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JUHAYNA FOOD INDUSTRIES
September 14, 2012
Chart 8: Juhayna Market Share in the Juice Sector
Source: Juhayna, ASIB
Table 2: Summary of Financials
Revenues
EGP million
INITIATION OF COVERAGE EQUITY RESEARCH
2008 2009 2010 2011 H1 12
Dairy 918 907 1,037 1,135 644
Yoghurt 262 364 402 614 346
Juice 264 287 384 421 240
Concentrate 18 20 39 45 17
Agriculture 0 0 0 29 20
Total 1462 1578 1861 2244 1267
% of Total Revenues Dairy 63% 57% 56% 51% 51%
Yoghurt 18% 23% 22% 27% 27%
Juice 18% 18% 21% 19% 19%
Concentrate 1% 1% 2% 2% 1%
Agriculture 0% 0% 0% 1% 2%
Gross Margin Dairy 8.0% 16.4% 16.2% 13.8% 27.0%
Source: Juhayna, ASIB
Yoghurt 22.4% 38.1% 36.8% 34.6% 35.0%
Juice 34.3% 33.7% 32.2% 27.0% 29.0%
Concentrate -5.1% -18.9% -16.3% 14.6% 21.0%
Agriculture NA NA NA 34.6% 8.0%
Total 20.0% 32.5% 31.3% 28.3% 28.2%
Despite that dairy revenues are increasing, its contribution to total revenues is dropping while
yoghurt contribution is increasing for 4 main reasons:
1 Overall demand for yoghurt in Egypt is expected to increase at a faster pace than that of dairy
in the coming few years.
1 The conversion rate to packaged products is higher for the yoghurt than that of milk. As such,
Juhayna has a greater ability to pass the increase in raw material costs to end consumers in the
yoghurt products than that in the dairy products, as the price difference between loose and
packaged products is smaller for yoghurt than that of milk. Average price for dairy products
increased by 4% between Q1 11 and Q1 12, while it increased by 10% for yoghurt products,
despite the higher competition in this sector.
1 Gross margin of the Yoghurt segment is much higher than that of dairy.
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