Earnings watch: Qalaa Holdings reports 3Q18 results
EARNINGS WATCH- Qalaa Holdings recorded a net profit of EGP 126.4 mn in 3Q2018, up from a net loss of EGP 311.8 mn during the same period last year, according to the company’s earnings release (pdf). Qalaa’s revenues rose 40% y-o-y in 3Q2018 to EGP 3.3 bn “on the back of strong results from its energy subsidiary, TAQA Arabia, and the consolidation of National Printing.” The company’s mining division, as well as its transport and logistics division, also contributed to the quarter’s consolidated revenue growth. The sole outlier was its cement division, which “recorded a 20% y-o-y decline in revenues in 3Q18.” Commenting on the results, Qalaa Holdings Chairman and Founder Ahmed Heikal said, “Qalaa delivered a solid operational performance during the third quarter of 2018, building on the positive growth trajectory since the beginning of the year.”
Looking ahead: “In the upcoming year, the Group will continue to focus on growing its core subsidiaries, while continuing to divest from its non-core businesses and disposing or consolidating Qalaa’s minority investments. Solid growth trajectories across Qalaa’s divisions, multiple operational improvements throughout 2018, the imminent start of production at ERC and completing the clean-up of the Group’s financials leave us confident that the coming quarters will gradually bring Qalaa back to operational profitability and allow us to create new value for our shareholders,” Co-Founder and Managing Director Hisham El Khazindar said.