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Wednesday, 24 August 2022

Elsewedy Electric reports record revenues in 2Q 2022

Elsewedy Electric reported record revenues in 2Q 2022 thanks to price hikes and a weaker EGP, it said in its earnings release (pdf) yesterday. Revenues rose almost 50% to EGP 20.4 bn during the April-June quarter, driving a 27% increase in net income, which reached EGP 1.1 bn

Wire and cables + turnkey segments underpinning growth: Revenues from Elsewedy’s wires and cables segment grew 48% y-o-y to reach EGP 9.7 bn in 2Q after it “significantly” raised prices. The devaluation of the EGP also boosted overseas sales, it said. Turnkey project revenues rose 44% y-o-y to reach EGP 8.6 bn due to the company executing on a greater number of projects in Egypt and Tanzania. The two segments together contributed 90% of the company’s revenues.

Elsewedy is future-proofing against global market turmoil: Inventory rose almost 50% to EGP 19.5 bn during the first six months of the year, as the company continues to build up its stock of raw materials to safeguard against global supply-chain disruptions. Elsewedy more than doubled its net debts to EGP 13.1 bn over 1H, in large part due to these contingency stockpiling efforts.

The National Bank of Kuwait Egypt reported a 9% rise in net income to EGP 756.5 mn in 1H 2022, according to a disclosure (pdf) to Boursa Kuwait. The bank’s board recently approved plans to voluntarily delist its shares from the EGX.

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