MIRA INFORM REPORT
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Report Date : |
15.09.2011 |
IDENTIFICATION DETAILS
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Name : |
AL MARAI TRADING COMPANY LTD |
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Registered Office : |
Al Marai Building,
Airport Road, Al Izdehar District, P O Box 8524, Riyadh 11492 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2010 |
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Year of Establishment : |
1975 |
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Com. Reg. No.: |
1010084223, Riyadh |
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Legal Form : |
Limited Liability Partnership |
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Line of Business : |
Integrated Dairy Foods Company |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 7,500,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Saudi Arabia |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
SUMMARY
Company Name : AL MARAI TRADING COMPANY LTD
Country of Origin : Saudi Arabia
Legal Form : Limited Liability Partnership
Registration Date : 1975
Commercial Registration Number : 1010084223, Riyadh
Chamber Membership Number : 23077
Issued Capital : SR 2,300,000,000
Paid up Capital : SR 2,300,000,000
Total Workforce : 4,000
Activities : Integrated dairy foods company
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Recommended Credit Limit : US$ 7,500,000
COMPANY NAME
AL MARAI TRADING COMPANY LTD
company ADDRESS
Registered &
Physical Address
Building : Al Marai Building
Street : Airport Road
Area : Al Izdehar District
PO Box : 8524
Town : Riyadh 11492
Country : Saudi Arabia
Telephone : (966-1) 4700005 / 4620088 / 4781216
Facsimile : (966-1) 4701555 / 4701926 / 4701931
Email : marketing@almarai.com
Premises
Subject operates
from a suite of offices, a warehouse, cold storage facilities and a factory
covering an area of 45,000 square metre that are owned and located in the
Industrial Area of Jeddah.
Branch Office
(s)
Location Description
·
PO Box:
22306 Distribution
centre
Jeddah 21463
Tel: (966-2) 6836068
Fax: (966-2) 6836624
·
PO Box:
5017 Distribution
centre
Dammam 31422
Tel: (966-3) 8577511
Fax: (966-3) 8577987
·
PO Box:
1493 Distribution
centre
Khamis Mushait 11451
Tel: (966-7) 2230764
Fax: (966-7) 2236739
Subject operates 28
distribution depots throughout the GCC that are serviced by a fleet of 500
chilled sales vans.
KEY PRINCIPALS
Name Position
·
HH Prince Sultan Bin Mohamed Bin
Saud Al Kabeer Chairman
·
Abdulrahman Bin Abdulaziz Al
Muhanna Managing
Director
·
Ibrahim M Alissa Director
·
Dr Majed A Al Gassabi Director
·
Mohamed Al Damer Director
·
Nasser Al Muttawa Director
·
Mosa Omran Al Omran Director
·
HH Prince Naif Bin Sultan Bin
Mohammed Bin Saud Al Kabeer Director
·
Dr Sami Mohsen Baroom Director
·
Abdulrahman Al Fadley Chief
Executive Officer
·
Georges Schorderet Finance
Manager
·
Hussam Abdul Qader Marketing
Manager
·
Alan van der Nagel Operations
Manager
·
Nicolas Jay Sales
Manager
LEGAL FORM & OWNERS
Date of Establishment : 1975
Legal Form :
Limited Liability
Partnership
Commercial Reg. No. : 1010084223,
Riyadh
Chamber Member No. : 23077
Issued Capital : SR 2,300,000,000
Paid up Capital : SR 2,300,000,000
Name of Partner
(s)
·
HH Prince Sultan Bin Mohamed Bin
Saud Al Kabeer
·
Abdulrahman Bin Abdulaziz Al
Muhanna
·
Savola Group
·
HRH
Princess Aljawhara Bint Saad bin Abdulaziz
·
Members
of the general public
AFFILIATED COMPANIES
·
Al
Marai Company Bahrain SPC
Manama
Bahrain
·
Arabian
Planets for Trade and Marketing LLC
Muscat
Oman
·
Al
Marai Company WLL
Doha
Qatar
·
Al Youm
for Food Products Company LLC
Muscat
Oman
·
International
Paediatric Nutrition Company
Riyadh
·
Al
Marai Investment Company Ltd
Riyadh
·
Al
Marai Baby Food Company Ltd
Riyadh
·
Hail
Agricultural Development Company
Hail
·
Western
Bakeries Company Ltd
Jeddah
·
International
Baking Services Company Ltd
Riyadh
·
Modern
Food Industries Ltd
Riyadh
·
Agricultural
Input Company Ltd
Riyadh
·
Al
Marai International Holding WLL
Manama
Bahrain
·
Al
Marai Investment Holding WLL
Manama
Bahrain
·
Markley
Holdings Ltd
Jersey
United Kingdom
OPERATIONS
Activities: Engaged in the production and marketing of dairy
products, butter, cheese, milk, fruit juices, cream, UHT milk and evaporated
milk. The company’s operations are performed through the following divisions:
- Farming Division
Al Marai Feed Factory
PO Box: 8524
Riyadh 11492
Tel: (966-1) 4700005
The Farming Division is engaged in the operation of a number of farms
supporting a herd of 45,000 Holstein Friesian cows that are used to produce the
milk necessary for the processing division.
It was the first dairy farm in the world to gain ISO 9002 accreditation.
It is also involved in the manufacture of animal feeds.
- Processing
Division
The
Processing Division is responsible for the assembly of raw milk from farms, the
processing of milk and cheese, the importation of a range of long life products
and the subsequent distribution of all product from the cold stores and factory
to 28 depots.
Prior to 1996 the company operated four fresh dairy processing plants
and a cheese blending plant with an additional 70,000 litre per day pilot
project plant used for new product development. The plants were located at
Jeddah on the Red Sea coast, Khamis Mushayt in the South West highland region,
at Al Kharj approximately 100 kilometres south of Riyadh in the Central
Province and one farm-based plant approximately 150 kilometres from Dammam on
the Arabian Gulf.
In order to achieve anticipated sales growth, product expansion and to
maintain high quality standards, increased and enhanced processing capacity was
identified as a key strategic requirement. Accordingly in 1994, the company
commenced the construction of a state of the art 45,000 square meter processing
facility, which more than doubled production capacity and significantly
strengthened the company’s ability to expand the product range and also to
rationalize existing sites. The plant commenced production in August 1996 and
has a capacity of 1.5m litres per day.
Currently, over 60% of all milk is fermented into a product called “Laban”, a traditional Middle Eastern drink akin to
a natural drinking yoghurt and approximately 25% is processed as fresh milk.
Other products include a set yoghurt called “Zabadi”, a thick spooning cream called “Ghiste”, a fermented fat product called “Labneh”, UHT milk, and a wide range of fruited
products including stirred and set yoghurts and fruit laban. Milk and Laban are
produced in full fat (3%) and low fat forms and all products are packaged in a
variety of sizes and conventional formats.
The cheese blending factory is dedicated to the processing of a cream
cheese, which is packed in glass jars, cans and plastic pots. In 1993, the
company commenced production of full fat recombined milk and a range of
flavoured recombined milks.
The new processing plant was voted "World’s Food Plant of the Year
1998" by US-based Food International Magazine.
Processing
Capacity: 1.5 million
litres of milk per day
Import
Countries: Europe and the
United States of America.
Export
Countries: Kuwait, Bahrain,
Qatar, the United Arab Emirates, Oman, Yemen and
Lebanon.
Brand Names: ALMARAI
Subject has a
workforce of approximately 4,000 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: Saudi
Riyals (SR 000’s)
Balance Sheet 31/12/10 31/12/09 31/12/08
ASSETS
Current Assets
Cash and Cash
Equivalents 240,750 507,666 246,585
Derivative
Financial Instruments 6,529 - 6,648
Receivables and
Prepayments 613,756 455,492 409,777
Inventories 1,299,337 1,218,575 1,096,723
Total Current
Assets 2,160,372 2,181,733 1,759,733
Non Current
Assets
Investments and
Financial Assets 957,683 963,131 489,337
Property, Plant
and Equipment 7,866,639 6,282,208 4,704,573
Biological Assets
769,505 734,689 638,735
Intangible Assets
- Goodwill 793,468 793,468
548,636
Deferred Charges 23,550 31,766 40,270
Total Non Current
Assets 10,410,845 8,805,262 6,421,551
TOTAL ASSETS 12,571,217 10,986,995 8,181,284
LIABILITIES AND
EQUITY
Current
Liabilities
Short Term Loans 545,902 395,534 511,165
Payables and
Accruals 1,253,424 962,585 669,558
Derivative
Financial Instruments 79,120 82,153 108,072
Total Current
Liabilities 1,878,446 1,440,272 1,288,795
Non Current
Liabilities
Long Term Loans 4,301,301 3,981,193 3,132,956
Employees'
Termination Benefits 206,088 165,814 128,041
Total Non Current
Liabilities 4,507,389 4,147,007 3,260,997
Shareholders'
Equity
Share Capital 2,300,000 1,150,000 1,090,000
Share Premium 1600,500 1,600,500 612,000
Statutory Reserve
654,903 526,361 416,689
Other Reserves (155,828) (81,390) (83,161)
Retained Earnings
1,734,039 2,187,164 1,581,614
Total
Shareholders' Equity 6,133,614 5,382,635 3,617,142
Minority Interest
51,768 17,081 14,350
TOTAL LIABILITIES AND EQUITY 12,571,217 10,986,995 8,181,284
Statement of
Income
Sales 6,930,910 5,868,805 5,029,904
Cost of Sales (4,194,989) (3,503,013) (3,030,947)
Gross Profit 2,735,921 2,365,792 1,998,957
Selling and
Distribution Expenses (1,045,973) (887,147) (750,878)
General and
Administration Expenses (230,423) (199,735) (187,108)
Income before
Bank Charges, Zakat
and Minority
Interest 1,459,525 1,278,910 1,060,971
Share of Results
of Associates (5,913) (2,003) -
Bank Charges (120,621) (147,518) (125,489)
Income from Main
and Continuing Operations 1,332,991 1,129,389 935,482
Zakat (26,021) (29,229) (24,662)
Income before
Minority Interest 1,306,970 1,100,160 910,820
Minority Interest
(21,553) (3,438) (558)
Net Income for the Year 1,285,417 1,096,722 910,262
Local sources
consider subject’s financial condition to be Good.
BANKERS
·
National
Commercial Bank
Naseria Branch
PO Box: 17248
Riyadh 11484
Tel: (966-1) 4036500
·
Riyad
Bank
King Abdul Aziz Road
PO Box: 22622
Riyadh 11416
Tel: (966-1) 4122243
Fax: (966-1) 4013030
·
Arab
National Bank (ANB)
King Faisal Street
North Morabbaa
PO Box: 56921
Riyadh 11564
Tel: (966-1) 4029000
Fax: (966-1) 4027747
·
Saudi
British Bank
PO Box: 2907
Riyadh 11462
Tel: (966-1) 4794400
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL COMMENTS
Al Marai Trading
Company Ltd is the largest integrated dairy foods company in the world with a
herd of 45,000 livestock and a market share of 40-50% of the fresh dairy
markets in the GCC. Over 20,000 customers are serviced on a daily basis through
the company’s network of 28 distribution depots that are located throughout the
GCC.
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.81 |
|
UK Pound |
1 |
Rs.75.16 |
|
Euro |
1 |
Rs.65.11 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.