Earnings watch: CIRA reports 9M2019-2020 results, Arafa Holding reports 1Q2020 earnings
EARNINGS WATCH- CIRA net profits, revenues jump in 9M2019-2020: Private sector education outfit CIRA reported a 32% y-o-y increase in net profit to EGP 330.4 mn in the first nine months of its fiscal year, which ends on 31 August, according to the company’s earnings release (pdf). Net revenues soared 54% y-o-y during the period, coming in at EGP 991.9 mn, and gross profits were also up 49% y-o-y to EGP 630.9 mn. The strong growth in revenues, which came despite the challenging climate, is “the direct result of [the company’s] multi-pronged approach to tackling this unprecedented crisis,” including a quick and seamless transition to an online learning framework in March, CEO Mohamed El Kalla said. The pandemic has also not slowed down CIRA’s expansion plans, El Kalla noted, with construction at the Regent British School now 78% complete.
Looking ahead: CIRA expects to close out the final quarter of its fiscal year and enter the new academic year in September with momentum to continue delivering growth, particularly with the company’s “proactive approach to the crisis, our robust business model, and the favorable fundamentals underpinning the Egyptian education sector,” El Kalla said.
Arafa Holding posted a net loss of USD 144k in 1Q2020 (the company’s fiscal year begins in February) after reporting USD 1.6 mn in profits in 1Q2019, according to an EGX disclosure (pdf). Revenues declined 18% y-o-y to record USD 40.28 mn, down from USD 49.27 mn during the same quarter last year. The company attributed the drop to the covid-19 lockdown measures, which saw retail outlets shortening their work hours.