Corporate news

Obour Land [OLFI] – Commentary on 2025 Financial Results

Obour Land reported a decline in net profit of EGP 145.9 M, reaching EGP 854 M in 2025, representing a 14.59% Y-o-Y decrease, despite revenue growth of approximately EGP 1.6 bn to reach EGP 11.1 bn , a 17.53% increase.

This divergence between revenue growth and profit decline reflects clear pressures on the cost structure, as production costs rose by 24.14%, while administrative expenses increased by 9.98% and marketing expenses surged significantly by 85.10%. This sharp rise in costs eroded profitability margins despite higher sales.

Gross profit margin declined to 19.4% in 2025 compared to 23.7% in 2024.

EBITDA margin decreased to 12.9% versus 19% in the previous year.

Net profit margin stood at 7.7% compared to 10.6% in 2024.

Sales Structure Analysis

Obour Land relies primarily on the cheese segment, which forms the backbone of the company’s revenues

White cheese: 87% of total sales

Processed cheese: 6.42%

Dairy products: 5.8%

Juices: 0.5%

Operational Performance by Segment in 2025

Juice sales declined by 7.3%

Dairy product sales decreased by 9.5%

Strong growth in processed cheese sales by 69.5%

White cheese sales increased by 18.17%

Despite strong revenue growth, the sharp increase in production and operating expenses directly pressured the company’s profitability and margins. The cheese segment remains the main growth driver, while the company needs to manage its cost structure and improve operational efficiency to maintain profitability in the coming periods.

“There is a proposal to distribute 82% of the 2025 earnings per share, reflecting the presence of stable operating cash flows and consistent future profitability.

Mostafa Amin – Equity Analyst

MAmin@egy.Primegroup.org