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El Sewedy Electric reports EPG 8.1bn revenues in Q1 2020, 2.6% decrease in net profits - Daily News Egypt

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El Sewedy Electric reports EPG 8.1bn revenues in Q1 2020, 2.6% decrease in net profits

Company faced challenges that negatively affected performance due to coronavirus, says El Sewedy

El Sewedy Electric Company reported revenues of EGP 8.10bn in its consolidated financial results for the first quarter (Q1) for the period that ended on 31 March 2020.

The results showed an annual decrease of 0.4%. The net profit decreased after the deduction of minority rights at an annual rate of 2.58%, to reach EGP 1.400m.

Managing Director, Ahmed El Sewedy, said that his company had faced a series of challenges in the Egyptian market, as was the case in other countries, due to the ongoing negative global impacts of the coronavirus (COVID-19).

He pointed out that activities in wire and cabling, as well as construction, projects are closely related to the general performance of the national economy. The customer base in the two sectors varies between different companies operating across various major economic sectors, such as construction, real estate development and manufacturing.

El Sewedy added that the company has successfully reaped the fruits of its efforts in recent years, during which a huge amount of resources was invested in developing its business model. The returns of those efforts were reflected in the annual 2/54% revenues growth in the construction projects sector.

El Sewedy noted that the renewable energy sector saw a strong performance during Q1 of 2020, thanks to the Benban solar power plant and wind energy projects.

“The administration’s confidence in the promising growth opportunities presented by the performance of this sector is major,” El Sewedy said, adding, “It has a great impact on maximising the value of the company during the coming period in light of the global trend to increase dependence on renewable energy sources.”

He stressed that the company will continue to study and explore opportunities in the sector to develop business. This will happen by merging with or acquiring other companies, and improving competitiveness amid various unforeseen circumstances.

El Sewedy added that the administration is currently focusing on reducing operating and other general expenses.

It works to achieve its goals to modernise its various operating systems by adopting the latest digital technologies. So far, this has resulted in improving the company’s operational efficiency and enhanced its flexibility to overcome the difficult few next months, while the administration considers accelerating revenue recovery.

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