DELTA SUGAR
SUGR
Financial ResultsNegative News
Delta Sugar's Profit Plunge: Rising Costs Bite into H1 2024 Results
Delta Sugar faces significant profit decline in H1 2024 due to soaring expenses and reduced revenues, prompting investor caution.
July 31, 2024 at 8:36:00 AMScore: 65

Delta Sugar reported a sharp 14% year-on-year decline in net profits after tax, dropping to EGP 940.04 million in the first half of 2024 from EGP 1.08 billion in the same period last year. Revenues fell 43% annually to EGP 2.45 billion, down from EGP 4.32 billion, with basic earnings per share (EPS) sliding to EGP 5.38 from EGP 6.23. The company attributed the slump to soaring beet prices, interest expenses of EGP 66 million, increased overdrafts for supplier payments, and weaker sales. Q1 2024 saw an even steeper 33% YoY profit drop to EGP 216.75 million.
Recommended Actions
- Hold off on new investments until cost-control measures are clarified.
- Monitor Q3 2024 results for signs of recovery.
- Review Delta Sugar's debt management strategies.
- Compare with industry peers to assess relative underperformance.
- Consult financial advisors for portfolio rebalancing.
Negative Aspects
- 14% YoY net profit decline
- 43% revenue drop
- Increased beet prices and interest expenses
- Overdraft reliance for supplier payments
- Weaker sales performance