EARNINGS WATCH- High-profile snackfood maker Edita recorded a 20.4% y-o-y increase in net profit in 4Q2018 to EGP 128.3 mn, up from EGP 106.6 mn in 4Q2017, according to the company’s earnings release (pdf). Revenues for the quarter reached EGP 1.1 bn, up 13.2% y-o-y from EGP 958 mn in 4Q2017 “on the back of both higher volumes and improved pricing as the company captured growing market demand with an optimized product mix.” Edita boss Hani Berzi noted that the company’s “strong performance for the year was driven by our strategy to capture growing demand with a tailored product mix suited for today’s market dynamics. The results are clear with volumes fast recovering to levels seen only before the devaluation of the EGP.” The year also saw flagship wafer brand, Fresca, launch in Morocco — as well as the leading snack producer maintaining its market position in core segments, holding a nearly 53% share of the cake market and growing its share of the croissant market to 64%. On a regional level, Edita’s gross export sales were up 33.0% y-o-y to EGP 315.9 mn, making up 8.3% of total revenues. The company highlighted growth opportunities in new production lines, new market segments, export growth and direct penetration to North African markets.

Egyptian Kuwait Holding (EKH) reported a 40% growth in recurring profit in FY2018 to close the year with USD 95.1 mn on the bottom line, the company said in its earnings release (pdf). EKH’s consolidated revenues in FY 2018 were up 16% to USD 480.2 mn. EKH flagged up significant catalysts for future growth in the earnings statement, noting that new seismic survey analysis has “revealed potential natural gas reserves of c.2,352 bn cubic feet” at its Offshore North Sinai (ONS) concession, which “significantly adds to ONS’ long-term growth potential and its ability to generate important new incremental value to our shareholders for years to come.” Suggesting a further upgrade in ONS’ total production profile could be on the cards, EKH said “expansion in the upstream natural gas business is at the core of our growth strategy and comes at exactly the right moment as Egypt is positioning itself as the premier energy hub in the eastern Mediterranean.” The company is also expanding its electricity generation capacity and growing into the electricity distribution market to “build a fully-integrated power provider” and is looking to replicate its “our home-market success in natural gas distribution on a regional scale,” company chairman Moataz Al Alfi said.

GB Auto reported a consolidated net profit of EGP 93.8 mn in 4Q2018, reversing a consolidated net loss of EGP 222.6 mn in 4Q2017 as the market began recovering, according to the company’s earnings release (pdf). Revenues for the quarter hit EGP 7.0 bn, up 28.4% y-o-y. “2018 was by all measures a year of market recovery and growth for our Group, yet by no means was it one without challenges," said GB Auto CEO Raouf Ghabbour. “We successfully realigned our portfolio and sales mix to shifting market dynamics and captured the recovery in consumer demand, while simultaneously having to navigate and absorb the ripple effects of new macro and market-level regulation.” Looking ahead, GB Auto is focusing on efficiency and continued optimization of its portfolio, noting the importance of working capital efficiency this year and saying, “Our strategy will see us grow our [local assembly] offerings during the second half of 2019 and expand our [full import] offerings to stay ahead of the competition.”

Elsewedy Electric reported a 17.3% y-o-y drop in net profit after tax to EGP 1.5 bn in 4Q2018, down from EGP 1.8 bn in 4Q2017, the company said in its earnings release (pdf). Revenues for the quarter grew 12.8% y-o-y to EGP 12.2 bn from EGP 10.8 bn in 4Q2017. Management attributed the growth in the topline to growth in the company’s turnkey projects for the quarter. “As demand for infrastructure investment continues to grow and as Africa is emerging as an important component in global supply chain, we are proud to be at the forefront of such challenging yet exciting frontiers,” CEO Ahmed Elsewedy said. “We are especially proud of our upcoming joint venture with The Arab Contractors in carrying out the USD 2.9 bn EPC contract for the Rufiji Hydropower Project in Tanzania which was awarded in December.” looking ahead, the company is looking to “engaging expansion opportunities, both organic or inorganic.”

Palm Hills Development (PHD) reported a net profit after tax and minority interest of EGP 811.7 mn in FY2018, up from EGP 805.6 mn in the previous year, according to an EGX filing (pdf). Revenues for the year recorded EGP 7.4 bn, up from EGP 6.6 bn in 2017.

Cement producer Arabian Cement Company reported a net profit after tax and minority interest of EGP 231.6 mn in FY2018, up from EGP 215.6 mn in 2017, according to the company’s consolidated financial statements (pdf). Sales revenues for the year reached EGP 3.3 bn, up from EGP 2.7 bn in 2017.

The National Bank of Kuwait-Egypt reported a 33.2% y-o-y increase in FY2018 net profits to EGP 2 bn, up from EGP 1.5 bn last year, according to a press release picked up by Zawya.