Juhayna Jumps Most in Two Weeks After Profit Surges: Cairo MoverAhmed A. Namatalla
Juhayna Food Industries climbed the most in two weeks after the expansion at Egypt’s biggest publicly traded dairy and juice company led to a surge in full-year profit.
The shares of the Cairo-based company, which is recovering from a fire that destroyed its main yogurt plant in 2010, rose 2.5 percent, the most since Jan. 31, to 8.72 Egyptian pounds at the close in Cairo. That contrasts with an 0.3 percent decline for the benchmark EGX 30 Index. The stock has gained 13 percent this year, more than double the increase in the EGX 30 Index.
Profit soared 75 percent to 325.4 million pounds ($48 million) as the company opened five stores and added 140 distribution vehicles, it said in a statement to the Cairo bourse today. The rebuilding of its yogurt factory near Cairo and construction on another in Assiut are 70 percent complete, it said. The facilities are set to start this year.
“They’ve been investing heavily for the last couple of years and it’s paying off,” said Hatem Alaa, equity analyst at Cairo-based EFG-Hermes Holding SAE, who has a buy rating on the stock. “They still have much room for growth and their financials haven’t been affected by bouts of unrest last year so the medium-term outlook remains robust.”
Juhayna, which relies on buying its milk from independent farmers, said its first dairy farm is also scheduled to start “partial operations” this year.