QALA FOR FINANCIAL INVESTMENTS
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Financial ResultsNeutral News
Qalaa Holdings Posts 17% Revenue Growth in 2023 Amid Profit Decline
Qalaa Holdings reports mixed 2023 results: 17% revenue growth but lower profits due to margin pressures and regional conflicts.
May 7, 2024 at 3:05:00 PMScore: 72
Qalaa Holdings reported consolidated net profits of EGP 11.8 billion for 2023, down from EGP 18.74 billion in 2022. Despite a 17% YoY revenue surge to EGP 97.13 billion, profitability was impacted by margin pressures at the Egyptian Refining Company (ERC) and disruptions at Takamol Cement due to the Sudan conflict. Standalone losses widened to EGP 2.48 billion, with loss per share rising to EGP 1.36. Total assets grew to EGP 160.62 billion, while debt restructuring agreements with banks and creditors are expected to improve future profitability. EPS attributable to shareholders increased to EGP 3.58 from EGP 0.69 in 2022.
Recommended Actions
- Hold Qalaa stock pending debt restructuring outcomes
- Monitor Sudan conflict impact on Takamol Cement
- Compare Qalaa's margins with sector benchmarks
- Review management's deleveraging progress
- Assess ERC's margin recovery potential
Positive Aspects
- 17% revenue growth to EGP 97.13bn
- Debt restructuring agreements with creditors
- Total assets up to EGP 160.62bn
- EPS improvement to EGP 3.58 from EGP 0.69
Negative Aspects
- YoY profit decline from EGP 18.74bn to EGP 11.8bn
- Widening standalone losses to EGP 2.48bn
- ERC margin contraction from 2022 peaks
- Takamol Cement disruptions due to Sudan conflict
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