Today’s Top News & Analysis
NFAs weaken in January 2024
Net Foreign reserve hits USD35.31bn in February 2024
OLFI 2023: Extraordinary performance muted by FX losses and finance expenses
MACRO
NFAs weaken in January 2024
The Egyptian banking system's Net Foreign Assets (NFAs) weakened in January 2024 to negative USD29bn vs. USD27.2bn a month earlier. (Enterprise)
Net Foreign reserve hits USD35.31bn in February 2024
Net Foreign reserves in the Central Bank of Egypt recorded USD35.31bn in February 2024 vs. USD35.25bn in January. (Al-Borsa)
CORPORATE
OLFI 2023: Extraordinary performance muted by FX losses and finance expenses
Obour Land for Food Industries [OLFI] posted its 2023 consolidated results with only a 2% y/y growth in net profits to EGP471mn despite:
· Stronger revenues of EGP7.2bn (+58% y/y), driven by a 60% y/y increase in the average selling price of white cheese to EGP55.6/kg.
· Stronger gross profit margin of 28.4% (+6.9pp y/y).
· Better SG&A-to-revenues ratio of 4.1% (+1.5pp y/y).
The muted net profit growth is attributable to the following:
· Booking FX losses of EGP792mn.
· Posting losses from revaluation of FX at EGP100mn vs. EGP8.5mn a year earlier.
· Higher finance expenses of EGP149mn vs. only EGP34mn last year.
However, OLFI reported a remarkable performance in Q4 2023 with net profits of EGP163mn (+20% y/y, +71% q/q) on:
· Stronger revenues of EGP2.2bn (+55% y/y, +7% q/q), driven by both better prices and volumes of white cheese. The average prices came in higher by 44% y/y to EGP60.4/kg, while volumes increased by 7% y/y to 33,700 tons.
· Extraordinary gross profit margin of 47% (+26pp y/y, +29pp q/q).
On a separate note, OLFI's BoD proposed distributing cash dividends of EGP0.95/share, implying a 6.8% dividend yield.
We note that based on yesterday's closing price OLFI's P/E is 11.9x and EV/EBITDA is 3.3x. (Company disclosure: 1, 2, 3)
Markets Performance
Key Dates
7-Mar-24
ALCN: Cash dividend / Payment date for a dividend of EGP1.936/share.
AMOC: Cash dividend / Payment date for a dividend of EGP0.20/share (2nd installment).
FAIT: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
OCDI: OGM / Approving financial statements ending 31 Dec. 2023.
9-Mar-24
MICH: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
MFPC: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
10-Mar-24
SKPC: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
11-Mar-24
QNBA: Cash dividend / Deadline for eligibility for a dividend of EGP1.00/Share.
14-Mar-24
QNBA: Cash dividend / Payment date for a dividend of EGP1.00/share.
PORT: OGM / Discussing netting contracts.
18-Mar-24
EGBE: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
EGBE: EGM / Amending Articles No. 6, 7 & 24 of the bank's bylaws.
20-Mar-24
EGCH: OGM / Approving the estimated budget of FY 2024/2025.
EGCH: EGM / Approving increasing the issued capital & amending Articles No. 6 & 4 of the company's bylaws.
21-Mar-24
ADIB: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
ADIB: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the bank's bylaws.
23-Mar-24
TMGH: OGM / Approving financial statements ending 31 Dec. 2023.
25-Mar-24
SAUD: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
CERA: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
PHDC: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
27-Mar-24
EXPA: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
GBCO: EGM / Amending Articles No. 5 of the company's bylaws.
28-Mar-24
CIEB: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
MCQE: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
HDBK: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
EMFD: OGM / Approving financial statements ending 31 Dec. 2023.