What:
EGX-listed B Investments Holdings navigated a turbulent 2023. Their net income sank to EGP 694 million, tumbling 48% from the previous year’s high.
Why:
The firm’s 2022 earnings were inflated by a hefty EGP 1.4 billion from selling off Giza Systems. Their 2023 journey was less about blockbuster deals, with revenues also dipping 62% to EGP 569 million.
Diving into the Details:
B Investments Holding posted a consolidated net profit of EGP 693.8 million in 2023, sinking down from EGP 1.33 billion in 2022. A significant part of their 2023 earnings – a whopping EGP 583 million – came from foreign exchange (FX) gains.
Claps Class – FX Gains 101:
When a company holds assets or earns in a currency that strengthens against its home currency, it can book a profit simply because of exchange rate movements. For B Investments, this happened due to the devaluation of the EGP last year.
Assets:
The company’s total assets shrank slightly by 16% to EGP 3.6 billion.
