EZZ STEEL
ESRS
Financial ResultsNegative News
Ezz Steel Reports Dramatic Shift to Losses Amid Rising Costs
Ezz Steel faces significant financial downturn in 2023 with a consolidated net loss despite rising sales.
April 15, 2024 at 3:23:00 PMScore: 30

Ezz Steel, a Cairo-based steel giant, faced a stark financial reversal in 2023, swinging to a consolidated net loss of EGP 716.53 million after taxes—a sharp decline from a EGP 6.64 billion profit in 2022. Despite a 70% surge in consolidated net sales to EGP 142.91 billion, soaring costs eroded gains, with sales expenses jumping to EGP 103.60 billion from EGP 65.20 billion. Basic and diluted loss per share hit EGP 0.21, down from EGP 7.98 earnings per share in 2022. Standalone profits also dwindled, dropping to EGP 1 billion from EGP 1.05 billion, even as standalone sales climbed to EGP 27.63 billion. The first half of 2023 alone saw a consolidated net loss of EGP 809.77 million, contrasting sharply with a EGP 4.12 billion profit in the same period the prior year.
Recommended Actions
- Monitor Ezz Steel's cost management strategies closely
- Avoid short-term trading until financial stability improves
- Review Q1 2024 results for recovery signs
- Compare with industry peers' performance
- Consult financial advisors before adjusting holdings
Positive Aspects
- 70% surge in consolidated net sales to EGP 142.91 billion
- Standalone sales growth to EGP 27.63 billion
Negative Aspects
- Consolidated net loss of EGP 716.53 million
- 70% increase in cost of sales year-over-year
- Basic/diluted loss per share of EGP 0.21