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Wednesday, 13 November 2019

Earnings watch: EFG Hermes, Suez Cement, Tourah Cement, Raya Contact Center, AT Lease

EARNINGS WATCH- EFG Hermes’s net profit after tax and minority interest rose 34% to EGP 358 mn in 3Q2019, compared to EGP 279 mn in 3Q2018, according to the company’s earnings release (pdf). Revenues grew 25% to reach EGP 1.2 bn during the quarter. On a nine-month basis, the regional financial services corporation’s net profit after tax and minority interest surged 45% to EGP 1 bn in 9M2019, while revenues reached EGP 3.5 bn.The strong growth was driven by both the investment bank and non-banking financing businesses. The third quarter saw EFG close eight transactions both locally and regionally worth a combined USD 1.4 bn.

Looking ahead: “Our ambition is to solidify … our leadership in newly entered frontier emerging markets by growing our market shares and continuing to provide our world-class advisory services to key frontier companies seeking ECM, DCM and M&A transactions,” Group CEO Karim Awad said, noting that EFG has made “significant progress in our strategy of product diversification and geographic expansion.”

Cement producers Suez Cement and Tourah Cement report continued losses in 9M2019: Suez Cement reported a net loss of EGP 736.8 mn during 9M2019, compared to profits of EGP 267.3 mn during the same period last year, according to the company’s financial statement (pdf). Tourah Cement, which is 66.12%-owned by Suez Cement, reported a net loss of EGP 516.6 mn during the first nine months of the year, a 26-fold increase from its 9M2018 losses of EGP 19.7 mn, according to a bourse filing. Suez Cement suspended operations at Tourah Cement in May, citing “deteriorating financial results and the accumulated losses.”

Al Tawfeek Leasing’s net profits rose 2.9% in 9M2019 to EGP 52 mn compared to EGP 50.565 mn in the same period last year, the company said in a bourse disclosure (pdf). The total revenues during the same period increased to EGP 383.9 mn compared to EGP 360.5 mn in the same period with a growth rate of 6.5%.

Raya Contact Center’s net profit dropped 33% y-o-y to EGP 93 mn in 9M2019, down from EGP 138.7 mn in the same period last year, according to a bourse disclosure (pdf). The company's revenues also fell from EGP 623.55 mn from EGP 672.19 mn.

Sidi Kerir Petrochemicals Company’s net profits also fell 43.5% y-o-y in the first nine months of 2019 to EGP 521 mn down from EGP 922 mn in the same period last year, according to its disclosure (pdf).

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