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We have a meaty read for you this morning with news of a mega residential project jointly carried out by Madinet Masr and Heliopolis Housing, news of IPO updates from ACUD and Act Financial, and more.
The Clap:
The Central Bank of Egypt (CBE) maintained key interests at its Monetary Policy Committee (MPC) meeting on Thursday.
The details:
The bank left overnight lending rates unchanged at 28.25%, held overnight deposit rates steady at 27.25%, and main operation and disc rate were maintained at 27.75%.
The rationale:
The CBE notes that while economic growth slowed to 2.5% in the first half of the fiscal year from 4.2% in the same period last year, rising non-food inflation had mitigated a steady decline in food inflation.
Remember:
Annual headline and core inflation fell to 32.5% and 31.8% respectively last month, falling from annual headline and core inflation peaks of 38% and 41% in September and June 2023, respectively.
What to expect going forward:
The CBE’s average inflation target is 7% (±2%) by 4Q 2024 and 5% (±2%) in 4Q 2026. The MPC forecasts “a significant decline in inflation” in 1H 2025 due to the combined impact of recent monetary policy tightening, unification of the foreign exchange market, and favorable base effects.
The Clap:
Egyptian Gulf Bank (EG Bank) has reported EGP 537.49 million in net income for the three months ending in March. EFG Holding also more than doubled its profit for the first quarter.
First up EG Bank,
net interest income (NII):
The bank reported EGP 1.18 billion in NII for 1Q, rising 28.7% YoY.
Net fees and commissions
income rose to EGP 336 million, up 217.6% YoY.
Net profit:
The bank raked in EGP 537.49 million in net income for the period, a 69.9% YoY leap in its bottom line.
Secondly, EFG Holding
saw its revenues surge 92% YoY to EGP 8.6 billion on the back of strong fx-gains, unrealized gains on investments/seed capital; together with stronger revenues across all platforms.
Net operating profit
rose 142.1% YoY to EGP 3.6 billion.
Net Interest Income:
NII rose to EGP 890 million for 1Q 2024, a 66.6% YoY jump.
Net profit:
The firm’s net income rose 110% YoY to EGP 1.8 billion during the quarter.
The Clap:
The country’s largest mobile network operator by active subscribers Vodafone Egypt has reported a 37.2% YoY leap in revenues for the year ending in March 2024, the company noted in a promotional video on Linkedin.
The details:
The company raked in EGP 55.4 billion in revenues for the year.
Growing its customer base:
The telecom firm saw its customer base expand at a 6.2% clip YoY, and new services 48.3 million users across the Egyptian market.
So what:
Telecom Egypt (ETEL) owns almost a 45% stake in Vodafone Egypt. Vodafone Egypt holds approximately 45% of the national market share, and heavily affects ETEL’s bottom line. Earlier this month, ETEL dispelled rumors it was looking to sell its shares in Vodafone Egypt.
The Clap:
Egyptian dairy player Obour Land for Food Industries (OLFI) added EGP 157 million in net income for the three months ending in March.
Revenues:
The company saw its revenues rise 18.36% YoY to EGP 1.74 billion in 1Q 2024.
Net profit
jumped 36.34% YoY to EGP 157.02 million.
In other dairy news:
Arabian Food Industries “DOMTY” reported a 1.28% rise in net profits to EGP 153.3 million in 1Q 2024. The company reported net sales of 2.28 billion for the period — a 34.3% YoY rise — while its gross profits saw a 21.6% YoY jump to EGP 494.16 million.
What else is clapping?
A delegation from the International Monetary Fund is currently conducting the third review of Egypt’s USD 8 billion loan program, Enterprise reports. The IMF is expected to wrap up their review — which is focused on the channeling of Ras Al Hekma proceeds and implementation of the state ownership program — on the 15th of June. The third tranche of the program would unlock another USD 820 million.
EGX-listed sanitary ware producer Lecico Egypt reported a 437% YoY rise in net profits in 1Q 2024 to EGP 486.3 million. Its revenues are up 14% YoY to EGP 1.38 billion.
Egypt Aluminum Company (Egyptalum) recorded a 33.4% YoY increase in net income in the first quarter of the year to EGP 5.2 billion. Its revenues have jumped 52.2% to EGP 22.4 billion in the same period.
Misr Fertilizers Production Company (Mopco) saw its bottomline grow 94.7% YoY to EGP 7.64 billion. Its revenues are up 219.7% YoY to EGP 4.79 billion, while it also raked in 7.85 billion in foreign currency gains, up
275.9%.
Misr Chemical Industries Co saw its net profits rise 17.33% YoY during the first ten months of the fiscal year, reporting EGP 550.19 million in net income from the beginning of July 2023 till the end of April 2024.
Phillip Morris — which last week acquired a 14.7% indirect share in local government owned counterpart Eastern Company — has inked a non-exclusive MoU with the Egyptian firm for long-term cooperation in manufacturing and product development, including heated tobacco offerings.
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