Corporate news [Editing]
Juhayna Food Industries [JUFO]
Target Price: EGP 32
Strong revenues are offset by declining profits due to pressure from rising raw material prices
Net revenues from January to September increased by 21% (YoY) to record EGP 22.1 bn compared to EGP 18.3 bn in the same period of the previous year. This increase is attributed to increased sales volume in the company’s core sectors, in addition to a slight increase in product selling prices. As for export sales, they recorded EGP 1.9 bn compared to EGP 3 bn in the same period of comparison, a decrease of 36% as a result of the decline in global prices for orange concentrate. The company also recorded a 34% (YoY) the decline in net profit, amounting to EGP 1.6 bn compared to EGP 2.4 bn. The company had invested EGP 2.2 bn in CAPEX to advance farming manufacturing and distribution capabilities.
Walaa Mosalam - Head of Research
WMosalam@egy.primegroup.org