The Clap
MOPCO’s net profits surged by 55.8% YoY in 2023 and exceeded its revenues as per the company’s statement.
Net profits > Revenues..?
Although MOPCO’s revenues declined by 14.8% YoY to EGP 5.96 billion and its gross profits stumbled by 24% YoY to EGP 3.22 billion, their net profits grew by a whopping 55.8% YoY to EGP 5.97 billion.
The major positive difference in last year’s statement is foreign currency translation gain balances, which increased by 8,508% YoY to EGP 2.12 billion.
Claps Class – FX Translation Gains:
In this context, translation gains from foreign currency balances happen when the foreign currency appreciates and/or the local currency depreciates.
Other Key Metrics
- Gross Profit Margin, which represents the percentage of revenue that remains after subtracting the costs of goods sold — decreased by 6.6% YoY to 54.1%
- Operating Profits, which is an indicator of the company’s profitability from its core business operations — decreased by 25% YoY to EGP 2.96 billion
Some Context
The company’s stock price jumped 2.06% yesterday after the earnings announcement, and by 18.97% year-to-date.
