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Wednesday, 17 February 2021

Earnings watch: Sarwa Capital, Speed Medical, Kima announce 2020 results

Sarwa Capital’s net profit eased 9% to EGP 353 mn in 2020, from EGP 389 mn the year before, the company said in a statement (pdf) yesterday. Strong 4Q growth — EGP 159 mn, up 46% y-o-y — put the company’s finances back on track after a challenging first nine months of the year saw profits fall 30% thanks largely to the impact of covid-19. The company saw strong portfolio growth during the 12-month period, rising 17% y-o-y, and generating an operating income of EGP 942 mn, up 7% from 2019. The NBFS player’s new ins. arm saw its revenues rise almost 150% to EGP 322 mn, driven by a surge in gross written premiums.

What they said: “We are delighted to report these great results in such a challenging year … During the year we have consolidated our financing offerings under one brand and approach, with the country’s first consumer finance license, continued to build our capabilities in insurance, raised an unprecedented amount from the debt capital markets with an array of instruments, as well as fully prepared for and applied new accounting and regulatory rules,” the company said.

Sarwa is no longer Sarwa: Shareholders approved changing the company’s name from Sarwa Capital Holding to Contact Financial Holding, in what it said would “better reflect the composition of the business.”

Speed Medical’s net profit more than quadrupled in 2020 to EGP 79.2 mn, up from EGP 17.1 mn a year ago, according to an EGX filing (pdf). The strong bottom line growth was underpinned by a doubling of annual revenues, which reached EGP 174 mn during the 12-month period, and the launch of the company’s Prime Speed for Medical Services subsidiary in March last year, which provided almost half of its net income.

Kima turns to losses in 2020: The Egyptian Chemical Industries (Kima) reported net losses of EGP 631.2 mn for 2H2020, despite seeing impressive revenue growth during the period, according to the company’s unaudited financial statements (pdf). The company carried over EGP 1.4 bn in prior losses, causing it to slide into the red even as revenues surged almost 600% to EGP 691.1 mn.

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