Ezz Steel, a Cairo-based steel firm founded by Egyptian billionaire Ahmed Ezz, announced a profit of $460.3 million at the conclusion of the first half of the fiscal year 2024. This is a significant comeback from the company’s loss during the same period in 2023.
The steel company reported a profit of EGP2.28 billion ($460.3 million) in the first half of 2024, a significant improvement from the previous year’s loss of EGP809.78 million ($16.68 million).
Ezz Steel’s recovery was fueled by a 61.7 percent increase in revenues, which rose from EGP62.26 billion ($1.28 billion) in H1 2023 to EGP100.68 billion ($2.07 billion) in H1 2024. Sales growth, combined with cost-cutting initiatives, helped offset last year’s losses.
Stronger output and higher demand increased the company’s market share. Ezz Steel also managed to optimize its operations, keeping expenses under control and adding to overall financial improvement.
Ezz Steel, the leading steel producer in the Middle East and North Africa, has annual production capacity of 7 million tons at its Egyptian operations. It produces more than 5 million metric tonnes per year, outperforming competitors such as Saudi Arabia’s Hadeed and Emirates Steel. Ahmed Ezz controls 66.45% of Ezz Steel, making him one of the wealthiest investors on the Egyptian Exchange.
Because of its profit position in the first half of 2024, Ezz Steel’s total assets increased by 6.03 percent, from EGP113.37 billion ($2.34 billion) in H1 2023 to EGP120.21 billion ($2.48 billion) in H1 2024. The rise in assets demonstrates the company’s stronger position in the steel industry, as well as its ability to harness its resources effectively.
The company’s equity increased by a whopping 173.91 percent, rising from EGP1.3 billion ($26.70 million) in H1 2023 to EGP3.55 billion ($73.15 million) in H1 2024. This rapid increase in equity reflects Ezz Steel’s improved financial stability, which is likely to boost its value on the Egyptian Exchange.