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Thursday, 14 May 2020

Earnings watch: ElSewedy Electric profits halve in 1Q as covid-19 hits operations

EARNINGS WATCH- ElSewedy Electric profit halve in 1Q as covid-19 hits operations: ElSewedy Electric’s quarterly profits plunged in 1Q2020 as weaknesses in the broader economy caused by the coronavirus impacted its operations, the company said in its quarterly earnings statement yesterday (pdf). The company reported profits of EGP 400 mn during the first quarter, down 58% from 1Q2019. Revenues fell 4% year-on-year to EGP 10.8 bn. The company’s top line was largely supported by growth in turnkey projects, which rose 54.2% y‐o‐y to reach EGP 4.9 bn in 1Q2020. The slowdown affected key segments and was mostly attributable to the impact the covid-19 pandemic has had on the wider economy, with which these segments’ performance “tends to be highly correlated,” said CEO Ahmed El Sewedy.

ElSewedy “fully confident” about navigating the crisis: “Thanks to a solid liquidity position, management is fully confident of ElSewedy Electric’s ability to meet any and all upcoming obligations. The strength of our balance sheet affords us room for flexibility and will be key in seeing us through these turbulent times,” El Sewedy said. “We have striven to keep our talented team fully intact recognizing that their ability will be key in allowing ElSewedy to stage as rapid a recovery as possible from the circumstances.”

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