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Qalaa Holdings revenues grow by 40% y-o-y to EGP 3.3bn in Q3 2017/18 - Daily News Egypt

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Qalaa Holdings revenues grow by 40% y-o-y to EGP 3.3bn in Q3 2017/18

EBITDA logs 43% y-o-y increase to EGP 306m; profit EGP 160m in Q3; ERC 98.8% to hit production by 2019

Qalaa Holdings has achieved 40% year-over-year (y-o-y) revenue growth in the third quarter (Q3) of fiscal year (FY) 2017/18 to record EGP 3.278bn, on the back of strong results from its energy subsidiary, TAQA Arabia, and the consolidation of National Printing, the company announced on Saturday.

Moreover, Qalaa’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the same period also posted a 43% y-o-y increase to EGP 305.6m.

In terms of profits, the group achieved a net profit of EGP 126.4m in Q3 of 2017/18 up from a loss of EGP 311.8m in Q3 of 2016/17.

Furthermore, on a nine-month basis, Qalaa recorded a 46% y-o-y increase in revenues to EGP 9.396bn, while its EBITDA reported a 70% y-o-y increase to EGP 943.0m in the first nine months of 2018 (9M18). The group reported a net profit of EGP 426.6m in 9M18 compared to a net loss of EGP 3.470bn recorded in the same period of last year.

“The group’s top line and EBITDA witnessed 40% and 43% y-o-y growth, respectively, while the partial deconsolidation of Africa Railways debt and a provision reversal helped drive bottom-line profitability for the quarter, with Qalaa’s net profit recording EGP 126.4m in Q3 of 2017/18,” said Qalaa Holdings Chairperson and Founder, Ahmed Heikal.

During the Q3, following a further deconsolidation of Africa Railways’ operational liabilities in both Kenya and Uganda, Qalaa booked a gain on sale on investment of EGP 252.6m.  Additionally, Qalaa booked EGP 202.7m as a provision reversal in Q3 of 2017/18 related to one of its share swap deals, which entailed a payment linked to Qalaa’s share price.

“We are seeing increased contribution from our mining platform ASCOM and the recent consolidation of National Printing has added significant upside to both our top-line and EBITDA,” said Hisham El-Khazindar, Qalaa Holdings’ co-founder and managing director.

Moreover, according to the press statement, the group’s EBITDA growth for Q3 of 2017/18 was driven by strong performances across Qalaa’s portfolio, including TAQA Arabia, ASCOM, Dina Farms, Takamol, and ASEC Engineering.  Additionally, the consolidation of National Printing also helped drive consolidated EBITDA growth, contributing EGP 74.7m to Q3 of 2017/18 EBITDA.

“Our expansion drive is part of a growth strategy that will see us deploy over EGP 8bn in small incremental investments over the coming three years, including our ventures in solar energy and expansions across all current businesses. Meanwhile, our transformational Egyptian Refining Company (ERC) project is now 98.8% complete,” added Heikal.

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