EFG Holding income, revenues up on investment, commercial bank growth:EFG Holding’s net income after tax and minority interest rose 24% y-o-y to EGP 395 mn in 3Q 2023 on the back of strong growth at its investment bank and aiBank, according to its earnings release(pdf). Revenues during the quarter climbed 27% y-o-y to EGP 3 bn. Net income and revenues are each up by more than two-thirds on a year-to-date basis.

The breakdown:

  • Investment bank revenues rose 30% y-o-y to EGP 1.4 bn during the July-September quarter backed by the increase in brokerage revenues in Egypt and the UAE, asset management incentive fees in Egypt, and private equity management fees.
  • aiBank’s revenues climbed 53% y-o-y to EGP 890 mn, while its bottom line more than tripled y-o-y to EGP 345 mn. The growth was driven by higher interest income and higher fees and commissions on trade finance.
  • Consumer finance platform valU’s top line more than doubled to reach EGP 314 mn. Revenues across the group’s NBFI division were flat due to a pull-back in revenues at its leasing operations and Tanmeyah.

Some love for Valu: “While we saw broad-based strength across our multiple verticals this quarter, the outstanding contributions from our innovative fintech company Valu were a strategically important part of the EFG Finance story,” said (pdf) EFG Holding Group CEO Karim Awad.

RECORD SALES AT PALM HILLS-

Real estate developer Palm Hills Developments reported both strong revenue and sales growth in 9M 2023 on the back of strong demand and higher prices, according to its latest earnings release (pdf). The company’s top line climbed 18% y-o-y to EGP 11.3 bn during the January-September period, resulting in a 15% increase in net income to EGP 1 bn.

New sales doubled y-o-y to EGP 35 bn over the nine-month period on the back of rising prices and higher sales volumes, PHD said. Sales in West Cairo surged more than 140% to EGP 19 bn, largely thanks to its Badya project, where sales more than tripled following a 65% increase in sales and higher prices. Strong performance at its Hacienda Bay project helped North Coast sales to more than double to EGP 9.8 bn, while East Cairo sales rose 44% to EGP 6 bn.

The need for speed: “We are still pursuing the strategy of spending more on construction and accelerating the execution pace in the key projects, to hedge from cost inflation,” said CEO Yasseen Mansour. “Therefore, we spent more than EGP 5 bn in 9M2023 both on commercial and residential projects.”

A STRONG QUARTER FOR E-FINANCE-

E-Finance earnings cross EGP 1 bn mark for the first time: E-Finance’s net income afterminority interest jumped 68% y-o-y in 9M 2023 to EGP 1.1 bn, topping the nine-figure mark for the first time, the fintech player said in its earnings release (pdf). The company generated EGP 2.8 bn during the nine-month period, up 43% y-o-y, driven by strong growth at its digital operations business. The company’s quarterly revenues also crossed the EGP 1 bn threshold for the first time, rising 52% y-o-y to more than EGP 1 bn. Net income more than doubled to EGP 429.0 mn in the July-September period.

The breakdown:

  • Revenues at its flagship digital operations business grew 45% y-o-y to EGP 2.5 bnduring 9M 2023, contributing 90% of the group’s total revenues. The business’s growth was driven by solid results in its transaction revenue, cloud hosting services, and its build and operate services.
  • eCards revenues slipped 1% to EGP 213.7 mn. After inter-company eliminations, revenues were 39% higher at EGP 162.6 mn thanks to a doubling of card management revenues.
  • The top line of the company’s e-ticketing arm E-Aswaaq climbed 71% to EGP 161.0 mn on the back of solid growth in the subsidiary’s digital platforms and applications across tourism and e-commerce, as well as its digital Agri-lending platform.

What they said: “The group has kicked off the second half of the year on an impressive note and has booked record results across the board,” Chairman Ibrahim Sarhan said. “Net income surpassing the EGP 1 bn mark for the first time … reflects our ability to generate strong returns from our higher margin revenue streams.”

MACRO GROUP SEES INCOME DIP, REVENUES RISE

A jump in costs weighs on Macro Group’s bottom line: Pharma and cosmeceuticals firm Macro Group saw its net income slip 24% y-o-y in 9M 2023 to EGP 98 mn, according to its earnings release (pdf). The company attributed the dip in income to a 540% y-o-y jump in net finance costs and a drop in net operating income.

Revenues were up: Revenues increased 13% y-o-y during the first nine months of the year to EGP 590 mn, driven by an increase in pricing, which helped offset a 19% y-o-y dip in volumes sold. The revenues were driven by skincare sales, which made up 40% of the company’s revenues for the period, followed by haircare (18%) and female care (13%). The company also recorded a 33% y-o-y increase in export revenues and a 9% y-o-y jump in e-commerce revenues.

Looking ahead: “Moving ahead, our foremost priority is to enhance product volumes, revenue, and profitability, even in the face of the persistent economic challenges,” company chairman Ahmed Elnayeb said in the release.

ALSO REPORTING- Ibnsina Pharma reported 3Q 2023 net income of EGP 42.0 mn (+35% over the same period last year) on net revenues of EGP 9.1 bn. The distributor claimed a market share of 24% in the quarter and said (pdf) it expects to “retrieve … previous profitability levels once interest rates start to decline.”

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