Cairo – Mubasher: Pharos Research has reiterated their fair value (FV) on Juhayna Food Industries’ stock at EGP 12.73 per share, with an ‘Equalweight’ recommendation.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins of the leading dairy producer are expected to recover as “the spike in SG&A/Sales is temporary due to an increase in promotional spending,” according to a research note.

 Juhayna reported last week a 107% year-on-year hike in its consolidated profits for 2018, with EGP 408.24 million in profits, versus EGP 197.7 million.

Sales surged to EGP 7.12 billion last year, versus EGP 6.06 billion in the year before.

At the level of standalone business, the company’s profits logged EGP 308.2 million in profits last year from EGP 142.5 million in 2017.

Moreover, Juhayna announced that its board of directors recommended the distribution of EGP 188.2 million in cash dividends, or 20 piasters per share, for 2018 to shareholders.