Earnings watch: Orascom Development Egypt, GB Auto, Credit Agricole, Raya Holding, AMOC,
EARNINGS WATCH- Orascom Development Egypt (ODE) reported net profits of EGP 107.4 mn in 3Q2019, up from EGP 89.5 mn in 3Q2018. The company’s revenues rose to EGP 1 bn from EGP 868.1 mn during the same quarter last year, according to the company’s financial statements (pdf). In 9M2019, ODE more than doubled its net profits, increasing 82.9% y-o-y to EGP 501 mn. Revenues also increased 39.4% during the first nine months of the year to EGP 3.3 bn from EGP 2.3 bn on the back of enhanced operational performance across all business segments. Looking ahead, ODE is looking to further increase its revenues through new real estate sales, capitalizing on its O West project as well as El Gouna and Makadi Heights.
GB Auto posted a net loss of EGP 8.3 mn in 3Q2019 as revenues dropped 13.1% y-o-y. On a q-o-q basis, however, revenues rose 19.7% to EGP 6.7 bn, according to an earnings release (pdf). The company’s 9M2019 losses hit EGP 1.2 mn, after having turned a profit in 1Q2019. Revenues during the first nine months of the year dipped 1.5% y-o-y to EGP 18.3 bn. The company’s Auto & Auto-Related (A&AR) segment accounted for the bulk of revenues, which accounted for EGP 5.7 bn of revenues in 3Q2019.
Impact of zero customs on EU cars narrows: The company maintained growth in its top-line models despite the elimination of customs on cars of European origin, mainly supported by Egypt’s passenger cars and two- and three-wheelers segments in 3Q2019. GB Auto has also reduced its inventory of passenger car models facing stiff competition from European, Moroccan and Turkish counterparts that now have a pricing advantage, GB Auto CEO Raouf Ghabbour said. But the new regulations did damage the company’s bottom-line products, forcing them to liquidate 90% of its loss-making inventory.
Looking ahead: Ghabbour sees margins normalizing heading into 2020 despite the regulatory changes resulting in halting licenses for three-wheelers. “Going forward we are confident that the strong fundamentals that underpin the Egyptian and Iraqi markets will continue to help drive our operational and financial performance as our volumes and sales continue to grow and as margins begin to normalize,” Ghabbour said.
Credit Agricole Egypt’s net profits increased to EGP 1.9 bn in 9M2019 from EGP 1.7 bn in 9M2018, according to an EGX disclosure.
Raya Holding for Financial Investments reported net losses of EGP 103 mn in 9M2019, increasing from losses of EGP 5.63 mn in 9M2018, the company said in a bourse disclosure (pdf).
Alexandria Mineral Oils profits plunge 87.4% y-o-y in 3Q2019: Alexandria Mineral Oils’ (AMOC) net income dropped to EGP 31.8 mn in 3Q2019, compared to EGP 253.1 mn in 3Q2018, the company said in a bourse filing (pdf). Sales dropped during the same period to EGP 3.125 bn against EGP 4.105 bn last year.