FAWRY REPORTS RECORD REVENUES-

Another strong quarter for Fawry:EGX-listed e-payments giant Fawry more than doubled its adjusted net income to EGP 222.1 mn in 3Q 2023 as the company enjoyed strong growth across all of its segments, according to the company’s earnings release (pdf). Revenues rose 42% y-o-y to a record EGP 873.2 mn, driven primarily by the company’s banking segment, which saw revenues rise more than two-thirds to EGP 329.3 mn.

Growth in payments, microlending + supply chain solutions: Its payments segment generated EGP 349.4 mn in revenues, up 19% y-o-y. Revenues from its supply chain business surged more than 90% to EGP 65.4 mn while microlending brought in EGP 92.7 mn, up 39% y-o-y.

More transactions, more value: Fawry’s transaction throughput surged 70% to EGP 243.1 bn during the first nine months of the year. Transaction volumes climbed to almost 1.2 bn, up more than 20% from 9M 2022.

Another record year? “I am confident that we will close a record-breaking year in terms of top-line performance and profitability margins,” said CEO Ashraf Sabry.

CONTACT FINANCIAL INCOME UP-

Contact Financial has had a strong 2023 so far: Non-banking financial services (NBFS) pioneer Contact Financial saw its normalized net income rise 34% y-o-y to EGP 542 mn in the first nine months of 2023 on the back of growth in its financing and ins. divisions, the company said in its earnings release (pdf) yesterday. Income was up 58% to EGP 158 mn in 3Q 2023.

Auto loans, consumer finance drive lending growth: Net income in Contact’s financing division climbed 33% y-o-y in 9M 2023, fuelled by strong growth in the company’s lending portfolio. New financing rose 45% to EGP 12.1 bn during the period, led by auto loans and consumer financing. New financing in auto loans almost doubled in the year to date as supply of vehicles has improved somewhat and car prices rose. New financing in the company’s consumer finance segment rose 59% y-o-y backed by Contact’s expanding merchant network, product diversification, and market reach.

Ins. segments continued to expand: Contact reported a 27% y-o-y increase in earnings from its ins. Division in the January-September period, driven by high demand for Sarwa Life’s medical ins. product and SME life and health ins. offerings.

A RECORD QUARTER FOR GB CORP-

GB Corp earnings hit all-time high: GB Corp’s net income rose 20% y-o-y to reach a record EGP 662.4 mn in 3Q 2023, driven by strong consumer demand after a prolonged period of supply shortages, according to its latest earnings release (pdf). The company’s top line climbed to almost EGP 8.8 bn during the three-month period, up 22% on the same period last year.

Market conditions well-handled: The company’s automotive assembly and distribution unitGB Auto, which contributed 85% of the company’s revenues, reported a 48% y-o-y in its top line despite thorny market conditions including import restrictions and limited FX availability. Revenues from passenger cars rose 66% y-o-y to EGP 3.5 bn as the group was able to price up, offsetting a 14% slump in sales volumes. Meanwhile, the group’s NBFS arm GB Capital reported 14% y-o-y growth in revenues to EGP 1.2 bn on the back of portfolio growth at its leasing and consumer finance and arms.

What they said: “Despite the headwinds in the automotive market, GB Auto was able to deliver positive results during the period on the back of enhanced performance across its lines of businesses,” CEO Nader Ghabbour said. “We were able to offset the slowdown in volumes [of the passenger car] with enhanced pricing and an improved product mix, leading to stronger margins and increased profitability.”

RAMEDA INCOME RISES IN 3Q-

Rameda earnings up on higher prices, export growth: Rameda Pharma’s net income climbed 8% y-o-y to EGP 78.0 mn in 3Q 2023 on the back of higher overseas demand and price hikes, according to the company’s earnings release (pdf). The pharma manufacturer reported 43% growth in revenues to EGP 545.7 mn for the three-month period, supported by a 17% increase in sales volumes. Net income dipped 1% to EGP 197.0 mn in the first nine months of the year.

Repricing offsets fall in local sales volumes: Revenue from local sales rose 29% to almost EGP 400 mn during 3Q after the company hiked prices by an average 32% y-o-y. Higher prices helped to offset a 5% decline in sales volumes. Local sales accounted for almost three-quarters of the company’s revenue.

Exports rise: Rameda’s export revenues tripled to EGP 61.1 mn during the quarter on the back of a strong rise in demand in its key export market, Iraq. Overseas sales volumes more than doubled to 2.3 mn. Iraq accounted for more than 90% of the company’s overseas sales.

Cautious optimism: “Despite the turbulent market conditions across Egypt’s landscape, I am left cautiously optimistic of the road ahead,” said CEO Amr Morsy. “Our results this past quarter have witnessed significant improvement, with the group delivering strong revenue growth as well as healthy margins, and stands testament to the strength of the groups operations across the pharma space.”

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