The earnings tsunami keeps on coming: More companies released their quarterly earnings yesterday — including EFG Holding, HHD, Edita, Raya Holding, and Telecom Egypt.

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EFG HOLDING REPORTS SOLID PERFORMANCE-

EFG Holding reports “another strong quarter:” EFG Holding saw its net income after tax and minority interest almost double y-o-y during 2Q 2024, recording EGP 791 mn, the company said in its latest earnings release (pdf). Revenues during the quarter rose 63% y-o-y to EGP 5.1 bn “bolstered by strong revenues generated from the Investment Banking division, in addition to positive growth recorded by the rest of the Group’s lines of business.”

The breakdown:

  • Investment bank EFG Hermes saw revenues climb 74% y-o-y to EGP 2.8 bn in 2Q 2024, while net income after tax and minority rose 72% y-o-y to EGP 305 mn. EFG Hermes’ “resilient performance … masked losses recorded by holding & treasury activities, which came in at EGP 503 mn in 2Q 2024.”
  • The company’s NBFI arm EFG Finance reported revenues of EGP 1.1 bn during the quarter, up 70% y-o-y, with all business lines posting growth — Valu’s revenues more than doubled, rising 117% y-o-y. EFG Finance’s net income jumped 210% y-o-y to EGP 267 mn, “on Leasing, Valu and Tanmeyah’s higher profitability.”
  • aiBank’s revenues also saw a 39% y-o-y increase to EGP 1.2 bn in 2Q 2024, “driven mainly by higher net interest income on the back of loan book growth and enhanced net interest margins,” the release read. The bank’s net income after taxes rose about 55% y-o-y to EGP 426 mn.

What they said: “Our second-quarter results demonstrate EFG Holding’s ability to navigate a challenging economic environment. In an era of unprecedented economic and geopolitical turbulence, marked by widespread inflation, currency devaluation, and volatile global markets, we not only navigated these challenges but also emerged stronger,” said group CEO Karim Awad in a separate statement (pdf).

The bigger picture: EFG Holding saw its net income after tax and minority interest increase by 103% y-o-y during the first half of the year to record EGP 2.6 bn and revenues were up 80% y-o-y during the six-month period to EGP 13.6 bn.

EDITA SEES REVENUES RISE, NET INCOME DIP-

A bittersweet quarter for Edita: Snackmaker Edita Food Industries saw its revenues 42.1% y-o-y to EGP 4.1 bn during the second quarter of the year, driven by an increase in prices and sustained demand, it said in its earnings release (pdf) for the quarter. However, the company’s net income dipped 18% y-o-y to EGP 313 mn during the period.

Driving the growth: More than half of the quarter’s revenues came from cake sales, which were up 47.7% y-o-y to record EGP 2.1 bn. The growth echoed through Edita’s smaller segments — bakery sales were up 21.1% and wafers up 74.1%.

Price hikes and volume growth helped drive revenue: Sales volumes grew by 6.9% y-o-y to nearly 1 bn packs during 2Q 2024, despite a 32.9% y-o-y increase in the average price per pack to EGP 3.96.

The company saw its revenues jump 41.7% y-o-y during the first half of the year to record EGP 8 bn. Its net income saw a 1% dip to record EGP 749.6 mn.

Overseas expansion: Export sales climbed 37% y-o-y to EGP 309.4 mn in 2Q 2024 — making up 7.7% of the company’s revenues.

RAYA HOLDING SHOWS STRONG GROWTH-

Raya Holding saw its net income after minority interest rose 124% y-o-y during the second quarter of the year to record EGP 323 mn, which the company attributed to the float of the EGP in March and its “favorable effect on profit margins for the group’s export-oriented units,” according to its earnings release (pdf). Revenues also ticked up 21% y-o-y to EGP 9.7 bn.

For the half: Raya Holding saw its net income after minority interest jump 128% y-o-y during the first half of the year to record EGP 654 mn. Revenues saw a 38% y-o-y increase to EGP 20.1 bn during the six-month period.

The breakdown: Raya’s trade and distribution business unit generated 40.8% of Raya’s total revenues for the half, reaching EGP 8.2 bn, a 28% y-o-y increase. The second biggest contributor was the firm’s IT arm, which recorded EGP 4.7 bn in revenues, an increase of 50% y-o-y.

TELECOM EGYPT’S REVENUES RISE, INCOME STEADY-

Telecom Egypt’s net income took a slight hit during 2Q 2024, falling 9% y-o-y to record EGP 2.6 bn, according to the company’s latest earnings release (pdf). Revenues were up 44% y-o-y to EGP 20.5 bn during the quarter.

On a semiannual basis: The company saw revenue rise 35% y-o-y to EGP 38 bn during 1H 2024, its net income fell 3% y-o-y to EGP 6.5 bn, driven by increased interest expenses and FX losses that were partially offset by “solid operational growth.”

HHD ACHIEVES SIGNIFICANT GROWTH-

Heliopolis Housing and Development (HHD) logged EGP 1.4 bn in net income in 2Q 2024, up 5,582% y-o-y, which the company partially attributed to “revenue from short-term

investments, which amounted to EGP 1 bn,” it said in its latest earningrelease (pdf). The real estate developer’s top line saw a 185% jump in comparison to the same period last year to record EGP 736.7 bn.

On HHD’s expansion agenda: HHD is finalizing the acquisition of a 52k acre plot in New Mansoura.

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