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Elsewedy’s profits surge almost 73% in 2024
Elsewedy Electric reported strong bottom-line growth for FY 2024, with net profit after minority interest reaching EGP 17.5 billion, a significant 72.6% YoY increase, its latest earnings release showed.
The company’s net profit margin expanded to 7.5%, up from 6.6% in FY 2023, underlining its strong operational efficiency.
The income surge was driven by strong results across key business segments. The company’s Wires & Cables and Turnkey Projects divisions posted strong performances, fueled by a combination of strategic pricing and continued market expansion.
Revenues
Elsewedy Electric reported almost EGP 232 billion in total revenues for FY 2024, representing a 52.4% increase compared to the prior year.
Q4 2024 results also saw strong growth, with revenues reaching EGP 67.2 billion, up 54.8% YoY.
Segments
Wires & Cables: The largest contributor to total revenues, the segment saw a 66.4%% YoY growth in FY 2024, reaching EGP 137.1billion. Higher prices during Q4 and a modest 3.5% YoY volume increase in key markets like Egypt and Saudi Arabia were key growth drivers.
Turnkey Projects: The segment saw 32.4% YoY growth, with 2024’s revenues reaching a little over EGP 70 billion, supported by favorable foreign currency translation effects and increased project execution outside Egypt.
What they said
“As we conclude FY 2024, I am proud to reflect on Elsewedy Electric’s remarkable achievements, marking a year of resilience and growth. Building on this momentum, our three-year plan aims to double exports and further diversify our portfolio, solidifying our position as a global leader. We are focused on forging strategic partnerships and integrating cutting-edge AI-driven solutions to enhance operational efficiency and drive long-term growth,” the company’s CEO Ahmed Elsewedy said.
It is worth noting that the company’s backlog stood at EGP 196 billion as of December 31, 2024, with 42% of projects located in Egypt, indicating a solid pipeline for future growth
Dividends
Based on 2024’s performance, Elsewedy’s Board of Directors has proposed a dividend distribution of EGP 1 per share, reinforcing Elsewedy Electric’s commitment “to delivering consistent returns to its shareholders,” management said.
All aboard the IPO train
The Egyptian government has appointed investment bank CI Capital to manage the IPO of Chill Out, a subsidiary of the National Service Projects Organization on the Egyptian Stock Exchange, Al-Borsa quotes sources familiar with the matter as saying
Details
Cabinet is reportedly working on transferring Chill Out to The Sovereign Fund of Egypt (TSFE) with law firm ADSERO-Ragy Soliman & Partners set to serve as the offerings legal advisor.
Refresher
In addition to its 85 fuel stations, Chill Out is a player in the real estate sector, with operations across domestic restaurants and retail chains.
What’s next
Once the transfer to TSFE is completed, the company will make its debut on the EGX before 2025’s end, the news outlet notes.
The percentage of shares planned to be offered will be determined after completion of an ongoing company expansion.
In line with state targets
In January, EGX Chairman Ahmed El-Sheikh said he expects more than 11 companies to make their public debut on the EGX this year.
His statement came a month after Prime Minister Mostafa Madbouly noted that his government plans to list at least 10 companies in 2025.
Middle East Oil Refining Company, Wataneya, Safi, and Silo Foods are among these government-owned firms.
Another player is also eying a listing
Qalaa Holding’s subsidiary National Printing Company (NAPR) is also set to list its shares on the EGX by June, Qalaa’s co-founder Hisham-El Khazindar told the news outlet. The firm had originally intended to IPO in the fourth quarter of 2024 but opted to postpone it to see if market conditions would improve.
EFG Hermes will act as the lead manager for the IPO, while Zulficar & Partners Law Firm will provide legal advisory services.
ElKhazindar added that Qalaa plans to undertake a financial restructuring of NAPR, which will include converting part of its debt into equity shares, as well as transferring some indirect ownership stakes into direct holdings within the ownership structure.
In February, the Egyptian Stock Exchange approved the provisional listing of National Printing’s shares, with a paid-up capital of EGP 211.7 million, distributed over 21.171 million shares with a nominal value of EGP 10 each. The shares were then split into EGP 1 each in August, Al Borsa notes.
In more IPO news, Bonyan is pushing forward with another regional roadshow ahead of its debut
Real estate investment firm Bonyan, a subsidiary of Compass Capital, plans to begin marketing its upcoming IPO to local institutional investors after Eid, with further expansion to Gulf investors in Saudi Arabia, the UAE, and Oman, Chairman Shamel Aboul Fadl told Al Mal.
This comes after the company’s IPO managers, CI Capital and Arqaam Capital, launched a previous promotional tour in the UAE and Saudi Arabia back in September to generate investor appetite ahead of the company’s public debut.
The company has already filed a request with the bourse to temporarily list its shares on the EGX.
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