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Monday, 17 May 2021

Earnings Watch: Elsewedy Electric, Contact Financial, Beltone

EARNINGS WATCH- Elsewedy Electric’s net income rose 75% to EGP 700.1 mn in 1Q2021, up from EGP 400 mn in the same period last year, the company said in its quarterly earnings statement (pdf). Topline growth was also solid, with quarterly revenue growing 14% to EGP 12.3 bn from EGP 10.8 bn in 1Q2020.

The strong performance was supported by its wires and cables business, which saw sales increase more than a third to EGP 6.3 bn, accounting for more than half of the company’s total revenues. Sales of other electrical products also increased by 18% compared to the first quarter of last year, while the renewables business more than quadrupled in size. Turnkey projects — which in 1Q2020 made up almost half of the company’s revenue — fell 8% to EGP 4.5 bn.

Emerging from covid: “We see a strong recovery in activity and price points across key sectors and have been able to leverage these developments,” said CEO Ahmed El Sewedy. “If 1Q2021 is a good indication, then we are optimistic for the year as a whole and look forward to further rapid growth in revenues,” El Sewedy added. The company will be in the market for “targeted acquisitions that can quickly foster synergies” across its operations and “engender further efficiencies at all links” of the value chain, El Sewedy noted.

Contact Financial Holding’s net income rose 21% to EGP 109 mn in 1Q2021, from EGP 90 mn in the same period in 2020, according to its earnings statement (pdf). The company saw strong portfolio growth during the three-month period, rising 34% to EGP 8.7 bn, and generating an operating income of EGP 261 mn. The NBFS player’s ins. arm saw its revenues rise 67% to EGP 151 mn, while its operating income soared 134% to EGP 68 mn, thanks to an increase in gross written premiums which rose by two-thirds.

Beltone Financial has finally escaped the red, reporting a bottom line in the black for the first time in three years today. The company produced a net income of almost EGP 3.8 mn in 1Q2021, up from a loss of EGP 8.44 mn a year earlier, the company said in its earning release (pdf). Operating revenues increased 9% to EGP 76.3 mn, compared to EGP 69.8 mn in the previous year. The company had been turning losses following its purchase of New York-based brokerage Auerbach Grayson in 2016. Beltone offloaded its majority stake in the firm earlier this year to Indonesian financial services firm PT MNC Kapital.


The EGX30 fell 0.9% at today’s close on turnover of EGP 1.6 bn (22.9% above the 90-day average). Foreign investors were net sellers. The index is down 1.57% YTD.

In the green: Fawry (+5.0%), GB Auto (+4.0%) and Oriental Weavers (+2.9%).

In the red: CIB (-3.9%), ElSewedy Electric (-3.5%) and Orascom Development (-2.2%).

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