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Sunday, 12 September 2021

Qalaa losses ease in 2Q2021 on stronger revenues

Qalaa Holdings’ losses eased to EGP 401.5 mn in 2Q2021 from EGP 712.1 mn in the same period last year, according to the company’s earnings release (pdf). Revenues were up 37% y-o-y to hit EGP 10.2 bn in the April-June period, extending pandemic-era growth that saw the company’s top line almost double y-o-y in 2Q2020 to hit EGP 7.4 bn. The company saw a smaller net loss of EGP 224.5 mn in 2Q2019, before the pandemic hit.

The improved result came as Qalaa companies recorded growth in revenues across the board, including the Egyptian Refining Company (ERC), which saw a 52% y-o-y increase in revenue despite a 22-day halt for scheduled maintenance. “Despite the lingering impact of covid-19 across our markets, our platforms were able to capitalize on slowly improving market conditions and a gradually easing trade environment,” said Qalaa chairman and founder Ahmed Heikal.

Heikal said that the revenue growth was largely driven by “solid performances” from Qalaa companies including Taqa Arabia, which capitalized on demand for natural gas to grow its revenue by 27% y-o-y. National Printing and ASCOM saw exports increase as international trade picked up and port restrictions eased.

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