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Ezz Steel’s 2023: A tough year despite sales soaring by 70% YoY

Currency troubles take a heavy toll, flipping profits to losses

What:

2023 wasn’t exactly kind to Ezz Steel, Egypt’s heavyweight in the steel industry. Despite recording a substantial EGP 143 billion in sales — a 70% YoY surge — the company faced a tough year financially, ending with a net loss of EGP 717 million.

This downturn contrasts sharply with 2022, when the company reported a net profit of EGP 6.6 billion, highlighting the significant impact of currency fluctuations and economic conditions on its operations.

Why:

Most notably, a whopping EGP 30.9 billion got wiped out due to currency exchange losses, due to the EGP’s depreciation during last year.

Some Context:

Ezz Steel is the biggest steel producer in Africa and the Arab world, with four major production hubs cranking out nearly 7 million tons of steel products a year.