EFG Holding reports strong growth in 1Q 2023: EFG Holding reported a net income after tax and minority interest of EGP 885 mn in 1Q 2023, up 157% y-o-y, according to its earnings release (pdf). Revenues were up 129% y-o-y to EGP 4.5 bn, underpinned by growth in treasury operations as well as a strong performance generated by its investment bank and commercial lender aiBank.

The breakdown: Revenues at EFG’s investment bank more than tripled to EGP 3.0 bn in 1Q 2023, driven by a 238% y-o-y surge in investment banking revenue to EGP 216 mn and a 44% y-o-y increase in brokerage revenues to EGP 621 mn. The NBFI platform delivered EGP 689 mn in revenue in 1Q 2023, up 15% from the year before — largely thanks to a 78% rise in revenues to EGP 254 mn at valU, the company’s BNPL arm. Meanwhile, aiBank’s revenues rose 65% y-o-y to EGP 727 mn on the back of higher net interest income. EFG acquired51% of the bank in November 2021.

What they said: “Our core operational platforms supported our performance for the period, especially on the sell-side of the house,” Group CEO Karim Awad said in a statement (pdf). “Our investment banking division executed a strong pipeline of [transactions], concluding two equity and seven debt transactions worth an aggregate of USD 2.9 bn. These included the landmark IPOs of Abraj Energy Services on the Muscat Stock Exchange and Adnoc Gas on the Abu Dhabi Securities Exchange — the largest listings on their respective stock exchange.”

EFG Holding?The company’s shareholders yesterday voted to change the company’s name from EFG Hermes Holding to EFG Holding, according to a press release(pdf). Shareholders approved a proposal to raise its issued and paid-in capital by 25% to EGP 7.3 bn and to increase its authorized capital from EGP 6 bn to EGP 30 bn.

IBNSINA EARNINGS RISE-

Ibnsina Pharma’s net income after minority interest rose 22% y-o-y to EGP 72.6 mn in 1Q 2023, according to the company’s earningsrelease (pdf). Ibnsina booked revenues of EGP 6.8 bn, up 28% y-o-y. Revenue growth was driven by the company’s wholesale segment, while efficiency savings protected its bottom line from the impact of inflation and the EGP devaluation.

Ibnsina’s “conservative” strategy reaped rewards: Ibnsina grew revenues in its wholesale business by 63% to hit EGP 2.4 bn, and in its hospital and tenders segment by 30% to reach EGP 1.3 bn. The company pursued a “conservative sales policy” in its core retail business, reducing its credit lines with some pharmacies to mitigate risk amid economic headwinds. That led to more modest growth in the retail segment, which increased 11% to EGP 3.3 bn — meaning its core business accounted for 47% of overall revenues, down from 54% the previous year.

And limited cost inflation: Ibnsina also implemented “conservative” policies to limit growth in operational expenditure to 7% even as input costs increased at a much higher rate, making efficiency savings on salaries, electricity, packaging, and printing, among other areas.

Ibnsina says it’s now the country’s top pharma distributor, citing an IQVIA report that put its market share at 24% in 1Q 2023. “We take great pride in being recognized as the top pharma distributor in Egypt, and we are committed to maintain this position by continuing to innovate, invest, and provide exceptional services,” CEO Omar Abdel Gawad said. “We target in FY23 to restore our revenue growth to reach high teens levels with a significant EBITDA margin enhancement,” he added.

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