EARNINGS WATCH- Qalaa Holdings’ revenues rise 13% y-o-y in 1Q2019 to EGP 3.4 bn
EARNINGS WATCH- Qalaa Holdings revenues rise 13%, losses narrow to EGP 154.6 mn: Qalaa Holdings’ revenues rose 13% y-o-y in 1Q2019 to EGP 3.4 bn “on the back of robust results posted across its subsidiaries,” the company said in its earnings release (pdf). The company singled out its energy platform, with TAQA Arabia’s revenues up 41% y-o-y and Tawazon’s revenues up by 59% y-o-y. Growth has also been strong in the agrifoods space, with revenues for ASCOM up 18% y-o-y and Nile Logistics up 86% y-o-y. The company’s losses during the period narrowed to EGP 154.6 mn from 186.1 mn in 1Q2018. “Growth has been dual-driven by both the streamlining of Qalaa’s portfolio in addition to successful growth strategies that capitalize on favorable economic policies. We began implementing a three-year growth strategy at our energy segment in late 2018 that will see us grow our distribution reach and diversify our offerings,” said chairman and founder Ahmed Heikal.
Looking ahead: Qalaa is continuing with its portfolio restructuring strategy, with a focus on balancing risk reduction with “small incremental investments to generate growth,” Heikal added. Strengthening its foothold in Egypt’s renewable energy sector is a priority, with further PV projects identified in addition to its Benban solar project. Meanwhile, Qalaa’s ERC plant is expected to start generating income in July. Unrest in Sudan has impacted cement production, and therefore, “while we remain committed to allocating the necessary resources to Al Takamol, management is actively working to exit this investment,” said co-founder and managing director Hisham El-Khazindar.
The Egyptian Transport and Commercial Services Company (Egytrans) reported a 27% y-o-y increase in 1Q2019 net profits to EGP 17.6 mn, up from EGP 13.8 mn a year earlier, the company said in an earnings statement picked up by Masrawy. Revenues for the quarter rose 42.8% to EGP 89 mn.