Sunday, 23 May 2021

Fawry sees bottom line surge in 1Q2021

The EGX30 rose 0.75% at today’s close on turnover of EGP 1.29 bn (2.2% above the 90-day average). Foreign investors were net sellers. The index is down 0.35% YTD.

In the green: ElSewedy Electric (+4.8%), Heliopolis Housing (+3.3%) and Sodic (+1.9%).

In the red: Edita (-3.7%), Oriental Weavers (-1.9%) and Abu Qir Fertilizers (-1.4%).

EARNINGS WATCH- Payments giant Fawry’s bottom line soared 146% y-o-y to EGP 76.1 mn in 1Q2021, up from EGP 31 mn in the same quarter last year, the company said in its earnings release (pdf). Revenues rose 35% to EGP 349 mn from EGP 258 mn in 1Q2020. “Fawry has made an impressive start to 2021 … [as the] diversification of the Company’s revenue base continues apace, led by our Banking Services segment, which saw its revenues grow more than twofold [in 1Q2021],” CEO Ashraf Sabry said. All the company’s business segments expanded during the quarter, backing its continued “strong top-line growth,” the earnings release reads.

Looking ahead: “We aim to expand the Fawry ecosystem’s operational reach and are open to all avenues including organic growth and the acquisition of minority stakes in one or more consumer-facing target companies,” Sabry said. The plan will involve offering new “tailored solutions designed for players in the food & beverage and social commerce digital platforms” to build on the company’s success in the “retail and gig economy sectors,” he added.

MARKET NEWS- Sodic shareholders are entitled to coupon payments of EGP 0.55 per share. They can be claimed through clearing house MCDR, which has branches in most major banks operating in Egypt, starting 9 June, for existing shareholders or those buying new shares before the end of the trading day on 6 June 2020, according to an EGX filing (pdf).

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