Qalaa Holdings’ consolidated revenue grew a remarkable 86% y-o-y to EGP 23.7bln in 3Q22

Top-line growth reflects Qalaa’s robust operational and growth strategies driving strong performances across all subsidiaries as well as improved refined product prices and refining margins at ERC; excluding ERC the Group delivered a strong 25% y-o-y growth in consolidated revenue to EGP 5.9 billion and a 103% y-o-y increase in recurring EBITDA to EGP 1.1 billion in 3Q22.

Key Operational Highlights

• ERC was the primary driver behind consolidated revenue growth, contributing c.75% to Qalaa’s total revenue in 3Q22;


• TAQA Arabia’s solid top line results reflect strong performance at TAQA Petroleum and were further supported by higher power generation and distribution volumes at TAQA Power and CNG volume growth at TAQA Gas;


• ASEC Holdings delivers stable year-on-year revenue despite Al-Takamol Cement performance being impacted by political turmoil in Sudan and a difficult rainy season, which affected sales volume;


• National Printing saw improved volumes and benefitted from higher prices at all its companies. El Baddar continued capitalizing on its new cutting-edge facility, while growth in domestic sales outweighed a decline in export sales at Shorouk for Modern Printing and Packaging and Uniboard;


• ASCOM’s topline growth was driven by improved performance at ACCM and volume expansion at GlassRock;


• Dina Farms Holding’s revenue grew year-on-year as ongoing facility enhancement projects enhance operations at Dina Farms and ICDP benefits from its direct distribution strategy as well as improved pricing;


• The Group’s export proceeds recorded c. USD 27.1 million in 3Q22, while local foreign currency revenue recorded c. USD 987.2 million. Moving forward, the Group will continue focusing on exports and leverage the cost advantage available to local manufacturers;


• ERC’s receivables from EGPC continue to accumulate and have reached EGP 10.2 billion as of 30 September 2022;


• Finalizing debt restructuring at Qalaa Holdings remains a priority, yet the process is slowed by the ongoing FX turbulence;


• Qalaa ideally positioned to benefit from macroeconomic dynamics and management is confident that the strategy of incremental investments and gradual deleveraging will continue to pay dividends in the future;


• Qalaa’s bottom-line profitability will be affected in the coming period owing to the depreciation of the Egyptian pound, with an anticipated FX based loss in the fourth quarter.