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Monday, 9 November 2020

Earnings watch: CIRA, Oriental Weavers, Credit Agricole

EARNINGS WATCH- CIRA revenues cross EGP 1 bn mark in FY2019-2020: Private sector education outfit CIRA reported a 54% y-o-y rise in net revenues to EGP 1.09 bn in their 2019-2020 fiscal year, which ends on 31 August, according to the company’s earnings release (pdf). Net profit for the year rose 21% during the year to EGP 267.3 mn, while gross profits were up 46% y-o-y to reach EGP 633 mn. Top line growth was driven by a 50% upswing in tuition revenue, which climbed to EGP 939.6 mn on increasing enrollment and higher tuition fees. The company’s K-12 segment performed particularly well, seeing revenues rise by 59% to EGP 441.6 mn. Rising enrollments also increased the company’s revenue from admissions and dorm fees, helping it to shrug off the reduction in bus fees caused by school closures earlier this year.

Covid fails to dent enrollment: The rate of enrollment outpaced the company’s expansion in both its K-12 and higher education segments, despite the pandemic causing widespread disruption in the sector earlier in the year. Enrollment at CIRA’s Badr University expanded 31%, while the company’s 20 K-12 schools saw student numbers grow by 9%.

Looking ahead: CIRA expects to deliver “solid growth” during the new academic year and will explore new ventures to allow the company to continue providing quality education, CEO Mohamed El Kalla said. The company will continue to rely on hybrid learning at its schools, and will maintain high safety standards to protect staff and students, he said.

Oriental Weavers net profit inched up 1.8% in 9M2020 to EGP 608 mn, according to the company’s earnings release (pdf). Revenues were down 12.1% y-o-y, clocking in at EGP 6.67 bn as opposed to EGP 7.58 bn the previous year.

Credit Agricole saw its net profit plunge by 44.4% in 9M2020, dipping to EGP 1.04 bn compared to EGP 1.86 bn, according to the bank’s earnings release (pdf).

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