It’s earnings season: Beltone, Egypt Kuwait Holding, and Alexandria Container and Cargo Handling became the latest big name companies to release their earnings in an already busy month for releases.

BELTONE RINGS OUT ANOTHER TERM IN THE GREEN-

Beltone Holding continued its profitability streak in 1H 2024, recording a net income after tax and minority interest of EGP 817 mn compared to a loss of EGP 146 mn in 1H 2023, according to the company’s latest earningsrelease(pdf) and an accompanying statement(pdf). The company’s operating revenue grew ninefold y-o-y to EGP 2.9 bn during the period.

On a 2Q basis: Beltone Holding recorded a net operating profit of EGP 998 mn, compared to just EGP 6.1 mn in the same period last year. The company’s operating revenue rose 822% y-o-y yo EGP 1.6 bn.

The growth was underpinned by a strong performance at its NBFIs: Operating revenue from its NBFIs segment grew nearly 13x y-o-y to EGP 2.4 bn during 1H 2024, contributing 81.3% of total operating revenues. Key drivers of this segment’s growth were the leasing and factoring as well as consumer finance business lines, whose portfolios grew sixfold and fivefold y-o-y, respectively. The segment was further buoyed by expanded offerings, including its mortgage finance business, which captured a market share of 22.3% in 1H 2024.

As well as its investment bank: Beltone Investment Bank’s operating revenue more than quadrupled y-o-y to EGP 471 mn in 1H primarily on the back of an expansion in securities brokerage operations. The platform accounted for 16% of the company’s consolidated revenue during the period.

What they said: “The growth reflects not only our financial success but also the strategic initiatives we’ve undertaken, such as expanding into high-impact areas like mortgage and venture capital. The transformation we’ve led goes beyond the numbers; it’s about reinforcing our position as a market leader and establishing a new benchmark in the financial services sector,” said Beltone CEO Dalia Khorshid.

ICYMI- Beltone last year turned the boat around following three years of losses: Last year was a turning point for Beltone after Abu Dhabi-based investment firm Chimera acquired a majority stake in the company in October 2022 and brought in Dalia Khorshid as CEO. The turnaround has included a full new management team, a full book of new policies and procedures, a record rights issue to recapitalize the business, and its transformation into a data-driven organization.

EGYPT KUWAIT HOLDING SEES NET INCOME AND REVENUES FALL IN 2Q

Egypt Kuwait Holding’s (EKH) attributable net income fell 32% y-o-y to USD 27.5 mn in 2Q 2024, after it revenues took a hit due to declining urea prices and the float of the EGP, the company said in its latest earnings release (pdf). The company’s revenues were down 21% y-o-y to USD 128.4 mn during the quarter. .

In detail: Revenues from the company’s fertilizer and petrochemical segment recorded a 20% y-o-y decrease to USD 73.0 mn. Meanwhile, revenues from the company’s investments in the energy and energy-related segment were down 13% y-o-y to USD 36.7 mn.

On a semiannual basis: EKH’s attributable net income fell 10% y-o-y to USD 90.1 mn during 1H 2024, while its revenues were down 17% y-o-y to USD 321.4 mn.

What they said: “Our portfolio companies have reported strong performance in local currency terms, but the recent devaluation of the EGP has impacted our consolidated group financial results when translating the financials of our EGP-operating subsidiaries into USD,” CEO Jon Rokk said.

ALEX CONTAINER SEES TOP AND BOTTOM LINE GROWTH-

Alexandria Container and Cargo Handling saw its net income after taxes rise 40% y-o-y to EGP 6.1 bn during the fiscal year 2023-2024, according to the company’s latest earnings release (pdf). Revenues increased 30% y-o-y to EGP 6.4 bn during the same period.

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