Earnings Watch: Elsewedy, EKH, ODE, TMG, Emaar Misr, and AT Lease report 1H2018 earnings
EARNINGS WATCH- Elsewedy Electric reported a 21% y-o-y decline in net profit after minority interest in 1H2018 to EGP 2.37 bn, down from EGP 3.01 mn in the same period last year, according to the company’s earnings release (pdf). Revenues for the period fell 3% y-o-y to EGP 20.1 bn, largely due to a drop in the turnkeys project segment. Despite that, however, the company witnessed strong growth across its business lines as “the fundamentals supporting Elsewedy Electric’s business remain strong: Populations in the MENA region and the GCC continue to grow at a quick pace and the movement towards industrial modernization has only intensified in the last year,” CEO Ahmed Elsewedy said. Looking ahead, Elsewedy will focus on growth through the optimization of its cost and governance structure, as well as depend on its reputation and competitive edge to allow it “capture the upside across a variety of infrastructure projects.”
Egypt Kuwait Holding (EKH) saw bottom-line growth for 2Q2018 gain a solid 46% y-o-y to USD 30.7 mn, the company reported (pdf). EKH saw growth in revenues for the quarter rising 45% y-o-y to USD 116.1 mn. Revenue growth was driven by strong operational performances by subsidiary companies and supported by the commencement of operations at Offshore North Sinai (ONS). "Our results in the second quarter of the year demonstrate the operational excellence of our portfolio companies,” Chairman Moataz Al Alfi said. After having weathered macro and market headwinds and re-emerged as leaders in their respective markets, our subsidiaries today are delivering organic growth through a continued improvement in on-the-ground results and success in paving new growth avenues,” he added. Moving forward: “Our focus during the second half of the year will continue to be on operational improvements as a primary growth driver, all while pushing forward expansion initiatives across our subsidiaries and keeping an eye out for new [options], such as our ongoing investment in the production of medium-density fiberboards,” Al Afifi said.
Orascom Development Holding (ODH) reported a net loss of CHF 16.4 mn in 1H2018, the company said in its earnings release. The results for the period reflect “a one-off FX translation loss of CHF 16.7 mn…mainly related to the devaluation of the EGP in 2016.” ODH delivered strong operational results, however, that “curbed bottom lines losses” for the group, helping it break even.
Talaat Moustafa Group Holdings (TMG) reported an 11% y-o-y jump in net profit after taxes to EGP 774.21 mn in 1H2018, compared to EGP 696.54 mn in the same period last year, according to an EGX filing (pdf). The company’s revenues also increased to EGP 3.97 bn in 1H2018, marking a 19% y-o-y rise from EGP 3.33 bn.
Emaar Misr for Development posted a net profit of EGP 1.10 bn in 1H2018, compared to 976.95 mn in the same period last year, according to an EGX filing.
Al Tawfeek Leasing (AT Lease) posted a net profit (pdf) after tax of EGP 17.9 mn in 2Q2018, up from EGP 13.8 mn during the same period last year.