Profits up, revenues down: Our friends at Egypt Kuwait Holding (EKH) saw its attributable net income (ANI) rise over 25% y-o-y to USD 43 mn in 4Q 2023, while revenues dropped nearly dropped nearly 17% during the same period,according to the company’s latest earnings release (pdf). For the whole year,EKH’s attributable net income dropped nearly 26% y-o-y in 2023 to USD 179 mn, while revenues fell 27% to USD 801 mn throughout the year.

The why: A rise in urea prices — a key factor in EKH’s fertilizer and petrochemical operations — shortly following Russia’s invasion of Ukraine and subsequent decline in prices, in addition to the devaluation of the EGP being reflected in the companies financials calculated in USD, impacted the company’s y-o-y comparisons. Despite a decline in revenues and bottom line throughout the year, revenues still remained above pre-Ukraine war historical averages and profitability remained strong with a gross profit margin hitting 45%.

Dividend: The company’s board of directors approved a proposal to pay a dividend of USD 0.06 per share, which will be recommended to EKH’s annual general meeting next month.

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