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Monday, 5 March 2018

Earnings Watch: GB Auto, Cleopatra Hospitals Group, Ibnsina Pharma, Oriental Weavers report 2017 results

EARNINGS WATCH- GB Auto reported a consolidated net loss of EGP 666.9 mn in 2017, narrowing from EGP 865.7 mn the previous year, according to a company statement (pdf). Top line for the year rose 15.5% y-o-y to EGP 17.56 bn. Last year saw the group taking steps to return to profitability, CEO Raouf Ghabbour said. “We are confident that the increased appetite for our automotive products, will see us steadily regain our market share to our historical rate of 33% and improve our margins.” Ghabbour stressed the importance of passing the Automotive Directive to capitalize on the “positive sentiment finding its way back to the automotive market” and “the window of opportunity to become an automotive hub in the region.” Tap or click here for the full earnings release (pdf).

Cleopatra Hospitals Group’s consolidated net profit rose 32% y-o-y to EGP 118.2 mn in 2017, up from EGP 89.4 mn in 2016, the company said in its earnings release (pdf). Revenues came in 30% higher y-o-y at EGP 1.126 bn, with the rise “supported by improved case mix and pricing.” Cleopatra Hospital was the largest contributor to group revenues for the year with 44% of the total. “2017 was a milestone year for the Group which saw us deliver on several strategic fronts,” Group CEO Ahmed Ezzeldin said, pointing to business development initiatives, platform integration, investing in infrastructure and technology upgrades, and pushing ahead with its acquisition and expansion strategy. “We are heading into 2018 have reshaped our organization and positioned the Group for further growth and value creation for all our stakeholders.”

Ibnsina Pharma reported an 88.9% y-o-y jump in net profit to EGP 192.1 mn, up from EGP 101.7 mn a year before, according to an EGX filing. Revenue for the year came in at EGP 9.59 bn, up from EGP 7.21 bn in FY2016. On a Q4-basis, Ibnsina’s net profit more than doubled y-o-y to EGP 49.1 mn, up from EGP 20.1 mn. The company recorded its largest contribution to revenues from its retail pharmacies segment as it reported its maiden earnings as a publicly traded company. The earnings results came just one day after the Cairo Court of Appeals agreed to hear the company’s appeal of lower court verdict imposing a fine for allegedly colluding with industry rivals. The lower court verdict is now set aside pending; the first hearing in the case is due to take place in May 2018.

Oriental Weavers saw its consolidated net profit rise 40.2% y-o-y to EGP 742 mn in 2017, up from EGP 529 mn the previous year, the company said in a regulatory filing (pdf). The rise in profits came on the back of a 50% y-o-y increase in sales revenues, which recorded EGP 10.174 bn in 2017.

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