Corporate news

Oriental Weavers [ORWE] – FY 2025 Results

Sales Growth with Pressure on Net Profitability from Higher Indirect Costs and Credit Provisions

Oriental Weavers reported solid revenue growth in 2025; however, profitability declined due to rising indirect costs, higher credit provisions, and weaker financial and investment income.

* Net Sales Increased by 9.6% to reach EGP 26.623 billion.

• Gross Profit: Rose by 8% to EGP 3.350 billion, while the gross profit margin slightly declined from 12.8% in 2024 to 12.6% in 2025.

• Net Profit: Decreased by 11% to EGP 2.263 billion, with the net profit margin declining from 9.03% to 8.22%, impacted by higher operating expenses, increased credit and financing provisions, and weaker non-operating and investment income.

• Administrative & General Expenses: Increased by 19%.

• Distribution Expenses: Increased by 17%.

Provisions & Other Income

• Provisions: increased by 941% to EGP 253 million.

• Finance Expenses: Declined by 3%.

• Currency valuation differences decreased significantly by 85% as a result of improved foreign currency flows, especially dollar flows, and a decrease in the value of dollar liabilities relative to dollar assets.

• Investment Returns: Declined by 90% to EGP 18.5 million in 2025, compared to EGP 177 million in 2024.

• Treasury Bill Income: Decreased by 26%, recording EGP 454.2 million in 2025 compared to EGP 579.2 million in 2024.

Despite sales growth, increased administrative expenses and lower non-recurring revenue items, along with reduced financing and investment income, put pressure on the company’s profitability, resulting in a slight decrease in net profit and profit margin for 2025.

Mostafa Amin -Equity Analyst

MAmin@egy.Primegroup.org