EARNINGS WATCH- A number of our friends were among those reporting earnings yesterday as the 3Q results season eases to a close. Among those with results out yesterday or overnight:

SODIC reported a 54% y-o-y jump in net profit to EGP 166.2 mn in 3Q2017. Revenues increased 10% y-o-y to EGP 584 mn for the period, driven mainly by deliveries, which remained on track with 297 units delivered compared to 287 in 3Q2016. Eastown Residences made up the bulk of the quarter’s deliveries at 63% of the total. “With gross margins for the quarter hitting the 40% mark in such an inflationary backdrop we are once again demonstrating our ability to generate superior profitability on our developments,” MD Magued Sherif said. “Our sales performance was very much in line with our expectations, given the limited inventory on the Mediterranean north coast and we remain on track to meet our 2017 financial and operational goals.” The company delivered the first units in its Courtyards developments in SODIC West during the quarter and plans to launch its New Cairo project SODIC East over the coming months, with expectations seeing it making significant contributions to profitability in 4Q2017.

Egypt Kuwait Holding Company grew its bottom line threefold during 3Q2017, posting net income of USD 41.7 mn on revenues that were 13% higher y-o-y at USD 86.5 mn. The quarter saw the company make “new headway in our efforts to streamline our portfolio by divesting from legacy businesses and affording our balance additional strength and liquidity that will usher in a new growth phase and continued value creation,” Chairman Moataz Al-Alfi said. EKH completed divestments worth over USD 200 mn during the quarter, in addition to funneling “proceeds from share sell-downs in non-operational platforms to the reduction of our debt exposure in the tune of USD 75 mn.” Management is optimistic about future prospects, especially given developments in natural gas with the Offshore North Sinai concession, and as the company “continues to push forward with other growth initiatives across our portfolio that target import substitute plays.”

Elsewedy Electric posted bottom-line growth of 116% y-o-y for 3Q2017, which came in at EGP 1.56 bn compared to EGP 720.7 mn in 3Q2016. Revenues also increased by 135.2% y-o-y to EGP 11.46 bn, driven largely by growth in the turnkey projects and wires and cables segments. Going forward, Elsewedy intends to remain focused on “the continued creation of sustainable, long-term value for stakeholders,” which has the company “actively seeking new avenues for growth in existing and new MENA markets.” The company is also squarely focused on internal strengthening as it does so, with CEO Ahmed El Sewedy noting that, “We are strengthening our organisation through the standardization of our internal procedures, adopting world-class corporate governance frameworks and developing our human resources as our key success pillar.”

Madinet Nasr Housing and Development posted a net profit after tax of EGP 246 mn in 3Q2017, a drop of 20% y-o-y. Top line was 3% lower y-o-y at EGP 560 mn, despite an increase in contracted sales and deliveries during the three-month period. The company attributed the drop largely to lower contributions from its Capital Gardens project, which is being co-developed with Palm Hills. On a nine-month basis, net profit grew 60% y-o-y to EGP 757 mn as the company continued to push forward with new launches at Taj City and new contracts at Sarai. CEO Ahmed El Hitamy noted that, “As we gear up for an accelerated deliveries and sales performance during the final months of the year, we remain confident in our ability to meet year-end targets, having already generated some EGP 3.6 billion in contracted sales during the nine-month period.”

Also reporting earnings yesterday:

• Orascom Development’s net profit for 3Q2017 reached EGP 92.5 mn, compared to a loss of EGP 46.0 mn in the same period last year. A pick up in unit deliveries led the turnaround. The company also noted it’s preparing to launch phase two of its business hub G-Space in El Gouna by mid-December.
• Oriental Weavers reported an 18% y-o-y drop in net profit after tax to EGP 109 mn in 3Q2017. This came despite a 64% y-o-y increase in sales revenues, which came in at EGP 2.6 bn.