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Tuesday, 5 November 2019

Earnings watch: CIB, Ibnsina, CI Capital, Abu Qir, MNHD report results

EARNINGS WATCH- CIB net profits rise 23% in 3Q: CIB posted consolidated quarterly profits of EGP 3.18 bn in the third quarter, up 23% from EGP 2.59 bn in the same period last year, according to a company press release (pdf). Revenues for the quarter came in at EGP 6.06 bn, up 1% y-o-y. The bank booked EGP 8.54 bn in net profit over the first three quarters of 2019, a 22% y-o-y increase from EGP 7.02 bn in 2018. Revenues for the period totalled EGP 16.9 bn, up 11% y-o-y. Management said the strong growth figures “largely drew on its flexible balance sheet structure” which allows it to quickly adapt to major developments in the market.

Looking ahead: “We are positive about the bank’s growth prospects as visible in its resilient balance sheet fundamentals alongside management’s current focus on growing the bank’s lending portfolio,” the bank’s management said. Read CIB’s full consolidated earnings release here (pdf).

EARNINGS WATCH- Ibnsina quarterly profits rise by 25%: Ibnsina Pharma posted quarterly net profits of EGP 142.4 mn in 3Q2019, a 25% increase on the same period in 2018, according to the company’s latest earnings release (pdf). This was driven by a 26% y-o-y increase in quarterly revenues to EGP 4.4 bn. Over the first nine months of the year the company has generated revenues of EGP 11.9 bn, a 26% y-o–y increase from 2018. This has produced a net profit of EGP 245.6 mn, up 29% from last year. Co-CEO Omar Abdel Gawad attributed the rise in revenues to the company’s “unique value-proposition and integrated services portfolio.”

Looking ahead: Ibnsina will slowly restore its “wholesale segment contribution” to normal levels in order to keep borrowing costs under control, Co-CEO Mahoud Abdel Gawad said. The company has succeeded in lowering its net debt-to-equity ratio to 1x from 1.2x during the third quarter and sped up its cash conversion cycle by two days. “We expect continued improvement on both the working capital and net debt front over the coming period,” Mahmoud said.

Also reporting their results as we build toward the peak of earnings season next week:

CI Capital’s net profit before minority interest rose 26.6% in 9M2019 to EGP 381.07 mn, from EGP 300.95 mn in the same period last year, the company said in a statement to the EGX (pdf). Revenues increased to EGP 1.8 bn compared to EGP 1.4 bn during the same period last year.

Real estate developer Madinet Nasr Housing & Development reported a consolidated net profit of EGP 631 mn during 9M2019, down from EGP 869.1 mn during the same period last year, the company said in a bourse filing (pdf). Revenues also fell to EGP 1.4 bn during the first nine months of the year, from EGP 2.1 bn in 9M2018.

Abu Qir Fertilizers net profits were more or less flat in FY2018-2019, which ended on 30 September 2019. Profits fell a marginal 0.17% to EGP 751.6 mn, from EGP 752.8 mn in the previous fiscal year, according to a bourse disclosure (pdf). Revenues fell 7.66% to EGP 1.98 bn, from EGP 2.15 bn.

Correction: 6 November 2019

An earlier version of this story incorrectly said that CI Capital’s net profit increase 26.2%, and that revenues increased to EGP 1.7 bn from EGP 1.4 bn. These figures have been corrected.

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