Cairo – Mubasher: Pharos Research has maintained their fair value (FV) for Arabian Food Industries Co’ (Domty) stock at EGP 13.07 per share, with an ‘Overweight’ recommendation.

The company’s management decided to change its distribution strategy by not depending on a number of clients, Pharos said in a report on Wednesday.

This is expected to impact Domty’s revenues in the first half of 2019 to get back to its normal levels in H2-19, the Cairo-based research firm added.

In March, Domty reported an EGP 154.6 million in consolidated profit for the full-year 2018, versus EGP 61.52 million in 2017, including minority shareholders’ rights.

The dairy producer’s sales grew to EGP 2.58 billion last year, versus EGP 2.25 billion a year earlier.

The company’s standalone profits reached EGP 139.4 million in 2018, versus EGP 49.98 million in 2017.

Furthermore, Domty’s board of directors had proposed a cash dividend distribution of EGP 0.20 per share or EGP 56.52 million to shareholders for FY18.