Today’s Top News & Analysis
Auto sales drop to its lowest since April 2023
ISPH 2023: Higher net finance expenses mute the net profits growth
POUL 2023: The strong operational performance save the day
EFID 2023: Strong revenues reflect in net profits
ETEL 2023: Revenue growth reflects in the net profits
MACRO
Auto sales drop to its lowest since April 2023
According to the Automotive Marketing Information Council (AMIC), Egypt’s Auto sales volumes decreased by 40% m/m to 6,300 vehicles in January 2024, as:
· Passenger car sales drove the decrease where it dropped by 45% m/m to 4,808 units.
· Truck sales dropped by 25% m/m to 943 units.
Bus sales decreased by 34% m/m to 522 units. (Enterprise)
CORPORATE
ISPH 2023: Higher net finance expenses mute the net profits growth
Ibnsina Pharma [ISPH] posted its 2023 consolidated results, posting a 24% y/y in net profits to EGP214mn on:
· Higher revenues of EGP34bn (+52% y/y).
· Slightly better gross profit margin of 7.4% (+0.1pp y/y).
· Better SG&A-to-revenues ratio of 3.8% (+1pp y/y).
However, the net profits growth was muted by the huge growth in the net finance expenses to EGP917mn (+167% y/y).
Regarding Q4 2023, ISPH posted a decline in net profits both y/y and q/q by 25% and 6%, respectively to EGP40mn. This came despite a 57% y/y growth in revenues to EGP10bn (+11% q/q). The decline in net profits is attributable to a 95% y/y increase in the net finance expenses to EGP250mn (-4% q/q).
On a separate note, ISPHs' BoD proposed distributing EGP0.10/share, implying a 2.7% dividend yield. (Company disclosure: 1, 2)
POUL 2023: The strong operational performance save the day
Cairo Poultry [POUL] posted its consolidated 2023 results, reporting an extraordinary growth in net profits to EGP1.2bn (+293% y/y) on the strong operational performance coming as follows:
· Stronger revenues of EGP12bn (+82% y/y) mainly driven by increasing the selling prices across all segments.
· A better gross profit margin of 29% (+8.9pp y/y).
· A better SG&A-to-revenues ratio of 4.9% (+1.3pp y/y).
· Stronger other income of EGP274mn (+77% y/y).
However, regarding Q4 2023, POUL posted a 58% y/y decline in net profits to EGP31mn despite:
· An 85% y/y growth in revenues to EGP3bn.
· A 4.4pp y/y increase in the gross profit margin to 25%.
· A slightly better SG&A-to-revenues ratio of 6.9% (+0.6pp y/y).
The decline in net profits came in due to the following:
· A huge increase in FX losses to EGP238mn vs. EGP48mn a year earlier.
· An increase in other expenses to EGP129mn vs. only EGP1.6mn last year.
On a separate note, POULs' BoD proposed retaining 2023's profits.(Company disclosure: 1, 2)
EFID 2023: Strong revenues reflect in net profits
Edita Food Industries [EFID] reported its consolidated 2023 results, reporting a 57% y/y growth in net profits to EGP1.5bn on the back of:
· Higher revenues of EGP12bn (+58% y/y), mainly driven by higher average prices of EGP3.04/pack (+40% y/y). Additionally, selling volumes have increased by 13% y/y to 3,993mn pack.
· A slightly better gross profit margin of 32.4% (+0.4pp y/y).
Regarding Q4 2023, EFID posted a 1.5% y/y decline in net profits to EGP324mn despite the better revenues of EGP3.4bn (+34% y/y), driven by higher average prices of EGP3.34/pack (+44% y/y).
The decline in net profits can be attributable to:
· A 0.9pp decrease in gross profit margin to 32.6%.
· Recording net finance expenses of EGP12mn vs. net finance income of EGP7mn last year. (Company disclosure: 1, 2)
ETEL 2023: Revenue growth reflects in the net profits
Telecom Egypt [ETEL] posted its 2023 results reporting a 25% y/y growth in net profits to EGP11bn on the higher revenues of EGP57bn (+28% y/y). The revenue growth was mostly driven by a 15% y/y growth in the Home & Consumer segment to EGP25bn, contributing 44% of the total revenues. (Company disclosure)
Key Dates
4-Mar-24
EAST: OGM / Discussing agenda items.
EAST: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
ALCN: Cash dividend / Deadline for eligibility for a dividend of EGP1.936/Share.
5-Mar-24
Egypt PMI / February 2023 reading.
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.
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.
27-Mar-24
EXPA: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
28-Mar-24
CIEB: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.