Elsewedy Electric is actively exploring new growth avenues as the company targets increasing its revenues, its CEO Ahmed Elsewedy said in notes to investors obtained by Daily News Egypt.
“Over the past 18 months since the floatation of the Egyptian pound and the kick-off of the government’s economic reform programme, Elsewedy Electric has delivered exceptional top-line growth and above-average profitability thanks to its export competitiveness and Egyptian pound cost base,” he added.
The financial indicators of the company showed a 7% year-over-year decrease in its consolidated profits during the first quarter of 2018, recording a profit of EGP 1.4bn versus EGP 1.53bn during Q1 2017.
The Arab world’s largest listed cable company attributed the drop in profits to a growth in costs, according to a statement to the Egyptian Exchange (EGX).
Elsewedy Electric’s revenues increased to EGP 9.9bn from January to March 2018, compared to EGP 9.7bn in the year-prior period.
The Egyptian cable maker’s consolidated financial statements showed a profit of EGP 42.4m during Q1 2018, compared to EGP 115m in the corresponding period a year before.
“In the first quarter of 2018, we are seeing year-over-year growth and margins return to normalised rates as the favourable base effect that characterised 2017 is now behind us. Nevertheless, we continued to deliver double-digit growth in our primary segment, wires and cables, while our metres and transformers segments have both shown consistent exponential growth with their sales increasingly contributing to our consolidated top-line and profitability,” he explained.
“Overall, our profitability margins in the first quarter of the year recorded gains over our pre-devaluation 2016 levels,” Elsewedy said
He noted that the turnkey projects segment faced challenging market conditions that weighed down on the segment’s performance. However, the company is actively exploring new growth avenues with a particular focus on infrastructure.
“In parallel, we are also pushing ahead with our strategy of building recurring revenue streams in the power generation space through the ownership of facilities as an independent power producer (IPP), putting together an IPP team dedicated to screening and evaluating investment opportunities in this fast-growing market,” the company’s CEO added.
“We are uniquely positioned to leverage both our reputation as an EPC contractor of choice and our expertise as a fully integrated energy solutions provider to venture beyond project execution operations and into ownership and long-term value creation,” he concluded.
[[Caption:]] The company’s turnkey projects segment faced challenging market conditions