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Monday, 31 May 2021

Sodic, Ibnsina report higher net incomes, OIH narrows net losses

EARNINGS WATCH- Sodic’s bottom line surged over three-fold in 1Q2021, reaching EGP 100 mn after tax and minority interest, from only EGP 30 mn in the same quarter last year, the upmarket developer said in its earnings release (pdf). Revenues for the quarter increased 60% y-o-y to EGP 849 bn, while gross contracted sales surged 114% to a record EGP 1.85 bn from 333 units sold. The company delivered 120 units in 1Q2021, up from 100 in 1Q2020. Nearly two-thirds of sales were in West Cairo, with newly launched development Karmell contributing to 35% of the quarter’s sales and other projects in the area contributing a further 27%. Some 38% of sales were in East Cairo, led by Sodic East and Villette.

Looking ahead: “We are pleased and excited to deliver an excellent set of results for the first quarter of the year, putting us on track to achieve our annual guidance,” Sodic Managing Director Magued Sherif said. The first quarter of 2021 was “the best … on record for gross contracted sales,” supported by “strong momentum” from the previous three months. The company will remain committed to construction and delivery timelines across its projects, and will continue to invest in a “portfolio of prime assets to deliver on our strategy to create sizable future recurring revenues, Sherif added.

Ibnsina Pharma reported a net income of EGP 50.4 mn in 1Q2021, slightly up from EGP 50.3 mn from 1Q2020, according to its earnings statement (pdf). Sales increased 7% during the quarter to reach EGP 4.75 bn, compared to EGP 4.44 bn in the same quarter in 2020.

The outlook: “Ibnsina Pharma welcomes the new year with optimism and in a position of strength … [as the] the first quarter has set Ibnsina Pharma on a path to even stronger growth,” co-CEO Omar Abdel Gawad said. The company’s priority area looking ahead is to leverage “all possible avenues” for rapid growth and work on “margin-boosting efficiencies through a variety of cost-based measures,” co-CEO Mohamed Abdel Gawad added.

Orascom Investment Holding (OIH) reported a 75.8% drop in its net losses to EGP 103 mn in FY2020, compared to EGP 425 mn a year earlier, according to the company’s earnings release (pdf). Revenues fell to EGP 730.38 mn during the year from EGP 811.4 mn in 2019. Earlier this year, OIH spun off its non-bank financial services holdings into Orascom Financial Holdings through a horizontal demerger.


The EGX30 rose less than 0.1% at today’s close on turnover of EGP 1.77 bn (26.6% above the 90-day average). Foreign investors were net sellers. The index is down 4.9% YTD.

In the green: CI Capital (+13.3%), Export Development Bank (+3.3%) and Orascom Financial Holding (+3.1%).

In the red: Sidi Kerir Petrochem (-2.4%), Ibnsina Pharma (-2.4%) and Cleopatra Hospital (-2.0%).

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