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Oriental Weavers’ net profits surge 100.4% YoY

Devaluation and higher prices are the main drivers.

Oriental Weavers announced their consolidated earnings for 2023.

The Breakdown:

Revenues: EGP 17.66 billion, a 33.2% YoY hike.

Gross Profit: EGP 2.55 billion, a 103% YoY surge.

Gross Profit Margin: Increased to 14.4% in 2023, from 9.5% in 2022. Usually, it’s an indicator of the company’s efficiency in managing costs and generating profits.

Net Profit: EGP 1.74 billion, a substantial 106% YoY increase.

Net Profit Margin: Rose to 9.85% in 2023 from 7.1% in 2022. This helps investors assess if a company’s management is generating enough profit from its sales and whether operating and overhead costs are under control.

Core Operations

Net operating income activities witnessed the highest improvement with EGP 1.83 billion in 2023, a 182% YoY spike

In Q4-23 alone, it achieved an outstanding 433% increase YoY to EGP 538 million

The Main Drivers

The company attributed the improved financial results to the following:

The average selling price increased by 11% in the international markets, due to currency devaluation
The average selling price increased by 29% in the domestic market as a result of implemented price increases
The expansion of the company’s showrooms