Abu Qir Fertilizers [ABUK]: A “One-of-a-Kind” Quarter
Overweight and 12M PT maintained
Abu Qir Fertilizers [ABUK]
Egypt / Materials / Q1 2021/22 Results
12M PT: EGP25.4 (+31%)
set on 31 Oct 2021
Investment Rating: Overweight | Risk Rating: Medium
Earnings coming broadly in line
Abu Qir Fertilizers’ [ABUK] Q1 2021/22 net earnings came in at EG1.29bn (+87% y/y, +20% q/q), in line with our estimates (-0.8% vs. PRe). Revenues for the quarter recorded EGP2.66bn (+52% y/y, +5% q/q). Despite revenues missing our estimates of EGP2.9bn, net profit came in line as GPM during the quarter came 3pp better than we expected, registering 58.4%. The strong y/y performance can be attributed to significantly better average selling prices, coupled with improved sales volumes (total sales volume rose 3% y/y during the quarter).
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Mohamed Saad
Senior Equity Analyst
T +202 3300 5719