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Monday, 15 November 2021

e-Finance profits fall 15% in 3Q2021

e-Finance saw its net income dip 20% y-o-y in 3Q2021 to EGP 99.3 mn, according to the company’s first quarterly financials (pdf) as a publicly traded company. Revenues rose around 25% y-o-y during the quarter to EGP 395.2 mn. On a nine-month basis, net income rose 35% y-o-y to EGP 374.8 mn during 9M2021 while revenues rose 59% y-o-y to reach EGP 1.3 bn. The state-owned fintech platform listed on the EGX last month, raising some EGP 5.8 bn in the IPO. That might not be all for e-Finance, with the firm currently deliberating selling shares in two of its subsidiaries, Khales and e-Cards.

Shares in the state-owned tech firm closed down 7.4% at EGP 19.17 as of the close of trading yesterday, a sell-off that, according to one analyst who asked to remain anonymous, was triggered by the disappointing results. Still, the company’s shares are handily above water, having made their market debut at EGP 13.98.

More is riding on end-of-year financials: Investors will get a fuller picture come the new year about whether the high expectations generated during the IPO process are justified. Over the next couple of quarters, the market will look to see progress from the company on its advertised plans (projects on e-everything from e-invoicing to e-gates), according to our source.

EDITOR’S NOTE- This story was updated on 15 November to correct net income figures for 3Q2021 and 9M2021. 

Egypt Kuwait Holding’s net income rose 60% y-o-y in 3Q2021 to USD 46.8 mn, according to the company’s quarterly earnings release (pdf). Revenues during the quarter came in at USD 211.6 mn, up 45% from 3Q2020. Top-line growth was fuelled by a 60% surge in revenues from the company’s fertilizers and petrochemicals business, which benefited from the boom in commodities and urea prices. EKH’s energy segment saw revenues grow 12% during the three-month period.

Share conversion “well received”: “EKH’s recent optional conversion of its listed shares on the EGX was well received by the market, with institutional investors opting to convert 83% of their holdings in EKH’s shares from USD to EGP,” CEO Sherif El Zayat said. In total, 68% of the company’s EGX shares were converted to EGP.

Ibnsina Pharma reported EGP 5.6 mn in quarterly net income for 3Q2021, up 20% y-o-y increase from the same period last year, according to the company’s earnings release (pdf). Its net revenues for the same period increased by 16.4% y-o-y to EGP 5.6 bn. Separately, the company is planning to increase its capital to EGP 280 mn from EGP 240 mn through new shares, which will be put up for a vote at an extraordinary general assembly meeting (pdf) later this month.

Odin Investments’ net losses widened in 3Q2021 to EGP 374k, falling 6.4% y-o-y, according to the company’s financials (pdf). The company’s revenues also dipped 9.7% y-o-y to EGP 4.5 mn during the quarter.

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