New exchange rates drive up Egypt Duty Free revenues by 13.7%

Egypt Duty Free profits rose by 13.7% this fiscal year owing to differences in currency exchange rates following the devaluation of the Egyptian pound by 112 piastres against the US dollar in March.

These currency differences provided the company EGP 11.73m in profits this fiscal year, thus sheltering them from the negative repercussions of the decline in tourism activity and fewer arrivals from abroad, according to an official source at the company who requested anonymity.

Egypt Duty Free’s activity is influenced greatly by the movement of foreign currencies against the Egyptian pound, especially the US dollar and the euro as importing goods—such as electrical appliances, alcoholic beverages, and perfumes—is done in these currencies.

The company resells these goods in foreign currencies through its outlets across airports, seaports, and land ports. The company also sells goods inside Egypt in local currency, which is adversely affected by any decline in the pound’s value, as it reflects in the company’s profit margins.