The Clap:
Elsewedy Electric reported a healthy growth to its bottom and top line in the first quarter of the year, raking in just shy of EGP four billion in net income during the three months ending in March.
Revenues:
The company’s top line surged 35.7% YoY during Q1 2024 to reach EGP 45.25 billion on the back of strong revenues in their prime segments, and partly due to currency translation and market dynamics enabling Elsewedy to command better prices for certain products in EGP, it said. In the wires and cables segment, revenue grew by 56% YoY in Q1 2024, making it the primary growth driver for the group.
Gross profit:
Elsewedy’s gross income rose to EGP 9.9 billion, representing a 61.9% YoY hike from Q1 2023 as a result of positive impact from currency movements, coupled with improved supply conditions and increased demand across markets including Saudi Arabia, Algeria, and Egypt.
Operating profit:
The company’s earnings before interest and tax rose 30.6% YoY to EGP 5.1 billion, it noted.
Net profit:
The firm’s bottom line after minority interest increased 37.0%YoY to reach EGP 3.98 billion in Q1 2024, on the back of increased revenue and a foreign exchange gain from the revaluation of foreign currency receivables from international operations.
Remember, a big acquisition of the company is in the works:
Earlier this month, Abu Dhabi-based Electra Investment Holding snapped up shares in Elsewedy Electric at USD 1.05 (EGP 49.58) per stock. The offer will continue through to 9 July as part of a plan to acquire up to 24.50% of the EGX-listed firm. Electra’s bid marked an 11.37% premium to Elsewedy Electric’s share price of EGP 44.51 (USD 0.94) at market close Thursday, May 30th.
