The Clap
Delta Sugar Company unveiled its amended 2023 earnings.
Revenues:
In 2023, Delta Sugar Company earned EGP 7.02 billion, an 86.4% YoY increase.
Gross Profit:
EGP 1.92 billion in 2023, showing an 83.8% surge YoY.
Gross Profit Margin:
Representing the percentage of revenue that remains after subtracting the costs of goods sold — declined to 27.3% in 2023, from 27.7% in 2022. Usually an indicator of the company’s efficiency in managing costs and generating profits, it saw no significant change YoY.
Net Profit:
After deducting all expenses, including taxes and interest, net profit for 2023 was EGP 1.59 billion, a substantial 87.2% increase YoY.
Net Profit Margin:
It rose to 22.7% in 2023 from 22.6% in 2022. No significant difference YoY, but usually, this helps investors assess if a company’s management is generating enough profit from its sales and whether operating and overhead costs are under control.
The Main Drivers:
The company attributed the increase in net profit to the following:
- The sugar market situation (low supply and high demand), allowed the company to sell at the start of the production seasons (usually not the case), which generated cash for the operations without debt.
- The company increased its production of sugar, its by-products, as well as boosted sugar refining operations
- A dynamic sales policy that led to rapid sales at appropriate prices.
Déjà Vu?
The main drivers they stated are quite similar to those in their 2022 results.
