Today’s Top News & Analysis
Subsidized bread prices are up by 300%
ETEL Q1 2024: Earnings grew only by 2% y/y
POUL Q1 2024: Flat net profit despite the higher revenues
BINV Q1 2024: FX gains drive the net profits growth
ECAP Q1 2024: Earnings declined 76% y/y to EGP14mn
MTIE Q1 2024: Strong net profits on higher revenues and gross profit margin
MACRO
Subsidized bread prices are up by 300%
Yesterday, the MP announced in a statement that the government will raise the price of subsidized bread for the first time in 30 years, from EGP0.05/loaf to EGP0.20/loaf, to be applied starting June 2024. (Enterprise)
CORPORATE
ETEL Q1 2024: Earnings grew only by 2% y/y
Telecom Egypt [ETEL] reported a 25% y/y increase in revenues to EGP17.5bn in Q1 2024 on growth in data revenues (62% of total revenues). The customer base increased across the board with fixed voice and broadband up 9% y/y and 8% y/y, respectively, while mobile subscribers increased by 4% y/y to 13mn. EBITDA grew 19% y/y to EGP7.3bn (EBITDA margin of 42% vs. 44% in Q1 2023). However, higher interest expenses led to only a 2% y/y increase in earnings to EGP3.9bn.
Results imply a TTM P/E of 4.5x. (Company disclosure)
POUL Q1 2024: Flat net profit despite the higher revenues
Cairo Poultry [POUL] posted a flat net profit at EGP555mn in Q1 2024 despite a 23% y/y growth in revenues to EGP3.4bn. The flat net profit growth is mainly attributable to the higher other expenses at EGP45mn vs. only EGP452,000 last year. In addition, the gross profit margin came in lower at 28% (-5pp y/y), and the SG&A-to-revenues ratio slightly increased to 4.4% (-0.2pp y/y).
Results imply a TTM P/E of 3.0x. (Company disclosure)
BINV Q1 2024: FX gains drive the net profits growth
B Investments Holdings [BINV] posted a 171% y/y growth in net profits to EGP701mn in Q1 2024 despite an 84% y/y decline in revenues to EGP39mn. The growth in net profits was solely driven by the huge FX gains coming at EGP865mn vs. only EGP258mn last year.
Results imply a TTM P/E of 5.3x. (Company disclosure)
ECAP Q1 2024: Earnings declined 76% y/y to EGP14mn
Al Ezz Ceramics & Porcelain Company [ECAP] reported a 76% y/y decline in earnings in Q1 2024 to EGP13.8mn on higher production costs.
· Gross profits declined 23% y/y to EGP165mn (24% GPM vs. 35% in Q1 2023.
· Revenues increased 14% y/y to EGP694mn on enhanced product mix.
Results imply a TTM P/E of 6.5x. (Company disclosure)
MTIE Q1 2024: Strong net profits on higher revenues and gross profit margin
MM Group for Industry & International Trade [MTIE] posted a 62% y/y growth in net profits to EGP248mn on higher revenues of EGP2.8bn (+12% y/y). In addition, MTIE posted a better gross profit margin of 15% (+3pp y/y).
Results imply a TTM P/E of 11.2x. (Company disclosure)
MARKETS PERFORMANCE
Key Dates
30-May-24
MASR: Cash dividend / Payment date for a dividend of EGP0.10/Share (1st installment)
AMIA: Stock dividend / Date for distributing a 0.10 for-1 stock dividend.
CCAP: OGM / Discussing agenda items.
TMGH: Cash dividend / Payment date for a dividend of EGP0.11/Share (1st installment)
ZMID: Cash dividend / Payment date for a dividend of EGP0.05/Share (1st installment)
ETEL: Earnings Announcement / Announcing Q1 2024 financial results.
2-Jun-24
CSAG: OGM / Approving the estimated budget of FY 2024/2025.
DSCW: Cash dividend / Deadline for eligibility for a dividend of EGP0.167/Share.
3-Jun-24
MSCI / MSCI's May 2024 Semi-Annual Index Review Effective Date.
JUFO: Cash dividend / Payment date for a dividend of EGP0.20/Share.
4-Jun-24
Egypt PMI / May 2024 reading.
5-Jun-24
DSCW: Cash dividend / Payment date for a dividend of EGP0.167/Share.
6-Jun-24
ALCN: OGM / Approving the use of Corporate reserve shown in the audited financial statements.
ALCN: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
8-Jun-24
ESRS: OGM / Approving financial statements ending 31 Dec. 2023 and netting contracts.
ESRS: EGM / Discussing capital reduction.
9-Jun-24
BINV: OGM / Approving financial statements ending 31 Dec. 2023 and the proposed dividends.
BINV: EGM / Amending Article No. 19 of the company's bylaws.
CCAP: OGM / Approving financial statements ending 31 Dec. 2023.
10-Jun-24
HELI: Cash dividend / Deadline for eligibility for a dividend of EGP1.34/Share.
11-Jun-24
GBCO: Conference Call / Discussing Q1 2024 financial results.
12-Jun-24
EGCH: EGM / Amending Article No. 4 of the company's bylaws.
IDHC: EGM / Amending Article No. 3 of the company's bylaws.
13-Jun-24
HELI: Cash dividend / Payment date for a dividend of EGP1.34/Share.
23-Jun-24
EGTS: OGM / Approving financial statements ending 31 Dec. 2023.