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June 4, 2025: Earnings + acquisitions

Kima reports dramatic profit jump in 9M, bringing in over EGP 800 mn

Egyptian Chemical Industries Company “Kima” (EGCH) posted a massive 693.6% YoY increase in net profit, reaching EGP 811.65 mn in the first nine months of FY2024/2025, up from just EGP 102.28 mn a year earlier.

Revenues rose to EGP 6.39 bn, up from EGP 4.61 bn.

Basic earnings per share rose sharply to EGP 0.4086, compared to EGP 0.0514 in the same period last year.

Driving the rise:

The company attributed the profit growth mainly to a EGP 1.77 bn increase in sales revenue, which outweighed a EGP 732 mn rise in cost of revenues.

It also credited a EGP 126 mn gain from revaluation of real estate investments, despite recording EGP 511 mn in foreign exchange losses during the period.

Remember:

The company approved its estimated budget for the upcoming fiscal year back in March, setting an ambitious target to rake in EGP 1.36 bn in profits for FY 2025-2026.

Egytrans more than triples its profits in 2024

Transport and logistics firm Egytrans reported a 230% surge in net profit for 2024, hitting EGP 204.56 mn, according to its latest earnings disclosure.

The company’s revenue also jumped to EGP 736 mn, up from EGP 414 mn the previous year.

Remember, the company is making moves:

Last month, the Egyptian Competition Authority received a notification from the firm expressing its desire to acquire a 99.9% stake in the trucking company National Transport and Overseas Services Company (NOSCO).

Also, the company’s Chairman announced earlier this week that Egytrans purchased land in Greater Cairo under plans to develop a river port as it looks to expand its operations. Licensing procedures will start soon, with the port and river barges expected to be operational within two years.

Domty’s profits fall 93% in Q1

Arab Food Industries “Domty” saw its net profits plummet 93% YoY in Q1 2025 to EGP 10.6 mn, down from EGP 153.3 mn in Q1 2024, its latest earnings release showed.

Sales slipped slightly to EGP 2.25 bn from EGP 2.28 bn in the same quarter last year.

Earnings per share climbed to EGP 0.03, down from EGP 0.44 in Q1 2024.

Q1’s disappointing results were expected as the company pushes forward with a major restructuring strategy, the company’s Vice Chairman and Managing Director Mohamed El Damaty said.

The transformation centers on three key shifts:

Separating its bakery operations from the dairy and juice divisions, which led to dropping shared distributors and a temporary dip in March sales.

Doubling marketing spend to defend market share and tweak the brand in celebration of its 35th anniversary.

Adopting a cash-only sales model for both retail and wholesale channels, with the impact expected to begin showing by the end of Q2.

Looking ahead:

Looking ahead, Domty — which said last year it would channel EGP 200 mn in investments to boost expansion in 2025 — is preparing to split into two publicly listed companies. Alongside that, it is working to shorten payment cycles in the wholesale segment to lower financing costs and improve margins, Damaty said.

While the early-year results reflect growing pains, the company expects a gradual rebound starting in Q2 and a return to a stronger, more focused position by the end of Q3—just in time for the official launch of its two-entity structure and new investment opportunities, he noted.

Orascom moves to acquire six companies on the rise

Orascom Investment Holding S.A.E. has approved proceeding with the EGP 502 mn acquisition of six companies in Egypt’s entertainment, food services, and tourism sectors.

The move comes after the company’s non-executive board members approved a fair value assessment prepared by an independent financial advisor.

The targeted companies for acquisition are:

Misr for Entertainment Investments S.A.E. (MEI)

The Egyptian Company for Food and Services (Abela Egypt) S.A.E.

Pier 88 Cairo for Touristic Restaurants S.A.E.

Misr for Touristic Establishments S.A.E.

Pier 88 Touristic Establishment LLC

Abela for Trains Services Egypt S.A.E.

According to the company, these businesses have delivered results approximately 52% above projections, underscoring their strong market position and the strategic value of the acquisition.

In light of their performance, Orascom Investment’s board has called for an Ordinary General Assembly meeting to be held on July 1 to move forward with its plan.

Egypt’s PMI rises to 49.5 in May, easing pace of contraction

Business conditions in Egypt’s non-oil private sector continued to decline in May, but at the slowest pace in three months. The S&P Global Purchasing Managers’ Index (PMI) rose from 48.5 in April to 49.5—still below the 50.0 threshold that separates growth from contraction.

The improvement reflected softer declines in output and new orders, though firms continued to cut staff and purchasing amid rising input costs and currency volatility.

Main drivers of the softer contraction:

New orders & output: Both declined for a third month, but at slower rates. Weak customer demand persisted, though manufacturing showed some recovery.

Demand weakness: Fewer firms reported sharp sales drops, helping to ease the overall pace of contraction.

Employment & purchasing: Employment fell for the fourth month, mainly due to not replacing leavers. Purchasing activity dropped at the fastest pace since October as firms aimed to streamline inventories.

Cost pressures: Input cost inflation hit a 2025 high, led by rising prices for fuel, cement, and paper. A volatile exchange rate, especially against the US dollar, added to cost burdens. Wages rose only slightly.

Selling prices & inflation: Firms raised output prices for the first time in seven months, passing on some of the cost burden after holding prices steady in April.

Supply chains: Inventories rose slightly; no major issues were reported with supplier delivery times.

Future outlook:

Businesses showed a slight improvement in sentiment for the 12-month outlook compared to April, though optimism remained historically weak. Persisting cost pressures and weak demand continued to dampen confidence.

David Owen, Senior Economist at S&P Global Market Intelligence, noted that despite the ongoing downturn, the slower pace of decline and manufacturing growth were positive signs. However, concerns over exchange rates and global trade uncertainty—such as US tariffs—continued to weigh on expectations.