Obour Land 4Q16 net profit up 119% Y-o-Y to cEGP51.9mn
Obour Land (OLFI.CA) reported 4Q16 results, with a net income of cEGP51.9mn, up 119% Y-o-Y. Revenue for the quarter came in at cEGP395.7mn, up 22% Y-o-Y, which the company attributed to a successful sales strategy, accompanied by price increases adopted during the year. Meanwhile, gross margin widened 20.5pp to 36.2%. Accordingly, gross profit was up 181% Y-o-Y to EGP143.4mn. EBITDA margin widened a tamer 9.2pp to 20.2%, with EBITDA increasing 124% to cEGP79.7mn. Earnings for FY16 recorded 76% growth to EGP162mn, while revenue for the year came in at EGP1.45bn, up 24% Y-o-Y, driven by an 11% increase in overall average price per tonne to EGP14.9k/tonne by end of FY16 and c12% growth in white cheese sales volume to 97.4k tonnes. For 2017, the company is targeting revenue growth of 25-30%, and a carton-packed white cheese local market share increase to 42% by end of FY17, and 45% by end of FY18. On the expansion front, progress is on track for its new milk, juice, mozzarella cheese, processed cheese and carton pack production lines (to bring capacity to 199ktpa), all expected to launch by end 2Q17. Obourland is targeting a market share of c6% for dairy and juice in the first two years of operations. The company’s Board of Directors has proposed an EGP0.3/share cash dividend for the year implying a dividend payout of 37% and a yield of 2.2%.
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