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Global Research - Bahrain
Results Update
General Trading & Food Processing Company B.S.C.
Bahrain
Facing stiff competition
August, 2007
Reuters Code:
GTFP.BH
HOLD
Listing:
Bahrain Stock Exchange
CMP:
400fils (As on August 20th, 2007)
Key Data Highlights
CMP# (fils) 400
EPS* (fils) 27.6 - General Trading and Food Processing Company
BVPS* (fils) 283.4 (TRAFCO) reported total sales of BD23.3mn in
P/E* 14.5 2006, down by 6.1% from BD24.9mn reported in
P/BV* 1.4 2005. The drop in sales is attributable to a decline
12M Avg. vol. 41,806 in the sales of fruits and vegetables division and
52 week Lo / Hi (fils) 276/400 the transfer of the basic supplying agreements to a
Source: Global Research different supplier.
#As on Aug 20th , 2007 *2007 Projected
- TRAFCO’s net profit for 2006 stood at BD1.2mn against BD1.9mn in the previous year.
The 34.5% decrease in profit was mainly attributed to the decline in sales, which resulted
in a 5.3% net profit margin in 2006 as compared to 7.7% recorded in the previous year.
- TRAFCO reported a net profit of BD1.2mn in 1H-2007, a 66.9% increase over the
Omar M. El-Quqa, CFA BD0.7mn reported in the corresponding period of last year. Net profit grew by 113% in
Executive Vice President
omar@global.com.kw 2Q-2007 as compared to the same quarter of the previous year. The growth in profit came
Phone No:(965) 2400551 Ext.104 on the back of a growth in sales which reached BD14.5mn, an increase of 32.1% from
BD10.9mn reported in 1H-2006.
Faisal Hasan, CFA
Head of Research
fhasan@global.com.kw - TRAFCO’s total assets reported YTD growth of 11.1% in 1H-2007 to reach BD30.6mn
Phone No:(965) 2400551 Ext.304
as compared to BD27.6mn recorded at the end of 2006.
Abeer Gouda
Financial Analyst - At its current market price of BD0.400 TRAFCO’s stock is trading at 20.0x its 2006
agouda@global.com.kw
Phone No:(965) 2400551 Ext.501
earnings, and 14.5x its projected 2007 earnings.
Mona Al-Mukhaizeem - The combination of the revised projections and revised cost of equity have led to a value
Assistant Financial Analyst of BD0.408 per share. Based on a forward P/E multiple of 10.7x for selected food services
mona@global.com.kw
Phone No:(965) 2400551 Ext.580 companies in the GCC and the 2007 projected EPS for the company, the peer valuation
method resulted in a fair value of BD0.297 per share. Assigning an 80% weight to the
DCF value, and a 20% weight to the relative value, the weighted average share value of
TRAFCO came out to BD0.386 per share.
- TRAFCO’s share is quoting at a premium of 3.6% to its fair value of BD0.386. Hence
we maintain our earlier “HOLD” recommendation on TRAFCO’s stock.
General Trading & Food Processing Company 1
Global Research - Bahrain Global Investment House
Recent Developments
- TRAFCO signed a memorandum of understanding with Qatar Company for Meat and
Livestock trading, Mawashi, to startup a BD0.98mn (US$2.6mn) company in Qatar.
Mawashi and TRAFCO will each own a 50% share in the new firm which will specialize
in food processing and trading in and outside Qatar.
- On Jan 1st 2007, TRAFCO increased its holding in Bahrain Water Bottling and Beverages
Company to 100% through the purchase of a 59% stake.
- During 2006, TRAFCO decided to adopt a different strategy aiming at opening up small
retail outlets in several neighborhoods and residential areas under the brand name of
Metro instead of the hypermarket concept. The first outlet was inaugurated at Budaiya and
3 more outlets are planned to be established by the end of 2007. According to TRAFCO’s
Chairman they plan to have around 10 more stores across the country and meanwhile all
the existing five branches will be shifted to the Metro brand name.
Analysis of 2006 Results
- In 2006, TRAFCO reported total sales of BD23.3mn down by 6.1% from BD24.9mn reported
in 2005. The drop in sales is attributable to a decline in the sales of fruits and vegetables
division and the transfer of the basic supplying agreements to a different supplier.
- Another major reason behind the drop in sales was the Danish products boycott which
negatively affected the performance of one of the subsidiaries during the 1st half of 2006.
However, the sales started to recover in the 2nd half of the year after the board of directors
had decided to rename the company to Awal Dairy Company instead of Bahrain Danish
Dairy Company. In addition, the recovery was supported by an intensified marketing
campaign and the increased retail activity witnessed by most GCC markets.
- Sales from imported foodstuff declined by 16.3% in 2006 to reach BD13.1mn from
BD15.6mn reported in 2005 and its contribution to total sales has decreased to 56% from
63% in 2005. While sales of dairy products increased by 12.1% in 2006, constituting 40%
of total sales, to reach BD9.3mn compared to BD8.3mn reported in 2005.
Chart 1: Revenue Segmentation
2006 2005
Others 4% Others 4%
Imported Imported Food
Dairy Food Stuff 63%
Products Stuff 56%
40%
Dairy
Products
33%
Source: TRAFCO and Global Research
2 General Trading & Food Processing Company
Global Research - Bahrain Global Investment House
- TRAFCO’s net profit for 2006 stood at BD1.2mn against BD1.9mn in the previous year.
The 34.5% decrease in profit was mainly attributed to the decline in sales, which resulted
in a 5.3% net profit margin in 2006 as compared to 7.7% recorded in the previous year.
- Selling, distribution and administrative expenses to sales ratio decreased from 18.5% in
2005 to 18% in 2006. Cost to sales ratio has increased to 79.7% in 2006 from 78.6% in
2005, accordingly the gross profit margin has decreased to 20.2% in 2006 against 21.3%
reported in the previous year.
Chart 2: Operating Efficiency
30 81%
80%
25 79%
78%
20
77%
BD mn
15 76%
75%
10
74%
73%
5
72%
0 71%
2002 2003 2004 2005 2006
Revenue Cost of Sales Cost to Revenue
Source: TRAFCO and Global Research
- At the end of 2006, TRAFCO’s total assets declined by 2.2% to reach BD27.6mn from
BD28.2mn reported in the previous year. However, the company’s total assets have
grown at a CAGR of 9.1% in the past four years.
- Return on average assets declined to 4.5% in 2006 from 6.8% in 2005. Return on average
equity also dropped to 7.0% in 2006 from 10.7% recorded in the previous year.
- In 2006, the company’s share capital increased by 12.5% to reach BD6.3mn from
BD5.7mn in 2005 on the back of issuing 6.9mn bonus shares.
Analysis of 1H-FY07 Results
- TRAFCO reported a net profit of BD1.2mn in 1H-2007, a 66.9% increase over the
BD0.7mn reported in the corresponding period of last year. Net profit grew by 113% in
2Q-2007 as compared to the same quarter of the previous year.
- The growth in profit came on the back of a growth in sales which reached BD14.5mn, an
increase of 32.1% from BD10.9mn reported in 1H-2006.
- Sales from imported food stuff, which formed 54.7% of total sales, increased by 24.7%
in 1H-2007 to reach BD7.9mn as compared to BD6.3mn reported in the corresponding
period last year. While dairy products and beverages, which contributed 42.4% to total
sales, increased by 48.7% in 1H-2007 to reach BD6.1mn from B4.1Dmn reported in the
corresponding period last year. The company recorded a gross profit margin of 22.8% in
1H-2007 as compared to 18.9% in 1H-2006.
General Trading & Food Processing Company 3
Global Research - Bahrain Global Investment House
Table 1: Income Statement 1H-2007
1H- 1H- % 2Q- 2Q- %
Amount in (BD’000) FY06 FY07 change FY06 FY07 change
Sales 10,954 14,466 32.1% 5,774 7,582 31.3%
Cost of Sales (8,889) (11,169) 25.7% (4,597) (5,834) 26.9%
Gross Profit 2,065 3,297 59.7% 1,177 1,748 48.5%
Other Income 754 857 13.7% 213 170 -20.0%
S&A Expenses (1,043) (1,231) 18.1% (573) (399) -30.3%
Personnel Cost (1,032) (1,230) 19.2% (514) (260) -49.5%
Depreciation & Amortization (138) (189) 37.1% (69) (623) 798.8%
Financial Charges (123) (175) 42.2% (65) (96) 47.1%
Profit of the Group 483 1,329 175.0% 169 541 220.5%
Minority Interest 235 (130) -155.5% 49 (78) -259.6%
Net Profit 718 1,198 66.9% 217 463 113.0%
Source: TRAFCO
- TRAFCO’s total assets have grown by 11.1% in 1H-2007 to reach BD30.6mn as compared
to BD27.6mn recorded at the end of 2006. The main reasons behind this growth were a
28.4% increase in inventories and a 33.9% increase in property, plant and equipment.
- In the first half of 2007, available for sale investments slightly increased by 3.3% from
BD10.1mn at the end of 2006 to reach BD10.5mn, constituting 34.2% of total assets.
- On the liabilities side, total debt has increased by 96.1 % during the first half of 2007
where bank overdrafts increased by 149.5% in 1H-2007 to reach BD1.6mn from BD0.6mn
reported in the corresponding period of the previous year and term loans increased by
63.2% in 1H-2007 to reach BD1.827mn from BD1.1mn reported in the corresponding
period of the previous year.
Table 2: Balance Sheet 1H-2007
Amount in (BD’000) FY05 FY06 1H-FY07 YTD
Growth
PP&E 4,057 3,774 5,053 33.9%
Available for Sale Investments 10,978 10,146 10,477 3.3%
Inventories 4,887 5,209 6,689 28.4%
Total Assets 28,204 27,580 30,651 11.1%
Term Loans 1,678 1,119 1,827 63.2%
Bank Overdrafts 913,082 651,901 1,626 -99.8%
Total Liabilities 8,871 9,527 12,113 27.1%
Total Equity And Liabilities 28,204 27,580 30,651 11.1%
Source: TRAFCO
4 General Trading & Food Processing Company
Global Research - Bahrain Global Investment House
Outlook and Valuation
- Looking at the positive outlook of retail activity in the region we believe that TRAFCO
has a potential for growth as the company has ambitious expansion plans. However, the
capital expenditure plans of the company needs to be monitored. Also, the retail sector
in the region has been growing at an annual rate of around 15% for the past few years
which has attracted regional and international players into the market resulting in higher
competition for local companies.
- At its current market price of BD0.400 TRAFCO’s stock is trading at 20.0x its 2006
earnings, and 14.5x its projected 2007 earnings.
- Besides the revised projections, we have increased the risk-free rate assumed in our
previous report from 6.45% to 6.62%. We have maintained a market risk premium of
5.75% and a beta of 1. We have increased the terminal growth rate from 3% to 3.5% due
to the positive outlook of retail activity in the region. The revised valuation parameters
have resulted in a cost of equity of 12.37%. The combination of the revised projections
and revised cost of equity have led to a value of BD0.408 per share.
- Based on a forward P/E multiple of 10.7x for selected food services companies in the
GCC and the 2007 projected EPS for the company, the peer valuation method resulted in
a fair value of BD0.297 per share. Assigning an 80% weight to the DCF value, and a 20%
weight to the relative value, the weighted average share value of TRAFCO came out to
BD0.386 per share.
- TRAFCO’s share is quoting at a premium of 3.6% to its fair value of BD0.386. Hence we
maintain our earlier “HOLD” recommendation on TRAFCO’s stock.
General Trading & Food Processing Company 5
BALANCE SHEET
TRAFCO
Amount in BD 2004 2005 2006 2007 F 2008 F 2009 F 2010 F
Bank Balances and Cash 803,940 1,147,510 833,550 1,460,539 1,127,048 1,184,774 1,341,127
Inventories 4,377,729 4,887,499 5,209,481 5,790,415 5,746,084 5,690,297 6,486,939
6
Accounts Receivable and Prepayments 5,415,863 4,952,517 5,589,822 6,339,457 7,100,192 7,996,169 8,635,863
Total Current Assets 10,597,532 10,987,526 11,632,853 13,590,412 13,973,325 14,871,240 16,463,928
Property, Plant, and Equipment 14,792,275 15,246,210 15,204,324 17,484,973 18,359,221 18,542,813 18,728,242
Less: Depreciation (10,723,316) (11,189,547) (11,430,306) (11,780,005) (12,110,471) (12,444,242) (12,781,350)
Net PPE 4,068,959 4,056,663 3,774,018 5,704,967 6,248,750 6,098,571 5,946,891
Franchise, Application and Territory Fees 38,087 38,087 38,087 38,087 38,087 38,087 38,087
Less: Amortisation (3,812) (5,718) (7,624) (9,530) (11,436) (13,342) (15,248)
Deferred Exp on Trade Mark 42,023 46,005 40,975 37,268 34,767 33,197 32,348
Less: Amortisation (9,164) (9,908) (9,012) (8,407) (8,027) (7,822)
Net Intangibles 76,298 69,210 61,530 56,813 53,011 49,915 47,365
Investments In Subsidiaries & Associates 2,028,094 2,113,228 1,966,044 2,033,109 2,089,325 2,132,018 2,158,064
Global Research - Bahrain
Other Investments 10,731,491 10,977,619 10,145,540 10,500,559 10,871,293 11,258,722 11,663,902
Total Assets 27,502,374 28,204,246 27,579,985 31,885,860 33,235,704 34,410,466 36,280,151
Current Liabilities
Accounts Payable And Accruals 3,754,081 3,757,025 5,104,617 5,848,904 5,876,677 5,690,297 6,105,354
Bank Overdrafts 925,990 913,082 651,901 1,694,943 1,830,538 1,922,065 2,018,168
Current Portion of Long Term Loan 700,339 811,728 828,995 994,794 1,044,534 1,096,760 1,151,598
Import Loans 815,140 944,631 788,804 1,538,168 1,661,221 1,794,119 1,883,825
Total Current Liabilities 6,195,550 6,426,466 7,374,317 10,076,809 10,412,970 10,503,241 11,158,945
Term Loans 1,863,694 1,677,759 1,119,472 1,903,102 2,055,351 2,219,779 2,330,768
Loan From A Subsidiary 200,000 200,000 450,000 450,000 450,000 450,000 450,000
Employees’ End of Service Benefits 488,143 567,122 583,081 623,897 655,092 687,846 722,238
Total Liabilities 8,747,387 8,871,347 9,526,870 13,053,808 13,573,412 13,860,866 14,661,951
Share Capital 5,053,641 5,559,005 6,253,880 6,253,880 6,253,880 6,253,880 6,253,880
Treasury Shares (279,225) (304,214) (366,560) (366,560) (366,560) (366,560) (366,560)
Share Premium 1,104,863 1,104,863 1,104,863 1,104,863 1,104,863 1,104,863 1,104,863
Proposed Bonus Shares 505,364 - - - - - -
Statutory Reserve 1,412,966 1,603,530 1,728,330 1,901,088 2,106,367 2,331,765 2,588,970
General Reserve 700,000 700,000 800,000 850,000 900,000 950,000 1,000,000
Retained Earnings 733,405 572,758 441,597 455,355 604,274 783,371 1,010,178
Retained Earnings Not Distributable - 127,703 127,703 127,703 127,703 127,703 127,703
Proposed Appropriations 858,822 1,748,016 1,254,360 1,541,062 1,698,597 1,849,480 2,088,039
Cumulative Changes in Fair Value 7,247,215 7,178,762 5,855,987 5,855,987 5,855,987 5,855,987 5,855,987
Shareholder’s Equity 17,337,051 18,290,423 17,200,160 17,723,378 18,285,111 18,890,488 19,663,059
Minority Interest 1,417,936 1,042,476 852,955 1,108,675 1,377,181 1,659,112 1,955,140
Total Equity & Liabilities 27,502,374 28,204,246 27,579,985 31,885,860 33,235,704 34,410,466 36,280,151
Global Investment House
General Trading & Food Processing Company
INCOME STATEMENT
TRAFCO
Amount in BD 2004 2005 2006 2007 F 2008 F 2009 F 2010F
Sales 24,509,473 24,866,972 23,344,451 27,546,452 30,852,026 33,937,229 36,652,207
Cost of Sales (18,473,991) (19,560,923) (18,625,075) (21,348,500) (23,833,190) (25,961,980) (27,855,678)
Gross Profit 6,035,482 5,306,049 4,719,376 6,197,952 7,018,836 7,975,249 8,796,530
Global Research - Bahrain
Other Income 319,234 335,647 290,328 319,361 351,297 386,427 425,069
Selling and Distribution Costs (1,804,622) (1,539,291) (1,357,573) (1,652,787) (1,851,122) (2,036,234) (2,199,132)
Administrative Expenses (970,685) (825,723) (778,852) (909,033) (1,018,117) (1,119,929) (1,209,523)
Personnel cost (2,167,892) (2,243,733) (2,063,338) (2,334,445) (2,492,954) (2,798,279) (3,096,772)
Depreciation and Amortisation (277,933) (274,768) (275,880) (350,709) (331,767) (335,297) (338,809)
General Trading & Food Processing Company
Profit from Operations 1,133,584 758,181 534,061 1,270,338 1,676,173 2,071,937 2,377,362
Financial Charges (129,148) (208,237) (253,824) (334,066) (340,038) (340,592) (350,220)
Share of results of associates 299,864 157,890 17,880 181,574 190,652 200,185 210,194
Investment Income 446,097 847,395 792,088 840,045 760,991 562,936 583,195
Miscellaneous income (150) 17,141 18,155 25,407 33,523 41,439 47,547
Profit Before M.I. & Extraordinary Items 1,750,247 1,572,370 1,108,360 1,983,298 2,321,301 2,535,905 2,868,079
Extraordinary Items and Impairment - - (30,841) - - - -
Profit of the Group 1,750,247 1,572,370 1,077,519 1,983,298 2,321,301 2,535,905 2,868,079
Profit/Loss attributable to minority shareholders (66,332) 333,266 170,480 (255,720) (268,506) (281,931) (296,028)
Net Profit 1,683,915 1,905,636 1,247,999 1,727,578 2,052,795 2,253,974 2,572,051
Global Investment House
7
CASH FLOW STATEMENT
TRAFCO
Amount in BD 2004 2005 2006 2007 F 2008 F 2009 F 2010 F
Operating Activities
8
Profit for the Year 1,774,463 1,750,247 1,572,370 1,077,519 1,727,578 2,052,795 2,253,974
Adjustments for:
Provision Against Investments
Depreciation 481,480 527,902 524,611 561,060 350,709 331,767 335,297
Amortisation 1,906 1,906 1,906 1,906 - - -
Provision For Employees’ End of Service Benefits 74,883 96,555 114,072 98,839 - - -
Finance Cost 110,457 129,148 208,237 253,824 - - -
Investment Income (388,833) (446,097) (847,395) (792,088) - - -
Global Research - Bahrain
(Profit) on Sale of Plant And Equipment (5,667) (6,879) (5,290) (13,873) - - -
(Profit) on Sale of Investments - - - -
Net Loss From Investments In Associates & Subsidiaries (230,103) (299,864) (157,890) (17,880) - - -
Intangible Assets Write Off - - 9,164 9,908 - - -
Impairment - - - 30,841 - - -
Operating Profit Before Working Capital Changes 1,818,586 1,752,918 1,419,785 1,210,056 2,078,287 2,384,563 2,589,270
Decrease/Increase In Inventories (119,230) (17,415) (509,770) (321,982) (580,934) 44,331 55,787
Accounts Recievable and Prepayments (1,161,558) (324,664) 463,346 (637,305) (749,635) (760,735) (895,977)
Decrease In Unsecured Loans - - - - - - -
Accounts Payable and Accruals 530,822 410,957 2,944 1,347,592 744,287 27,773 (186,380)
Bank Loans - - - - - - -
Current Portion of Long-Term Loans - - - - 165,799 49,740 52,227
Short Term Loans - - - - 749,364 123,053 132,898
Cash From Operations 1,068,620 1,821,796 1,376,305 1,598,361 2,407,167 1,868,725 1,747,825
Charitable Donations (25,000) (25,000) (30,000) (40,000) (30,000) (30,000) (30,000)
Finance Cost Paid (110,457) (129,148) (208,237) (253,824) - - -
Directors Remuneration Paid (53,500) (69,000) (88,000) (99,000) (79,000) (79,000) (79,000)
Employees’ End of Service Benefits Paid (10,192) (8,690) (35,093) (82,880) 40,816 31,195 32,755
Net Cash From Operating Activities 869,471 1,589,958 1,014,975 1,122,657 2,338,983 1,790,920 1,671,580
Investing Activities
Purchase of Property, Plant and Equipment (1,387,416) (812,460) (517,963) (310,041) (2,280,649) (874,249) (183,592)
Global Investment House
General Trading & Food Processing Company
Proceeds From Sale of Plant & Equipment 7,174 21,831 10,938 14,658 - - -
Purchase of Intangible Assets (18,777) (18,548) (3,982) (4,134) 3,707 2,501 1,570
CASH FLOW STATEMENT - Continued
TRAFCO
Amount in BD 2004 2005 2006 2007 F 2008 F 2009 F 2010 F
Purchase of Investment In Subsidiaries (4,002) - - - (67,065) (56,216) (42,694)
Purchase of Investments (586,922) (871,656) (857,518) (748,804) (355,019) (370,735) (387,428)
Proceeds From Sale of Investments 77,280 76,512 872,355 597,598 - - -
Dividends Received From Subsidiaries and Associates 37,500 85,000 100,000 123,500 - - -
Dividend Income 334,759 389,999 475,542 505,121 - - -
Global Research - Bahrain
Interest Income 2,121 - - - - -
Net Cash (Used In) Investing Activities (1,538,283) (1,129,322) 79,372 177,898 (2,699,025) (1,298,698) (612,144)
Financing Activities
Purchase of Treasury Shares (5,555) - (24,989) (62,346) - - -
Dividends Paid (702,954) (439,095) (740,822) (814,141) (1,095,360) (1,382,062) (1,539,597)
General Trading & Food Processing Company
Loan From a Shareholder In a Subsidiary 200,000 - - - - -
Dividends Paid To Minority Shareholders - (27,000) (27,000) (30,000) - - -
Proceeds From New Term Loans - - - - - - -
Minority Shareholders Interest - - - - 255,720 268,506 281,931
Repayment of Term Loans (2,439) (89,394) (675,612) (541,020) - - -
Decrease In Unsecured Loans/ Loan From A Minority Shareholder - - - 250,000 - - -
Increase In Term Loans 509,223 1,206,779 601,063 - 783,630 152,248 164,428
Increase In Short Term Loans 634,257 (434,515) 129,491 (155,827) - - -
Net Cash (Used In) Financing Activities 432,532 416,775 (737,869) (1,353,334) (56,010) (961,308) (1,093,237)
(Decrease) Increase In Cash and Cash Equivalents (236,280) 877,411 356,478 (52,779) (416,052) (469,087) (33,801)
Cash & Cash Equivalents At The Beginning of Year (529,370) (999,461) (122,050) 234,428 181,649 (234,403) (703,490)
Cash & Cash Equivalents At End of Year (765,650) (122,050) 234,428 181,649 (234,403) (703,490) (737,291)
Cash Plus Bank Overdraft 332,050 803,940 1,147,510 833,550 1,460,539 1,127,048 1,184,774
Global Investment House
9
Global Research - Bahrain Global Investment House
FACT SHEET
TRAFCO
2004 2005 2006 2007 F 2008 F 2009 F 2010 F
PROFITABILITY ANALYSIS
- Total Asset Turnover 1.01 0.89 0.84 0.93 0.95 1.00 1.04
- Gross Profit Margin (%) 24.6% 21.3% 20.2% 22.5% 22.8% 23.5% 24.0%
- Operating Margin (%) 4.6% 3.0% 2.3% 4.6% 5.4% 6.1% 6.5%
- Net Profit Margin (%) 6.9% 7.7% 5.3% 6.3% 6.7% 6.6% 7.0%
- Return on Average Assets (%) 6.9% 6.8% 4.5% 5.8% 6.3% 6.7% 7.3%
- Return on Average Equity (%) 11.4% 10.7% 7.0% 9.9% 11.4% 12.1% 13.3%
LIQUIDITY RATIOS
- Current Ratio 1.71 1.71 1.58 1.35 1.34 1.42 1.48
- Quick Ratio 1.00 0.95 0.87 0.77 0.79 0.87 0.89
- Equity Multiplier 1.59 1.54 1.60 1.80 1.82 1.82 1.85
ACTIVITY RATIOS
- Inventory Turnover Ratio 4.4 4.2 3.7 3.9 4.1 4.5 4.6
- Days Inventory 82.5 86.4 98.9 94.0 88.3 80.4 79.8
- Receivables Turnover Ratio 4.6 4.8 4.4 4.6 4.6 4.5 4.4
- Days Receivables 79.1 76.1 82.4 79.0 79.5 81.2 82.8
- Payables Turnover Ratio 5.0 5.2 4.2 3.9 4.1 4.5 4.7
- Days Payables 72.3 70.1 86.8 93.6 89.8 81.3 77.3
GROWTH RATIOS
- Revenue 12.4% 1.5% -6.1% 18.0% 12.0% 10.0% 8.0%
- Net Profit 15.4% 13.2% -34.5% 38.4% 18.8% 9.8% 14.1%
- Asset Growth 29.5% 2.6% -2.2% 15.6% 4.2% 3.5% 5.4%
RATIOS USED FOR VALUATION
- Number of Shares In Issue 50,536,410 55,590,050 62,538,800 62,538,800 62,538,800 62,538,800 62,538,800
- Market Price Per Share (Fils) * 380 440 300 400 400 400 400
- EPS (Fils) 33.3 34.3 20.0 27.6 32.8 36.0 41.1
- Book Value Per Share (Fils) 343.1 329.0 275.0 283.4 292.4 302.1 314.4
- Dividend Payout Ratio 74.0% 79.2% 87.8% 80.0% 75.0% 75.0% 75.0%
- P/E Multiple 11.4 12.8 15.0 14.5 12.2 11.1 9.7
- P/BV Multiple 1.1 1.3 1.1 1.4 1.4 1.3 1.3
* Market price for 2007 onwards is market price as of August 20th, 2007
10 General Trading & Food Processing Company
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Company Recommendation Ticker Price Disclosure
General Trading & Food HOLD GTFP.BH 400fils 1, 10
Processing Co. B.S.C.
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