Egypt’s El-Sewedy Family Nets $88.91Million in Q1 2024 Profit

El-Sewedy Electric, an Egypt-based multinational electrical company led by the Egyptian billionaire El-Sewedy family, reported a 33.33 percent year-on-year (YoY) increase in consolidated net profit to EGP 4.23 billion ($82.53 million) in the first quarter (Q1) of 2024 from EGP 3.17 billion ($65.76 million).

According to the intermediate financial figures, consolidated revenues increased by 35.70 percent year on year to EGP 45.24 billion ($950.94 million) in Q1 2024, up from EGP 33.33 billion ($689.86 million). This expansion was fueled by higher average selling prices, volume recovery, and the impact of the EGP devaluation. International sales accounted for 58% of overall revenues, an increase of 12% year on year.

El-Sewedy Electric’s gross profit grew 71 percent year on year, hitting EGP 961 million ($82.53 million), up from EGP 562 million ($40 million) the previous year. This resulted in a 19.1 percent gross profit margin, which may be attributed to operational efficiency, reengineering initiatives, and favorable pricing dynamics.

The basic and diluted earnings per share (EPS) increased to EGP 0.202 ($0.0042) in Q1 2024, up from EGP 0.054 ($0.0011) in Q1 2023.

Ahmed El Sewedy, CEO of El-Sewedy Electric, stated: “I am pleased to inform that the company has maintained its growth trajectory and is achieving major operational milestones as part of its goal. This quarter, we used our diversified offers and dynamic business model to increase revenues across all of our categories.”

“Going forward, our ability to continue delivering growth and value to shareholders is underlined by our commitment to sustainability and innovation, which ensures that we are not just keeping pace with industry advancements but are also at the forefront of shaping the future landscape of integrated, infrastructure solutions,” El Sewedy stated.

In May 2024, the Egyptian Exchange (EGX) stated that the UAE’s Electra Investment Holding has made an acquisition offer for between 15% and 24.50% of El-Sewedy Electric.

The EGX-listed company’s consolidated net profit increased 86.70 percent year on year to EGP 10.11 billion ($209.74 million) in 2023, up from EGP 5.41 billion ($111.89 million) the previous year.

El-Sewedy Electric, founded in 1938 by the El-Sewedy family, has been a key player in the electrical equipment manufacturing business, particularly in the Middle East and North Africa. Ahmed El-Sewedy and his siblings, Sadek and Mohammed, together own a dominant 68.1 percent ownership in El-Sewedy Electric, totaling 1,478,358,330 ordinary shares. The family’s aggregate investment in the company is worth more than $1.2 billion.

Since its inception, the company has expanded into a regional and international provider of energy, digital, and infrastructure solutions, with total assets of $3.6 billion (EGP 61.27 billion) spread over 15 countries under the direction of CEO Ahmed El-Sewedy.

Elsewedy Cables Qatar, a subsidiary of El-Sewedy Electric, has signed a large Engineering, Procurement, and Construction (EPC) contract with Technip Energies for a critical project related to Qatar’s North Field South (NFS) Onshore Project. The project entails establishing electricity supply to NFS project facilities, which includes designing, engineering, procuring, and installing two 400kV cables connecting the RLF-S substation to the new 220kV INTAKE SS-36500 substation.

Ahmed Fathy Elsewedy, managing director of Elsewedy Cables Qatar, expressed his pleasure at being chosen for such an important project. He underscored Elsewedy Cables Qatar’s commitment to Qatar’s infrastructure development, emphasizing the company’s history of providing high-quality goods and expertise.

Earlier this year, El-Sewedy Electric opened the Elsewedy Industrial City (EIC) in Tanzania’s Kibaha district. EIC, spanning 2.6 million square meters, is East Africa’s first fully integrated industrial hub, located just 15 kilometers from the Kwala Dry Port and connected by the Standard Gauge Railway (SGR).

The industrial city, which is expected to attract $400 million in investments, represents a diverse approach that includes vital sectors such as construction materials, engineering, food and drinks, and medicines. It represents Egypt and Tanzania’s dedication to mutual prosperity, as well as economic collaboration.

Meanwhile, Orascom Financial Holding (OFH), another company tied to Egypt’s Sawiris family, recorded a consolidated net loss of EGP 22.81 million in Q1 2024, compared to a net profit of EGP 19.81 million in the same quarter last year. Despite a large increase in revenues to EGP 2.25 million from EGP 917,000, the company’s financial performance was hampered by strategic changes, notably the sale of its interest in Beltone Financial Holding SAE in 2021.

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