Juhayna and Domty have joined a national initiative led by a renowned local media talk show host to reduce prices of select SKUs by 20-25% for a period of three months (until year-end). The initiative aims at providing support to local consumers at a time of increasing inflationary pressures by temporarily lowering prices of some food items. Part of the price reduction (we estimate c50%) will be borne by retailers. Juhayna reduced the price of 500g Bekheiro milk (lower-tier milk that represents c50% of milk volumes, sold in several sizes) to EGP3.85/pack from EGP4.75. Domty will reduce prices of some SKUs in 250g carton pack cheese (to EGP3/pack from EP4; c20-25% of revenue but sold in several flavours and variants), processed cheese and juice.   We do not expect a material impact on numbers from the news as the campaign is short-lived, and we think that the SKUs included in the promotion have a fairly small revenue contribution to the total business. However, this is coming at a time when companies are trying to raise prices to restore margins post FX-related cost pressures and showcases how challenging the process will be in the current environment; hence, margin recovery could take slightly longer than initially perceived. (Company disclosure, Hatem Alaa, Nada Amin)   Juhayna: EGP4.56 as of 05 October 2016, Rating: Buy, FV: EGP7.00 per share, MCap: USD483mn, JUFO EY / JUFO.CA Domty: EGP5.80 as of 05 October 2016, Rating: Buy, FV: EGP10.20 per share, MCap: USD185mn, DOMT EY / DOMT.CA