Earnings Watch: Orascom Development Egypt, Rameda, Fawry, B Investments, Raya, Beltone, ADIB, Oriental Weavers, GSK
EARNINGS WATCH- Rameda Pharma reported 54% bottom line growth in 2Q2020, with net profits rising to EGP 19.9 mn from EGP 12.9 mn in 2Q2020, according to a company earnings release (pdf). Revenues rose 5.6% during the three-month period to EGP 205 mn despite private sales falling 4% y-o-y due to the covid-19 pandemic. Net profits more than doubled y-o-y in 1H2020, increasing to EGP 43.8 mn from EGP 21 mn from the same period last year. The company’s top line shrugged off a 50% fall in export volumes to grow 13.8% to EGP 437.5 mn in the first half. “Our strong performance demonstrates the breadth and resilience of our portfolio, as well as the vital role of the generic medicines we supply,” said CEO Amr Morsy. “We expect our new launches and acquisitions, combined with the recent easing of social distancing measures, to further drive Rameda’s growth momentum for the remainder of 2020,” CFO Mahmoud Fayek said.
Fawry profits surge in 1H2020: Fawry’s net profit increased 165% y-o-y in 1H2020, reaching EGP 70.5 mn from EGP 26.5 mn last year, according to a company earnings release (pdf). Revenues rose 47.1% to EGP 549.3 mn, up from EGP 373.3 mn a year earlier. The company said that it is seeing “favorable market conditions where digital transformation and electronic payments are becoming priorities for the Government, the Central Bank” as well as businesses and consumers. CEO Ashraf Sabry said the company is now looking at the prospects of a capital increase to finance future growth of “mobile services, omni channel acceptance and integrated supply chain digital solutions” and “early indications” are that 3Q2020 will be strong for the company.
CI Capital’s net profits fell almost 14% to EGP 178.8 mn during 1H2020 due to challenging market conditions caused by the covid-19 pandemic, the company said in an earnings release (pdf) yesterday. Revenues fell 10% to EGP 1.0 bn during the six-month period. The company said that despite an “unprecedented year,” it has seen “progress [on] strategic growth initiatives” at its financing platform. “We are confident that market recovery is inevitable, and hence we remain committed to our expansion plans across most of our business lines, as we position ourselves to capitalize on the expected market recovery,” it said.
Beltone Financial reported a EGP 12 mn loss in 2Q2020, narrowing from the EGP 34 mn loss reported in the same period last year, according to a company earnings release (pdf).
Orascom Development Egypt (ODE) reported a 63% y-o-y decline in net profits to EGP 76.5 mn in 2Q2020 from EGP 205.2 mn in 2Q2019, according to the company’s earnings release (pdf). Revenues fell 23% to EGP 1.02 bn during the quarter, down from EGP 1.33 bn during the same period last year. ODE’s top and bottom lines were negatively affected by curfew and travel restrictions starting late February that significantly impacted the group’s hotel operations. As restrictions on tourism ease, ODE is seeing “steady, incremental improvement in [our] hotel reservations pace for July and August” and remains “optimistic for the recovery of the real estate and the tourism sector in the months to come” as people cash in on pent up demand for travel.
Oriental Weavers posted a net profit of EGP 68.4 mn in the second quarter of the year, a 71% dip from EGP 241.5 in 2Q2019, according to an EGX filing (pdf). Sales fell 31% y-o-y to EGP 1.8 bn during the quarter, down from EGP 2.6 bn in the same period last year.
B Investments reported net profits of EGP 85.3 mn in 2Q2020, up 22% from EGP 69.9 mn in the same period last year, according to a company earnings release (pdf).
Raya losses widen in 2Q2020: Raya Holding reported a EGP 26.7 mn loss in 2Q2020, down from a EGP 24.7 mn loss reported in the same period last year, according to a company earnings release (pdf). This came despite slight topline growth during the quarter, with the company reporting EGP 2.4 bn in revenue, up from EGP 2 bn last year.
Abu Dhabi Islamic Bank’s (ADIB) net profits fell 20% during 2Q2020 to EGP 300 mn from EGP 379 mn in the same period last year, according to the company’s earnings release (pdf).
GSK Egypt triples profits in 1H2020: GlaxoSmithKline’s local subsidiary reported profits of EGP 115.96 mn in 1H2020, up 302% y-o-y from EGP 28.8 mn in the first half of 2019, according to a filing to the EGX.
Correction (17/08/2020): A previous version of this article incorrectly stated that B Investments reported net profits of EGP 85.3 mn in 1H2020.