights of the Last Five Years - Results, Assets, Liabilities and Key Indicators 52 General Assembly Meeting 53 Certification 53 Auditors’ Report 55 4 | Annual Report 2011 Annual Report 2011 | 5 Chairman’s Statement Another year of record operating results and continued commitment to long term investment strategy - despite the significant challenges faced. Dear Shareholders, In addition to Almarai’s capital expenditure programme, we continued to invest in local On behalf of the Board of Directors, I am delighted to be able to present Almarai’s Annual talent with the company a proud employer of over 4,100 Saudi nationals.
    [Show full text]
  • Herfy Food Services Co
    06 November 2019 Herfy Food Services Co. Initiation of Coverage Report Since inception, Herfy grew to be the largest Saudi fast food brand, surpassing McDonald’s in terms of geographical presence in the Kingdom. We are bullish on Herfy on the grounds of expected rise in tourism in the Kingdom, its strong online ordering platform, and cost advantages. Recommendation: NEUTRAL Reuters Code 6002.SE Current Price (05-11-2019): SAR 50.7 Target Price (52 Weeks): SAR 54.7 Bloomberg Code HERFY: AB Upside/ (Downside): 7.9% Sharia Compliance: Pass 52 Weeks High SAR59.7 Key Points 52 Weeks Low SAR38.0 We initiate our coverage for Herfy with a NEUTRAL recommendation and 52 weeks target price at 54.7; which represents an upside potential of 7.9%. Market Cap SAR3.3bn • Herfy Food Services Co. (Herfy) is the strongest local rival to McDonald’s in Saudi Arabia. With the geographical presence of P/E 16.5 375 restaurants, Herfy grew to be the largest and most successful Saudi fast-food brand in the Kingdom. The company offers fully integrated food services with the operation of its fast-food EPS SAR3.1 restaurants, as well as the sale of bakery and meat products. Last Dividends SAR1.0 • Herfy reported decent Y-o-Y revenue growth of 6.6% during the nine months ending September 2019, which is higher than its 3- year historical average of 4.5%. However, on Quarterly basis, AVG Value Traded SAR3.40mn Herfy reported sluggish revenue growth of 3.0% in Q3 2019, likely impacted by slower than average restaurants expansion.
    [Show full text]
  • Sustainability Report 2019 Download
    Sustainability Report 2019 Leading a Sustainable Future Welcome to Savola Group’s 2019 Sustainability Report This Sustainability Report is the sixth Sustainability Report for Savola. It covers the sustainability approach, priorities, activities, performance and achievements of its operating companies within the Kingdom of Saudi Arabia, including Panda, Retail Company, Afia International Company, United Sugar Company, International Food Industries (IFI) and the Group’s Headquarters (HQ). This year we present a more detailed analysis of our Materiality process and the alignment with the newly published Saudi National Standards for Sustainability Reporting. The report covers the period between January 1, 2019 and December 31, 2019. A detailed overview of the scope of this report and coverage can be found on page 92. 4 SAVOLA Table of Contents 01 07 10 How we add Value 6 Business 34 Environment 70 Responsible Governance Energy and Management 36 Consumption 72 Organizational Culture Waste Management 75 and Values 42 Water Consumption 76 02 Responsible Key Highlights 8 Management & Ethics 43 Effective Risk Management 45 11 Sector 78 03 Certifications, Savola at a Glance 10 Memberships and 08 Associations 80 Community 48 Customer Satisfaction 82 Community Makeen Program 84 04 Initiatives and Investments 50 Health, Nutrition Savola Group CEO Food Waste and Packaging 88 Statement 12 Management 53 Supply Chain and Negaderha Procurement 89 Program 54 05 Savola World Executive 12 Director of Sustainability About this Report 92 14 09 Statement Employees 56 GRI Content Index 93 A Unique Culture 58 Training and Development 64 06 Health and Safety 66 Sustainability Strategy 16 Diversity and Savola World 18 Inclusion 68 Alignment with Global and National Initiatives 19 Stakeholders 24 How we add Value As a leading Saudi retail and food company, we work continuously to create exceptional and lasting value for our stakeholders through our secure, reliable and transparent operations.
    [Show full text]
  • 2018 Food Processing Ingredients Saudi Arabia
    THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 3/29/2018 GAIN Report Number: SA1804 Saudi Arabia Food Processing Ingredients 2018 Approved By: Alan Hallman, U.S. Embassy, Riyadh Prepared By: Hussein Mousa, U.S. Embassy, Riyadh Report Highlights: The Saudi food processing sector has been rapidly growing due to government support of food processers, rising per capita income, and major demographic and socio-economic changes. These factors have supported an increase in the number of Saudi food processing companies, from 691 firms in 2005 to 938 firms in 2016. Investment in this sector increased by approximately 11% per year from 2007 to 2016, and reached $23 billion in 2016. Attractive investment conditions have lured some multinational corporations to establish production facilities in Saudi Arabia. Most Saudi food manufacturers depend on imports to secure their needs of food ingredients and raw materials. In 2016, Saudi Arabia imported about $2.345 billion worth of food ingredients for further processing. U.S. suppliers provided about 6 percent of these food processing products. Saudi Arabia exports a significant part of its processed food production, estimated at $1.22 billion in 2016, sharp decrease compared to approximately three billion exported in 2015. SECTION I. MARKET SUMMARY The Saudi food manufacturing and processing sector has rapidly grown in the past ten years. Support from the Saudi Government includes direct subsidies for selected food production equipment, low land leasing prices, long term interest free loans, duty free imports of raw materials, and highly subsided utilities.
    [Show full text]
  • Herfy It's Getting Better
    Herfy Food Services Agriculture & Food sector HERFY AB: Saudi Arabia 26 June 2010 US$0.54bn 51.1% US$2.600mn Market cap Free float Avg. daily volume Target price 89.60 21.9% over current Research Department Consensus price n/a Khalid Alruwaigh Current price 73.50 as at 23/06/2010 Tel 966 1 211 9310, [email protected] Underweight Neutral Overweight Herfy Key themes It’s getting better We believe that the fast food industry will continue to grow strongly. Herfy has a very strong position in the Herfy is the only fast food chain company that is listed in the Saudi food & fast food market. It’s currently the second just agriculture sector. The company has grown decently during the last couple of behindd McDonalds. We believe that Herfy’s strategy to open 20 to 25 restaurants coupled with years. The aggressive expansion strategy of opening around 20-25 new increasing bakery and meats divisins production restaurants each year coupled with increasing production capacity of bakery capacity will allow the company to grow strongly. and meats divisions should drive the company’s growth over the next three Implications years. Therefore, we are initiating coverage of Herfy with an Overweight rating and a target price of SAR89.6. This implies upside potential of 21.9%. Herfy is one of our preferred stocks in the agriculture & food sector. It is performing well operationally and offers growth in the near term at a reasonable Market. We believe that the young (50% below 20) and rapidly growing valuation. We believe Herfy’s handsome dividends population play a vital role in stimulating the fast food market.
    [Show full text]
  • Economic News
    ECONOMIC NEWS Value Previous % GCC 28-Feb-2021 Closing Change Stocks in Asia-Pacific traded higher on Monday, as data releases showed China’s manufacturing activity growth slowing in February. In Japan, the Nikkei 225 rose 2.18%, MSM 3,612.38 3,601.80 0.29% as the index attempted to recover from its nearly 4% plunge on Friday. The Topix index gained 1.64%. Mainland Chinese stocks were higher, as the Shanghai composite gained Dubai 2,551.54 2,527.48 0.95% 0.52% while the Shenzhen component jumped 1.605%. Hong Kong’s Hang Seng Abu Dhabi 5,663.62 5,627.99 0.63% index advanced 1.2%. Shares of CNOOC listed in the city, however, dropped more than 3%. That came after the New York Stock Exchange announced Friday that it will Saudi Arabia 9,144.99 9,194.92 -0.54% commence delisting proceedings against CNOOC following an update to an executive Bahrain 1,466.43 1,464.63 0.12% order signed by former U.S. President Donald Trump in November. Stocks in Australia edged higher as the S&P/ASX 200 gained 1.71%. MSCI’s broadest index of Asia-Pacific Qatar 10,145.99 10,120.67 0.25% shares outside Japan rose 1.03%. South Korea’s markets are closed on Monday for a Kuwait 5,649.16 5,656.84 -0.14% holiday. (CNBC) Egypt 11,525.02 11,617.91 -0.80% Oil prices rose more than $1 on Monday on optimism in the global economy thanks to 3,427.12 3,437.50 -0.30% progress in a huge U.S.
    [Show full text]