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Sunday, 23 October 2016

Juhayna net profit down FX crunch, inability to pass on full impact of rising cost

** EARNINGS WATCH: Juhayna reported a 34% drop in net income to EGP 58.2 mn for the three months ending 30 September as the company held back from passing on the full impact of price rises to a sensitive consumer market. Sales rose almost 11% to just under EGP 1.3 bn in the same period. “Sales increased in light of unusual conditions, and this is good. But the increase in cost was not fully passed on to the consumer. We are increasing prices only slightly in order to maintain our customers,” Juhayna Chairman Safwan Thabet told Reuters. The company aims to curb imported production inputs, bringing them to 50% within a year’s time from 60% today. Juhayna is among the earliest filers of earnings results each quarter; look for the pace of disclosures to pick up starting next week.

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