EARNINGS WATCH- Sodic reported a net profit of EGP 28 mn in 1Q2020, down from EGP 161 mn in 1Q2019. Revenues came in at EGP 429 mn from EGP 941 mn in the first quarter of 2019. Low interest income following 750 basis points worth of rate cuts by the central bank since January 2019, along with lower revenues due to a lower number of deliveries, weighed on the company’s bottom line, it said in its earnings release (pdf). “Lockdowns and mobility restrictions decrease the urgency for customers to come in for handovers,” Managing Director Magued Sherif said. The upmarket real estate developer disbursed EGP 5 mn so far for donations and initiatives to support efforts against covid-19 and has redirected its marketing resources to support the cause, Sherif noted.

Looking forward: “We are lucky to operate in a sector with very strong local demand fundamentals and we continue to believe in the long-term drivers of growth in our market,” Sherif added in a note to the earnings that’s worth reading in full. “We are looking [at] … a challenging but rewarding year ahead as we continue to invest in our brand and ensure we distinguish ourselves in this market.”

Egypt Kuwait Holding (EKH) posted a net profit of USD 40.7 mn in 1Q2020, up 15% from USD 37.5 mn a year earlier, according to the company’s earnings release (pdf). Revenues increased by nearly USD 20 mn y-o-y to reach USD 160.9 mn. Growth came primarily from the company’s energy and energy-related segment, which saw revenues rise an “impressive” 46% y-o-y to USD 51.8 mn.

Looking forward: EKH is “optimistic” in the long run about its long-term growth prospects, and expects to see “an overall positive performance” in 2Q2020 despite the second quarter of the year typically being a low season for its businesses, Chairman Moataz Al Alfi says. The company also expects to maintain its growth momentum despite pressure from the covid-19 pandemic, particularly after managing to “buck the prevailing downtrend across all businesses” due to the crisis.

B Investment’s consolidated net profits after tax were up 6.2% y-o-y in 1Q2020 to EGP 37.7 mn, from EGP 35.5 mn in 1Q2019, the company said in a regulatory filing (pdf). The company’s revenues for the quarter increased 8% y-o-y to EGP 54.2 mn, from EGP 50.2 mn in the first quarter of last year.

Orascom Investment Holding reported a net loss of EGP 425.2 mn in 2019 after making a EGP 865 mn profit the previous year, according to the company’s financial statements (pdf). Revenues fell 12% to EGP 1.17 bn during the year from EGP 1.33 bn in 2018. “Going forward the covid-19 outbreak may negatively impact amongst others our supply chain, workforce, operations, demand of our end markets and liquidity,” the statement said. “Based on our current knowledge and available information, we do not expect covid-19 to have an impact on our ability to continue as a going concern in the foreseeable future.”

Raya Holding for Financial Investments reported losses of EGP 69 mn during 1Q2020, after making a EGP 26 mn loss during the same period last year, according to the company’s quarterly financials (pdf). Revenues during the period rose slightly to EGP 2.4 bn, compared to EGP 2 bn last year.