Cleopatra Hospitals Group’s (CHG) net income eased 5% y-o-y to EGP 102.4 mn in 1Q 2022, according to the company’s latest earnings release (pdf). Revenues rose 1% y-o-y to EGP 636.9 mn during the quarter, despite a fall in covid-related revenues as the pandemic receded.

The pandemic is fading out of the picture: The group’s revenues from covid-related services fell 50% during the quarter due to falling infection rates, but this was offset by a 16% rise in revenues from other areas of the business, the company said. Revenues from the company’s surgery and outpatient services segments both saw strong growth during the quarter, and inpatient services continued to be the biggest contributor to overall revenues, despite falling 16% y-o-y due to declining numbers of covid patients. “We delivered revenues well in excess of EGP 600 mn, significantly exceeding pre-pandemic levels, with strong margins at all levels of profitability, above our pre-pandemic averages,” said Group CEO Ahmed Ezzeldin.

Covid-only hospitals phased out: The company’s only remaining dedicated covid facility, Queens Hospital, recorded a 38% y-o-y drop in revenue on the back of the decline in cases and will now be closed until 2023 as the company repurposes it post-pandemic.

The company predicted supply chain snarls and rising prices going into the quarter and built up its inventory ahead of time, CHG said.

Looking ahead: More expansion. “We are actively exploring growth opportunities in West Cairo to expand our capacity and footprint further,” said Ezzeldin. Renovations also continue at the group’s 200-bed East Cairo brownfield project, Sky Hospital, which it expects to complete by the end of 2023.

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Macro Group saw its net income nearly triple y-o-y to EGP 30.7 mn in 1Q 2022, up from EGP 10.9 mn in the same quarter last year, according to the company’s earnings release (pdf). Revenues grew 14% y-o-y to EGP 134.9 mn as the firm raised prices and launched higher-priced products.

Why the big jump in income? The cosmeceutical firm put aside some EGP 13.9 mn of its 1Q 2021 earnings for provisions (finance-speak for a rainy day fund, or anticipated liabilities). No provisions were put aside in the first quarter of this year, according to the release.

Higher pricing boosted revenues: The group attributed the rise in revenues to a 13% annual increase in average pricing during the period and a 2% rise in sales volumes. Macro has been raising prices through “direct price hikes, product face-lifts, rebranding, and the launch of innovative higher-priced products, particularly under Macro’s premium brands,” the release read. The group introduced four new products during 1Q 2022, including its first anti-ageing skincare product — a segment in which it hopes to expand further.

REMEMBER- Macro made its EGP 1.3 bn debut on the EGX during the first quarter. One-time costs associated with the company’s IPO and employee stock ownership plan (ESOP) stood at EGP 6.1 mn.

Inflationary pressures could bite soon: The devaluation of the EGP and inflation, which rose to a near three-year high in April, are set to hit the group’s operating profitability in the coming months, the release said.

But current conditions also present an upside: “We believe the currency devaluation will be uniquely beneficial to Macro in terms of demand, particularly among our continuously expanding premium lines, with Macro offering lower-priced substitutes to imported products which have since become increasingly expensive,” said Chairman Ahmed Elnayeb.