Financial Accounting & Reporting 

 
Dr. Amr Abdel Aziz Youssef 

Juhayna Financial Analysis 

 
 

Prepared By​: 
 
-Nader Elkordy. 
-Rahaf Osama. 
-Khalid Hassan. 
-Abdelrahman Khalid. 
-Moustafa Yehia. 
-Ahmed Hamed Mahmoud. 
 
 
 
 
 
 

 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Report Topics: 

· Executive Summary 
· Introduction 
· Data Collection 
· Significant Financial Events 
· Analysis & Details Results 
· Conclusion 

Executive Summary: 

The purpose of this report is to do Financial Analysis for Juhayna Company in financial years 
(2015,2016,2017,2018) and share the financial analysis results with analysis conclusions to the company in 
order to be used as external documents with stockholders and shareholders. 

  

 
Introduction: 
 
Background: 
 
Juhayna Food Industries is a leading Egypt-based manufacturer specialized in the production, processing 
and packaging of dairy, juice, and cooking products. 

Since its founding in 1983, it has secured a frontrunner position in the dairy and juice industries in Egypt 
and has expanded its presence in the Middle East, a feat made possible through its firm commitment to 
delivering a wide range of high-quality, healthy, and safe products that have become trusted household 
names. 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Journey: 
Founded by Safwan Thabet, Juhayna Food Industries was built on a vision to introduce the market to a new 
business model for food production that holds innovation at its core. 

Today, with four fully operational facilities, a vast network of distribution centers serving more than 
136,000 retail outlets nationwide, and a 5000-feddan, fully-owned dairy farm that has the capacity to 
house 7,000 milking cows covering a sizeable portion of the company’s raw milk needs, Juhayna continues 
to raise the benchmark for premium quality Egyptian manufactured products. 

Tetra Pak: 
In partnership with Tetra Pak, Juhayna continues to engage in an ongoing public awareness campaign that 
highlights the hazards of loose milk in an effort to promote healthy living and improve public health 
standards. 
The campaign has been successful in significantly reducing the percentage of consumers who opt for loose 
milk in Egypt. While the consumption of loose milk has dropped by nearly half over the years, there is still 
need for a continued effort to spread awareness; a cause that Juhayna remains committed to pursuing. 

 
R&D: 

 
Our use of quality ingredients, internally manufactured concentrates, and state-of-the-art technologies for 
processing and packaging, alongside heavy investments in R&D to enhance our product offerings, aid in 
fulfilling our vision of bringing high quality, nutritious products to our customers. 

Having achieved notable success in our Egyptian and Middle Eastern markets, we are pursuing new growth 
opportunities with exports to East and West Africa. 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

   

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

 
Market Share and Key Players 

 
 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Managers

 
Shareholders   

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Juhayna Financial Analysis 

 
- The report objective is to do financial analysis for Juhayna Company in financial years 
(2015,2016,2017,2018) based on Financial statements were issued by the company in mentioned 
financial years (Balance Sheet, Income Statement, Cash Flow Statement). 
 
- Also share the detailed analysis results covering Financial analysis ratio’s (Test of Profitability, 
Test of Activity, Test of Solvency, Test of Liquidity, Market Test) were applied on financial data 
mentioned in financial statements in financial years (2015,2016,2017,2018). And share analysis 
conclusion covering The company projecting future performance on the basis of past years’ 
performance.   
 
Data Collection  
 

The Financials analyses done based provided financial statements (Balance Sheet, Income 
Statement, Cash Flow Statement) for Juhayna company in Financial years (2015,2016,2017,2018) 

  

The following details financial Statements were used in the analysis report: 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

1. Balance Sheet: 

Juhayna Food
Industries  
       

Annual Balance Sheet   

       

   
       

12/31/201 12/31/201 12/31/201 12/31/201 12/31/201

Period Ended  8  7  6  5  4 

Year  2018  2017  2016  2015  2014 

In millions of EGP 

(except for per share items) 

Cash  27.85  28.83  28.07  71.37  43.6 

Cash & Equivalents  2.56  56.9  101.52  723.55  376.51 

Cash and Short Term Investments  30.4  85.74  129.59  794.92  420.11 

Accounts Receivable - Trade, Gross  192.53  185  119.25  73.04  80.65 

Provision for Doubtful Accounts  -11.53  -10.54  -10.62  -8.57  -16.63 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Accounts Receivable - Trade, Net  181  177.21  125.58  66.49  66.32 

Notes Receivable - Short Term  0.49  30.7  10.26  14.91  31.33 

Receivables - Other  252.62  173.57  183.69  90.48  80.22 

Total Receivables, Net  434.12  381.47  319.54  171.88  177.87 

Inventories - Finished Goods  224.79  323.03  344.29  235.82  215.3 

Inventories - Work In Progress  --  --  --  --  0 

Inventories - Raw Materials  556.83  332.7  595.79  164.57  192.12 

Inventories - Other  308.48  192.82  403.07  206.5  150.1 

Total Inventory  1,090.10  848.55  1,343.16  606.88  557.52 

Prepaid Expenses  53.27  36.93  33.48  16.13  17.7 

Restricted Cash - Current  --  --  --  --  5.05 

Discountinued Operations -  17.39  --  0  50.93  -- 

Current Asset 

Other Current Assets, Total  17.39  --  0  50.93  5.05 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

                 

Total Current Assets  1,625.27  1,352.69  1,825.77  1,640.73  1,178.26 

  

Buildings - Gross  1,531.80  1,533.43  1,279.03  1,156.95  753.15 

Land / Improvements - Gross  171.04  172.11  213.68  209.23  199.6 

Machinery / Equipment - Gross  2,826.74  2,778.64  2,607.76  2,253.07  1,825.51 

Construction in Progress - Gross  192.17  94.87  383.21  430.87  1,067.15 

Natural Resources - Gross  189.2  141.26  105.32  54.37  26.42 

Other Property / Plant /  140.2  131.15  111.44  85.37  77.84 

Equipment - Gross 

Property / Plant / Equipment, Total  5,051.15  4,851.45  4,700.45  4,189.85  3,949.66 

- Gross 

Accumulated Depreciation, Total  -1,643.77  -1,398.56  -1,145.67  -943.34  -761.73 

Property / Plant / Equipment, Total  3,407.38  3,452.89  3,554.78  3,246.51  3,187.93 

- Net 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Goodwill, Net  97.09  97.09  97.09  97.09  97.09 

LT Investment - Affiliate  8.58  7.19  7.09  10.15  50.93 

Companies 

Long Term Investments  8.58  7.19  7.09  10.15  50.93 

Note Receivable - Long Term  7.44  8.63  9.82  --  -- 

Other Long Term Assets  0.75  0.76  0.77  0.77  0.78 

Other Long Term Assets, Total  0.75  0.76  0.77  0.77  0.78 

Total Fixed Assets  3,521.23  3,566.56  3,669.54  3,354.53  3,336.74 

Total Assets  5,146.50  4,919.25  5,495.31  4,995.26  4,515.00 

  

Accounts Payable  343.47  416.47  399.77  197.6  140.4 

Accrued Expenses  80.31  92.11  128.2  68.14  66.59 

Notes Payable / Short Term Debt  734.62  546.39  1,075.27  671.35  779.63 

Current Portion of Long Term Debt  255.53  315.48  290.75  247.35  254.16 
/ Capital Leases 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Dividends Payable  0.03  F  0.06  0  0.01 

Customer Advances  34.51  20.42  17.99  6.61  5 

Income Taxes Payable  87.73  52.73  73.84  92.92  77.22 

Other Payables  32.95  28.37  41.24  23.05  29.96 

Other Current Liabilities  16.39  8.3  9.43  11.96  8.57 

Other Current liabilities, Total  171.61  109.82  142.55  134.54  120.76 

                 

Total Current Liabilities  1,585.54  1,480.27  2,036.54  1,318.98  1,361.53 

  

Long Term Debt  609.85  765.39  803.79  1,013.34  705.7 

Total Long Term Debt  609.85  765.39  803.79  1,013.34  705.7 

Total Debt  1,600.01  1,627.26  2,169.81  1,932.04  1,739.48 

Deferred Income Tax – Long Term  241.91  231.72  206.67  154.6  74.84 
Liability 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Deferred Income Tax  241.91  231.72  206.67  154.6  74.84 

Minority Interest  0.98  0.86  0.76  0.82  0.76 

Other Long Term Liabilities  99.28  124.79  156.14  85.4  88.48 

Other Liabilities, Total  99.28  124.79  156.14  85.4  88.48 

                 

Total Liabilities  2,537.57  2,603.03  3,203.91  2,573.14  2,231.31 

  

Common Stock  941.41  941.41  941.41  941.41  941.41 

Common Stock, Total  941.41  941.41  941.41  941.41  941.41 

Additional Paid-In Capital  330.92  330.92  330.92  330.92  330.92 

Retained Earnings (Accumulated  1,336.61  1,043.90  1,019.08  1,149.80  1,011.37 

Deficit) 

                 

Total Equity  2,608.93  2,316.22  2,291.40  2,422.13  2,283.69 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

  

                 

Total Liabilities & Shareholders'  5,146.50  4,919.25  5,495.31  4,995.26  4,515.00 

Equity 

  

Shares Outstanding - Common  941.41  941.41  941.41  941.41  941.41 

Stock Primary Issue 

                 

Total Common Shares Outstanding  941.41  941.41  941.41  941.41  941.41 

  

Treasury Shares - Common Stock  0  0  0  0  0 

Primary Issue 

Deferred Revenue - Current  34.51  20.42  17.99  6.61  5 

Deferred Revenue - Long Term  79.87  94.16  108.44  15.56  3.48 

Total Current Assets less Inventory  535.18  504.14  482.61  1,033.86  620.74 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Quick Ratio  0.34  0.34  0.24  0.78  0.46 

Current Ratio  1.03  0.91  0.9  1.24  0.87 

Net Debt  1,570.58  1,542.38  2,040.98  1,137.94  1,320.13 

Tangible Book Value  2,511.84  2,219.13  2,194.31  2,325.03  2,186.60 

Tangible Book Value per Share  2.67  2.36  2.33  2.47  2.32 

2. Income Statement: 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Juhayna Food
Industries
         

Annual Income Statement 

         

Period Ended  12/31/2018  12/31/2017  12/31/2016  12/31/2015  12/31/2014 

Year  2018  2017  2016  2015  2014 

In millions of EGP 

(except for per share items) 

Net Sales  7,122.31  6,064.77  4,992.86  4,231.16  3,684.06 

Revenue  7,122.31  6,064.77  4,992.86  4,231.16  3,684.06 

                 

Total Revenue  7,122.31  6,064.77  4,992.86  4,231.16  3,684.06 

  

Cost of Revenue  5,017.31  4,258.50  3,538.39  2,749.36  2,693.05 

Cost of Revenue, Total  5,017.31  4,258.50  3,538.39  2,749.36  2,693.05 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

                 

Gross Profit  2,105.00  1,806.27  1,454.47  1,481.80  991.01 

  

Selling / General /  437.75  356.95  304.79  708.75  524.71 

Administrative Expense 

Labor & Related Expense  355.34  323.8  291.8  89.76  81.65 

Advertising Expense  443.42  453.83  382.53  --  -- 

Selling / General /  1,236.51  1,134.58  979.12  798.5  606.36 

Administrative Expenses, 
Total 

Depreciation  75.92  75.66  68.6  13.72  14.25 

Depreciation / Amortization  75.92  75.66  68.6  13.72  14.25 

Impairment-Assets Held for  12.83  9.97  0  13.22  0.04 

Use 

Impairment-Assets Held for  0  4.45  6.08  4.06  2.46 

Sale 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Loss(Gain) on Sale of Assets  -32.6  -33.59  22.4  -6.96  -2.25 

- Operating 

Unusual Expense (Income)  -19.77  -19.17  28.48  10.31  0.25 

Other Operating Expense  46.75  6.63  10.09  38.76  20.94 

Other, Net  -53.4  -54.34  -84.89  -15.12  -21.67 

Other Operating Expenses,  -6.65  -47.71  -74.8  23.64  -0.73 

Total 

                 

Total Operating Expense  6,303.32  5,401.85  4,539.79  3,595.53  3,313.18 

  

                 

Operating Income  818.98  662.92  453.06  635.63  370.88 

  

Interest Income -  14.4  4.74  16.56  14.26  11.92 

Non-Operating 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Investment Income -  -327.38  -376.83  -316.06  -188.83  -134.95 

Non-Operating 

Interest / Investment  -312.98  -372.08  -299.5  -174.56  -123.03 

Income, Non-Operating 

Interest Income (Expense),  -312.98  -372.08  -299.5  -174.56  -123.03 

Net-Non-Operating, Total 

Other Non-Operating Income  -12.39  -38.7  -4.82  -10.67  -20 

(Expense) 

Other, Net  -12.39  -38.7  -4.82  -10.67  -20 

                 

Net Income Before Taxes  493.61  252.13  148.75  450.4  227.85 

                 

Provision for Income Taxes  85.36  54.4  95.1  170.47  57.76 

                 

Net Income After Taxes  408.25  197.73  53.65  279.93  170.09 

  

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Minority Interest  -0.37  -0.25  -0.13  -0.1  -0.13 

                 

Net Income Before  407.88  197.48  53.52  279.83  169.96 

Extraordinary Items 

  

                 

Net Income  407.88  197.48  53.52  279.83  169.96 

  

                 

Income Available to  407.88  197.48  53.52  279.83  169.96 

Common Excluding 
Extraordinary Items 

  

                 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Income Available to  407.88  197.48  53.52  279.83  169.96 

Common Stocks Including 
Extraordinary Items 

  

Basic Weighted Average  941.41  941.41  941.41  941.41  941.41 

Shares 

Basic EPS Excluding  0.43  0.21  0.06  0.3  0.18 

Extraordinary Items 

Basic EPS Including  0.43  0.21  0.06  0.3  0.18 

Extraordinary Items 

                 

Diluted Net Income  407.88  197.48  53.52  279.83  169.96 

  

Diluted Weighted Average  941.41  941.41  941.41  941.41  941.41 

Shares 

Diluted EPS Excluding  0.43  0.21  0.06  0.3  0.18 

Extraordinary Items 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Diluted EPS Including  0.43  0.21  0.06  0.3  0.18 

Extraordinary Items 

DPS - Common Stock  0.2  0.1  0.15  0.15  0.1 

Primary Issue 

Total Special Items  -19.77  -19.17  28.48  10.31  0.25 

                 

Normalized Income Before  473.84  232.96  177.23  460.71  228.1 

Taxes 

  

Effect of Special Items on  -3.42  -4.14  9.97  3.9  0.06 

Income Taxes 

Income Taxes Excluding  81.94  50.26  105.07  174.37  57.83 

Impact of Special Items 

                 

Normalized Income After  391.9  182.7  72.17  286.34  170.28 

Taxes 

  

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

                 

Normalized Income Available  391.53  182.45  72.03  286.24  170.15 

to Common 

  

Basic Normalized EPS  0.42  0.19  0.08  0.3  0.18 

Diluted Normalized EPS  0.42  0.19  0.08  0.3  0.18 

Depreciation, Supplemental  289.4  275.76  241.15  204.95  186.99 

Rental Expense,  72.85  74.44  62.49  8.78  9.01 

Supplemental 

Advertising Expense,  443.42  453.83  382.53  --  -- 

Supplemental 

Equity in Affiliates,  1.38  0.11  -3.06  0  3.74 

Supplemental 

Minority Interest,  -0.37  -0.25  -0.13  -0.1  -0.13 

Supplemental 

Gross Margin  29.56  29.78  29.13  35.02  26.9 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Operating Margin  11.5  10.93  9.07  15.02  10.07 

Pretax Margin  6.93  4.16  2.98  10.64  6.18 

Effective Tax Rate  17.29  21.58  63.93  37.85  25.35 

Net Profit Margin  5.73  3.26  1.07  6.61  4.61 

Normalized EBIT  799.21  643.75  481.55  645.94  371.13 

Normalized EBITDA  1,088.61  919.51  722.69  850.89  558.12 

Current Tax - Total  51.14  14.56  36.8  72.34  50.48 

Current Tax - Total  51.14  14.56  36.8  72.34  50.48 

Deferred Tax - Total  10.19  25.05  52.07  79.76  7.88 

Deferred Tax - Total  10.19  25.05  52.07  79.76  7.88 

Other Tax  24.03  14.79  6.22  18.36  -0.6 

Income Tax - Total  85.36  54.4  95.1  170.47  57.76 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

3. Cash Flow Statement: 

Juhayna Food
Industries          

Annual Cash Flow Statement 

         

Period Ended  12/31/2018  12/31/2017  12/31/2016  12/31/2015  12/31/2014 

Year  2018  2017  2016  2015  2014 

In millions of EGP 

(except for per share items) 

Net Income / Starting Line  493.61  252.13  148.75  450.4  227.85 

Depreciation  289.4  275.76  241.15  204.95  186.99 

Depreciation / Depletion  289.4  275.76  241.15  204.95  186.99 

Unusual Items  -15.2  -15.65  -9.68  10.85  -3.02 

Equity in Net Earnings (Loss)  -1.38  -0.11  -7.09  --  -- 

Other Non-Cash Items  282.46  370.05  220.66  232.31  157.44 

Non-Cash Items  265.88  354.28  203.89  243.16  154.41 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Accounts Receivable  -68.58  -61.37  -177.04  10.66  -4.11 

Inventories  -236.24  487.75  -752.08  -61.79  54.36 

Other Assets  -6.04  11.73  15.74  -0.43  -- 

Accounts Payable  -2.04  -11.35  14.18  --  -- 

Payable / Accrued  -82.43  -86.41  203.36  -38.32  -42.52 

Other Liabilities  --  --  --  --  0 

Other Operating Cash Flow  -382.33  -394.43  -301.05  -209.46  -171.03 

Changes in Working Capital  -777.67  -54.08  -996.88  -299.34  -163.29 

                 

Cash from Operating  271.22  828.1  -403.09  599.16  405.96 

Activities 

  

Purchase of Fixed Assets  -258.98  -192.42  -551.27  -388.02  -673.57 

Capital Expenditures  -258.98  -192.42  -551.27  -388.02  -673.57 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Sale of Fixed Assets  82.82  73.11  37.25  108.26  118.17 

Sale / Maturity of Investment  --  0  56.5  --  -- 

Investment, Net  --  --  --  --  0 

Purchase of Investments  --  --  --  -10.15  -- 

Other Investing Cash Flow  --  --  --  --  0 

Other Investing Cash Flow  82.82  73.11  93.75  98.11  118.17 

Items, Total 

                 

Cash from Investing Activities  -176.16  -119.31  -457.53  -289.91  -555.4 

  

Other Financing Cash Flow  -0.26  -0.15  -0.2  -0.05  0.12 

Financing Cash Flow Items  -0.26  -0.15  -0.2  -0.05  0.12 

Cash Dividends Paid -  -94.14  -141.21  -141.21  -109.54  0 

Common 

Total Cash Dividends Paid  -94.14  -141.21  -141.21  -109.54  0 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Short Term Debt, Net  --  -531.15  412.73  -105.27  -22.9 

Long Term Debt Issued  --  0  105.96  --  0 

Long Term Debt Reduction  -28.98  -28.75  -21.91  -12.1  -12.1 

Long Term Debt, Net  -44.06  -42.42  -82.09  272.73  21.75 

Issuance (Retirement) of Debt,  -44.06  -573.57  330.64  167.45  -1.15 

Net 

                 

Cash from Financing Activities  -138.45  -714.93  189.23  57.87  -1.02 

  

Foreign Exchange Effects  -6.85  -33.34  13.47  -7.56  -- 

Net Change in Cash  -50.24  -39.49  -657.91  359.56  -150.46 

Net Cash - Beginning Balance  65.07  104.56  762.47  402.92  553.37 

Net Cash - Ending Balance  14.83  65.07  104.56  762.47  402.92 

Cash Taxes Paid  38.59  --  --  --  -- 

 
 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Significant Financial Events  

 
Devaluation was a significant financial event that occurred in 2016 and affected negatively on the 
company performance and displayed in most of the applied financial ratios compared to the rest of 
the years in the scope of analysis. 
 

Major Events   

 
 
 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

-​ D
​ eployed Analysis Ratios: 

· ​Test of Profitability: 

.1​ ​Test of Profitability Ratios: 

.2​ Test of Profitability Graphs: 

​

  

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

 
 
 
 
 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

 
 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

.3​ Test of Profitability Comments: 

​

When we tested profitability for Four years from 2015 to 2018 by measuring the first ratio of 
return on equity (ROE) We found that the return rate per dollar investor of the owners is 
increasing well due to the increase in net income and was the highest in 2018 where the rate 
of return on equity was 16.56% and this good comparing to the first year 2015 where it was 
1.14%   

  

ROA decreased in 2016 due to devaluation while increased in the following years 
(2017,2018) as the increase in net income is higher than the increase in average total assets 

  

Juhayna has achieved better earned income for every Egyptian pound invested by the owners 
in 2018 compared to previous years in the scope analysis and have a good financial leverage 
percentage can help them to expand the business. 

  

in 2015 EPS was 0.3 and decline afterwards till 2018 as a result of Net income variations 
while number of outstanding stocks is constant during this period  

  

Juhayna has achieved better earnings per share in 2018 compared to previous years in the 
scope analysis and the worst earning was in 2016 with 0.06% . 

  

Quality  of  Income  ratio  has  been  decreased  from  2017  and  2018  due  to increased financing 
in work-in capital by 777.67 

  

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

Profit margin refers to how effectively the company can convert sales into net income, the 
drop was in 2016 and then the company returned to achieve higher margins but did not yet 
reach profitability of 2015 

  

2-Activity Analysis; 

When we talk about assets utilization ratios for Juhayna : 

1)Fixed assets turnover : 

Net sales revenues/average net fixed assets 

Fixed-asset turnover is the ratio of sales to the value of fixed assets. It indicates how well the business is 
using its fixed assets to generate sales. 

the ratio increased from 2014 (1.3 times) to 2018 to reach 2 times becuase of the increase of sales 
revenue. 

Which means that every dollar invested in the company cycled 1.3 times in 2015 and increased in 2016 
&2017 to reach 2018 that every dollar invested in the company doubled by 2 times as a fixed assets 
turnover. 

This is a agood indicator as the net sales of the company increased from 3684.06 millions in 2014 to reach 
7122.31 million. 

 
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2) Recievable turnover: 

Net credit sales / net receivables. 

Receivable Turnover Ratio or Debtor's Turnover Ratio is an accounting measure used to measure how 
effective a company is in extending credit as well as collecting debts. The receivables turnover ratio is an 
activity ratio, measuring how efficiently a firm uses its assets. 

As the account receivables gross form 2014 66.32 millions to 181 millions which is a big increase 
compared to the net credit sales. 

the graph shows the company sell its products on credit and collect it 16.8 times of the avg net recievables 
per year and it decreased to be 14.6 in 2016 and to reach 11.9 times per year in 2019 (usually it’s a bad 
indicator as time decreased as it shows that the company has a problem in collection ) 

 
Juhayna Financial Analysis 
 
 
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Juhayna would divide the ratio of 11.9 by 365 days to arrive at the average duration. The average accounts 
receivable turnover in days would be 365 / 11.9 or 30.6 days. 

3) Average Age of Receivables : 

Days of the year/receivables turnover. 

Average age of Accounts receivables. The total amount of time a company's accounts recievable have been 
uncollected divided by the number of outstanding invoices 

Although the number of avg age of recievable increasing which in normal its a bad indicator but this good 
compared to other companies as domity which is competitor 

In 2015 it was 68.38. 

In 2016 was 91.71. 

In 2018 was 104.09 Yuhayna doing well compared to other companies. 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

For example if : customers on average take 30 days to pay their receivables. If the company had a 30-day 
payment policy for its customers, the average accounts receivable turnover shows that on average 
customers are paying one day late. Which shows that there is something wrong in the collections. 

4) Inventory turnover : 
Cost of good sold/average inventory . 

This ratio is important because total turnover depends on two main components of performance. The first 
component is stock purchasing. If larger amounts of inventory are purchased during the year, the company 
will have to sell greater amounts of inventory to improve its turnover. If the company can’t sell these 
greater amounts of inventory, it will incur storage costs and other holding costs.The second component is 
sales. Sales have to match inventory purchases otherwise the inventory will not turn effectively. That’s why 
the purchasing and sales departments must be in tune with each other. 

So the Inventory turnover is a measure of the number of times inventory is sold or used in a time period 
such as a year. It is calculated to see if a business has an excessive inventory in comparison to its sales 
level. 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

As showen in 2015 inventory turnover it was 4.7 and droped in 2016 & 2017 to start getting better in 2018 
to reach 5.2 times per year which is a good. 

5) Average Days in Inventory : 

Days in inventory is an efficiency ratio that measures the average number of days the company holds its 
inventory before selling it. The ratio measures the number of days funds are tied up in inventory. 

As We can see, Juhayna inventory turnover is 70.5. This means that Juhayna average to sold its inventory in 
70.5 days during the year. It also implies that it would take Juhayna approximately 70.5 days to empty its 
stock. 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

6) Account Payable Turnover : 

It how many times a company pays off its account payables during a period, they are short-term debt that a 
company owes to its suppliers and creditors. The accounts payable turnover ratio shows how efficient a 
company is at paying its suppliers and short-term debts 

in 2018 the company pays its accounts payable 13.2 times. Which is good indicator compared with the 
previous two years. 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

7) Average Age of Payables : 

The accounts payables turnover in days shows the average number of days that a payable remains unpaid. 
To calculate the accounts payable turnover in days, simply divide 365 days by the payable turnover ratio. 
Therefore, over the fiscal year, the company takes approximately 60.53 days to pay its suppliers. 

measures the average number of days it takes to pay its suppliers. 

so, in 2018 it takes 28 days from juhayna to pay its account payables. 

 
Juhayna Financial Analysis 
 
 
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which might be a problem as the company average age of recievables 30.6 days. 

8) Cash conversion ( trade cycle ) : 

The term "Cash Conversion Cycle" refers to the timespan between a firm's disbursing and collecting cash. 
However, the CCC cannot be directly observed in cashflows, because these are also influenced by 
investment and financing activities; it must be derived from Statement of Financial Position data 
associated with the firm's operations. 

=Average collection period +average days inventory held- average days payable outstanding 

 
 
 
 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

year  2015  2016  2017  2018 

Average days of  21.7  25  30.3  30.6 

recievables 

Average days of  77.3  100.6  93.9  70.5 

inventory 

Average days of  22.4  30.8  35  27.6 

payables 

Cash conversion  76.6  94.8  93.2  73.5 

 

When we compare 2018 with other years it shows that the cash conversion cycle takes 7305 days to 
collect cash which decreased than the previous cycles due to the company taking less days to sell its 
inventory. 

3- ​Liquidity Analysis:   

The first step in liquidity analysis is to calculate the company ​current ratio​. The current ratio shows how 
many times over the firm can pay its current debt obligations based on its assets. Current usually means a 
short time period of less than twelve months. The formula is:  

Current Ratio = Current Assets/Current Liabilities​.  

In the balance sheet, you can see the highlighted numbers. Those are the ones you use for the calculation. 
For 2015, the calculation was: 

Current Ratio = $1640, 73/$1318, 98 = 1.24 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

This means that the firm can meet its current short-term debt obligations 1.24 times over. In order to stay 
solvent, the firm must have a current ratio of at least 1.0 X, which means it can exactly meet its current 
debt obligations. So, this firm is solvent. 

However, in this case, the firm is a little less liquid than that. It can meet its current debt obligations. ​If 
you calculate the current ratio for 2016 &2017, you will see that the current ratio was 0.90 & 
0.91.​ So, the firm became in a hazard situation as it has very low liquidity is less than 1.0 and that is 
because the country inflation in 2016 However, in this case, the firm is a little less liquid than that. It can 
meet its current debt obligations and have a little left over. ​If you calculate the current ratio for 2018, 
you will see that the current ratio was 1.03.​ So, the firm improved its liquidity in 2018 which, in this 
case, is good as it is operating with a relatively better liquidity situation. 

The second step in liquidity analysis is to calculate the company's ​quick ratio or acid test​. The quick ratio is 
a more stringent test of liquidity than the current ratio. It looks at how well the company can meet its 
short-term debt obligations without having to sell any of its inventories to do so. 

Inventory is the least liquid of all the current assets because you have to find a buyer for your inventory. 
Finding a buyer, especially in a slow economy, is not always possible. Therefore, firms want to be able to 
meet their short-term debt obligations without having to rely on selling inventory. The formula is:  

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

Quick Ratio = Current Assets-Inventory/Current Liabilities​. 

In the balance sheet, you can see the highlighted numbers. Those are the ones you use for the calculation. 
For 2015, the calculation would be:  

Quick Ratio = $723, 55+794, 92+73, 04/$1318, 98 = 1, 21. 

This means that the firm can meet its current short-term debt obligations without selling inventory because 
the quick ratio is 1, 21 X, which is more than 1.0. In order to stay solvent and pay its short-term debt 
without selling inventory, the quick ratio must be at least 1.0, which it is. 

However, in this case, the firm will have to sell inventory to pay its short-term debt. ​If you calculate the 
quick ratio for 2016, 2017&2018, you will see that it was 0.17,0,22 &0, 14.​ This means that the firm 
cannot meet its current short-term debt obligations without selling inventory because the quick ratio last 
year slow down to 0.14 on its worst quick ratio last 5 years, which is less than 1.0. In order to stay solvent 
and pay its short-term debt it needs to improve its quick ratio to above 1.0 so it will have to sell inventory 
to meet its short-term debt obligations. 

The third step is the cash ratio is an even more stringent measure of liquidity as it considers cash and 
marketable securities only. It shows whether the company has readily available cash and marketable 
securities to pay for its current liabilities. 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

Cash ratio = (Cash and equivalents + Marketable securities) ÷ Current liabilities 

The above ratios measure the ability of a company to pay short-term obligations. They measure whether the 
company has enough current assets (or specific current assets) to meet current liabilities. These ratios 
provide an even useful insight when compared to benchmarks, such as past performance and industry 
averages. 

  

In the balance sheet, you can see the highlighted numbers. Those are the ones you use for the calculation. 
For 2015, the calculation would be: 

Cash Ratio = $794/$1318, 98 = 0,60 

This means that the firm can’t meet its current short-term debt obligations 0, 6 times over. In order to stay 
solvent, the firm must have a current ratio of at least 1.0 X, which means it can’t meet its current debt 
obligations. So, this firm is not solvent. However, the company in 2015 was in a middle situation as it is 
between 0.5 to 1 so it is preferred but not in very good situation also 

However, in this case, the firm is a little less liquid than that. It can’t meet its current debt obligations. As 
the company had as significant drop beginning from 2016 in its cash &cash equivalent as it decrease by 
more than 15% due to the inflation that happened in Egypt in 2016 and ​if you calculate the cash ratio 
for 2016, 2017 &2018, you will see that the current ratio was 0.06, 0.06 & 0.02.​ So, the firm 
became in hazard situation as it has very low cash liquidity is less than 1.0 

And in conclusion, it means that the company has insufficient cash on hands exists to pay its debts, so it 
means that the company should sell some of its current assets to solve its cash liquidity problem. 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

4- Debts Ratios 

Test of solvency: 

These ratios measure a company’s ability to meet its long term liabilities by measuring the degree that a 
company is relying on debts to fund its operations 

Debt to equity ratio ( D/E ) : 

. This ratio evaluate company’s financial leverage and the financial risk by measuring the amount of 
liabilities that exist for each $ invested by owners  

Period Ended  12/31/2018  12/31/2017  12/31/2016  12/31/2015  12/31/2014 

-to- Equity ratio  0.97  1.12  1.40  1.06  0.98 

 
Juhayna Financial Analysis 
 
 
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In 2014 & 2018: 

The company had the lowest D/E ratios where the ratio is less than 1 , which means that the company uses 
more equity to finance its operations than Debts 

In 2016: 

The highest rate of D/E ratio 

Due to the devaluation, that caused inflation which affected company’s equity 

So the company relied on borrowing and debts to finance its operations which relatively increased the D/E 
ratio 

2015 & 2017 : 

The company had the lowest D/E ratios where the ratio is less than 1 , which means that the company uses 
more debts to finance its operations than Equity 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

A good D/E ratio differs from industry to another but usually a good to Equity ratio is around 1 to 1.5 

Neither too high nor too low D/E ratio is a good indicator as 

Too high is a sign that the company may not be able to generate enough funds to cover its liabilities and 
subject to bankruptcy 

Too low means that the company 

For investors and lenders usually prefer low debt-to-equity ratios , as their interests and profits are better 
protected in the event of a business decline 

The higher the D/E Ratio , the higher is the risk to lenders and investors because the company is financing 
a larger amount of its operations and assets through borrowing 

Times interest earned ratio ( interest coverage ratio ) : 

Period Ended  12/31/2018  12/31/2017  12/31/2016  12/31/2015  12/31/2014 

e interest Earned  2.51  1.67  1.47  3.38  2.69 

 
Juhayna Financial Analysis 
 
 
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From investor or creditor’s perspective, an organization has: 

. TIE > 2.5, is considered an accepted risk 

. TIE < 2.5, is considered high risk level and the company is financially unstable 

. If TIE < 1, means that the company is not generating enough cash from its operations (EBIT) to meet its 
interest expenses. In this case, the company has to borrow to make up the difference. 

In 2015: 

The company has the best times interest earned ratio as the company makes enough income to pay for its 
interest expenses with 3.38 times over 

This is good indicator but also should be not above the industry average point as this means that the 
business is not utilizing excess income to reinvestment and growth to generate more profits 

2014 & 2018: 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

Considered as acceptable risk level as they are above 2.5 

2016 & 2017: 

The TIE interest rate are below 2.5, is considered that the company is financially unstable and has high risk 
level for bankruptcy and default   

Cash coverage ratio  

Period Ended  12/31/2018  12/31/2017  12/31/2016  12/31/2015  12/31/2014 

Cash Coverage   0.87  2.23  -1.35  3.43  3.30 

 
 

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

In 2014 & 2015 , the company had good cash coverage as it can cover it interest expense by almost 3.5 
times over and able to convert its profits from operating activities into cash 

  

In 2016, due to the devaluation of currency , the Cash coverage is negative which means that Juhanya was 
not able to cover to pay its interest expense by cash only and used other sources of short term assets to 
cover the interest 

In 2017, Juhanya has succeeded to increase the cash coverage in a significant way to be 2.23 by extending 
credit terms with its suppliers, efficiently managing inventory, and very little credit extended to its 
customers. 

In 2018, coverage has decreased again to be below 1, Juhanya was not able to cover its interest expenses 
by cash only but not bad as 2016 

This decrease may be an indicator to be financially unstable or may be due company's specific strategy to 
use funds for reinvestment or growth to generate more profits. 

5-​Market Analysis: 

•Market Value per Share 

Market value per share is the market value of a company divided by the total number of outstanding shares 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

Year  2018  2017  2016  2015 

Market value  11.26  10.63  6.24  7.74 

Total outstanding  941.41  941.41  941.41  941.41 

Market Value Per Share %  1.2  1.13  0.66  0.82 

• Market value ratio Reach his maximum level at 2018 due to the increasing in the market value.  

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

•​Price-Earnings (P/E) Ratio 

The price-earnings ratio is the current price of the stock divided by the earnings per share 

Period Ended  2018  2017  2016  2015 

Current Market Price Per Share  11.26  10.63  6.24  7.74 

Basic EPS  0.43  0.21  0.06  0.3 

P/E Ratio  26.19  50.62  104  25.8 

 

 
Juhayna Financial Analysis 
 
 
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Dr. Amr Abdel Aziz Youssef

• P/E ratio Reach his maximum level at 2016 Due the Decreasing in earning per share and the market price 
per share, get back to its normal ratio to 26 in 2018 Result of increase in stock price and increasing in EPS 

•​Dividend Yield Ratio 

Analysts arrive at the dividend yield ratio by dividing the total dividend payments paid per year by the 
market price of the stock 

 
Juhayna Financial Analysis 
 
  
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Year  2018  2017  2016  2015 

Total Dividends Paid  94.14  141.21  141.21  109.5

4 

Shares outstanding - Common Stock Primary Issue  941.41  941.41  941.41  941.41 

Dividends Per Share  0.1  0.15  0.015  0.12 

Market Price/Share  11.26  10.63  6.24  7.74 

Dividend Yield in %  0.90 1.40%  2.40 1.50% 

%  % 
 

• The dividends ratio decreased from 2015 (1.5%) to 2018 (0.9%), because of the increase of Share price and 
decrease in dividends paid per share 
 

  

 Book Value Per Share•

 The book value is a company's equity (not including preferred stock) divided by the shares outstanding in
 the market

 
Juhayna Financial Analysis 
 
  
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Dr. Amr Abdel Aziz Youssef

 .

Years  2018  2017  2016  2015 

2,608.30  2,316.9 2,291.4 2,422.1

Total Equity  0  0  3 

Outstanding  941.41  941.41  941.41  941.41 

Book Value  2.77  2.46  2.43  2.57 

 

 The book value decreased from 2015 (3.91$) to 2018 (3.78$), because of change in liabilities did not equal change •
 in assets

 
Juhayna Financial Analysis 
 
  
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Market/Book (M/B) Ratio 

Analysts can compare a company's market value to its book value. The ratio can be calculated by 
dividing the market value per share by the book value per share 

Market value  11.26  10.63  6.24  7.74 

Book Value $  2.77  2.46  2.43  2.57 

M/B Ratio  4.06  4.32  2.57  3.01 

 

 .The M/B ratio increased from 2015 (3.01%) to 2018 (4.06%), because of the increase of market value •

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

 The M/B ratio reached to the max. in 2017 from 2015 (4.32%), because of the increase of market value and •
 decrease of book value

Conclusion: 

Devaluation was a significant financial event that occurred in 2016 and affected negatively on the 
company performance and displayed in most of the applied financial ratios compared to the rest of the 
years in the scope of analysis. 

Strengths & Weaknesses  

Strengths:  

1- Biggest Market share  

2- Strong brand name  

3- Strong & high experienced management team  

4- Wide variety of business portfolio & products  

5- Well established distribution matrix  

6- Well established and financed R&D division  

7- Reasonable product price which enables strong competition in the market  

8- Concentration on healthy products  

9- Spread in a large number of countries all over the world  

10- Availability of capital for expansion or expenses  

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

Weaknesses:  

1- Lack of resources for packaging  

2- Lack of skilled functional& technical skilled workers  

3- Seasonality of production reduces plant capacity utilization increasing capital requirements and it 
restricts product mix  

4- Instable prices of fruits which affects the profit margin  

5- Dependability on imports in areas of shortages, such as milk powders  

6- Processing industry is smaller in scale thanthemain international competitors.  

7- Scale in marketing is better than average but also below main international competitors, leading to cost 
disadvantages  

8- Emergence of strong competitors such as Almaraai  

 
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

   
Juhayna Financial Analysis 
 
 
Financial Accounting & Reporting 
 
Dr. Amr Abdel Aziz Youssef

 
 
 
Thank you! 

 
Juhayna Financial Analysis