(2014-04-30) Cairo Poultry 1Q2014 profits up 19%
Cairo Poultry (POUL) reported financial results posting a net profit of LE 48.9 m for 1Q2014. Noting that, it posted net deficit of LE 41 m for the same period of the previous year. Revenue stood at LE 568.4 m, up 1.6% y-o-y from LE 559.4 m in 1Q2013 and 12.2% q-o-q from LE 506.4 m in 4Q2013. Net profit was down 54.5% from LE 107.6 m to 4Q2013 due to recording raw material provisions which is a standard procedure at the beginning of each year to soothe the effect of commodity price fluctuations. Beltone Financial Research expected, in a recent study, company's margins to remain stable throughout the year given the relatively flat outlook on corn prices during 2014 together with the expected strengthening of the local currency. Beltone attributed the annual improvement in margins on lower corn prices which went down by c.37% y-o-y. corn purchases represent c.47% of total costs and are fully imported.