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Sugar and break price increases in the offing?
In a bid to tame trading on the black market, Egypt’s Supply Ministry is considering a cut in the quantities of subsidized sugar it distributes, considering a fall back to the previous two KG allotment per individual it had previously set.
What now:
The Supply Minister noted that the Cabinet is mulling a price hike for ration card holders as it struggles to maintain the current price of EGP 12.60 per kg.
Remember:
Earlier in June, the ministry hiked the price of subsidized sugar from EGP 12.6 to EGP 18 per kilo. This came as the government noted it shells out subsidies of EGP 23 per kilo of subsidized sugar.
In numbers:
As of 2023, Egypt’s sugar consumption rate averaged over 3 million tons per annum, of which about 1 million tons are allocated for ration card holders.
The supply gap:
The country produces less than its consumption levels at about 2.8 million tons. After exports, Egypt has up to a 600,000 ton gap between domestic production and consumption as of last year.
Shortages sent prices to record highs:
Following the end of the sugar beet planting and harvesting season last year, a shortage in domestic sugar reserves sent the commodity’s price soaring 275% YoY.
And led to sugar being labeled a “strategic commodity” at the start of the year:
Cabinet listed sugar as a strategic commodity back in January, imposing restrictions on traders for withholding it from the market. Two months later, the government extended its sugar exports ban until June of this year to shore up national reserves.
Where we stand:
Back in March, government-owned sugar producers hiked their factory prices by up to 33% sending the final consumer price to EGP 35 per kilo, while short supply led private producers to raise prices to as much as EGP 55 per kilo. In spite of the price surge, the government says its sugar supplies will last until February 2025.
A change in bread prices as well?
The Ministry also noted it is devising a plan to change its subsidized bread allotment program, planning a change from the usual daily disbursement of five loaves per individual to a system whereby it would sell the commodity by weight instead..
Acrow Misr more than doubles its profits in 1H
Acrow Misr recorded a 135% YoY rise in net income during the first half of the year, raking in over EGP 538,3 million, compared to the EGP 237.55 million it accumulated during the same period last year.
Revenues:
The company’s top line surged 96.2% YoY during 1H 2024 to reach EGP 2.01 billion.
Remember:
The company recorded a 46.44% YoY rise in net profits during the first three months of the year, bringing in EGP 396.57 million during Q1 while raising its revenues 86.6% YoY to 893,6 million.
EGX-listed Engineering Industries Company (ICON) recorded a 140.5% YoY jump in net income during 1H 2024, raking in EGP 643.8 million
Revenues:
The company’s topline rose 103.6% YoY to EGP 2.79 billion during the six months ending in June.
After a good Q1:
The company had recorded an almost 160% YoY jump in net income during Q1 2024, bringing in EGP 449 million. The company’s topline also rose over 79.3% YoY to EGP 1.276 billion during the three months ending in March.
What else is clapping?
- EGX-listed Maridive & Oil Services Company has been awarded a one-year oil exploration and production contract worth USD 17.8 million. The company is slated to kick off operation on the project in the third quarter of 2024.
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