Profits of listed agro food firms down 29% to SR1.98bn in H1

Profits of the listed food and agro firms dropped by 29 percent to SR1.98 billion in the first half of the current year compared to SR2.47 billion in H1, 2015, according to a financial report.
Likewise, net profits of the sector dropped by 6 percent in Q2, 2016 to SR1.24 billion compared to SR1.32 billion in Q2, 2015, but grew by 69 percent compared to profits of Q1, 2016, which stood at SR736 million, the report said.
The number of listed food and agro firms stands at 16 with their market capitalization at SR84 billion, or 6 percent of the Saudi market value.
Capitals of the food sector reached SR19 billion. Almarai Company captured the biggest portion of the sector’s capital at 42 percent, or SR8 billion, followed by the Savola Group at 28 percent, or SR5.33 billion. Bisha Agricultural Development Company has the least capital at SR50 million..
Almarai Company captured 47 percent of the sector’s profits in H1, 2016, or SR937.3 million compared to SR837 million in H1, 2015, an increase of 12 percent. This led to the increase of earning per share (EPS) to SR1.13 compared to SR1.02, the report compiled by Al-Hayat said.
The company attributed the profit growth to the increase of sales by 11.8 percent in all operation sectors.
The Savola Group was the second biggest profit maker by capturing 17 percent of the sector’s total profits at SR340 million compared to SR905 million in H1, 2015, or a decrease of 62 percent and, accordingly, EPS dropped to SR0.64 compared to SR1.69, the report said.
Ranking the third biggest profit driver of the sector, Saudi Arabian Airlines Catering Company posted SR287 million in H1, 2016, compared to SR343 million in H1, 2015, or a decrease of 16.47 percent. Likewise, the company’s EPS dropped to SR3.5 compared to SR4.19. 
The company attributed profit decline to the increase of staff costs in the form of increase of salaries and rental costs, among others, the report said.
Meanwhile, Herfy Company posted net profits of SR103 million in H1, 2016, compared to SR101 in H1, 2015, or an increase of 2.46 percent.
The company attributed its profit growth to the increase in sales that jumped to SR561.3 million compared to SR524.6 million in the same period last year, the report said.
Halawani Brothers has its profits dropped by 8 percent to SR45.2 million in H1, 2016, compared to SR49 million in H1, 2015, the report said.
The company’s Q2 profits reached SR31.3 million compared to SR23.1 million in Q2, 2015, an increase of 36 percent, compared to SR13.9 million in Q1, 2016, an increase of 125 percent, the report said.
Key losers of the food industry sector were Saudi Fishery Company, which incurred losses worth SR18.8 million whereas losses of Bisha Agricultural Development Company, Sharqiyah Development Company, and Tabuk Agricultural Development Company stood at SR488,000, SR3.76 million and SR7.85 million, respectively, the report said.

Source: Arab News