A whole lotta earnings: The 3Q earnings season is still in motion — we have earnings from Egypt Kuwait Holding, Contact Financial, IDH, GB Corp, Talaat Moustafa Group, and Juhayna.

CONTACT FINANCIAL SEES INCOME RISE-

Contact Financial’s bottomline inches higher: Non-banking financial services firm Contact Financial’s normalized net income jumped 66% y-o-y to record EGP 261 mn during the third quarter of the year, according to its latest earnings release (pdf).

Driving the jump: The firm recorded growth across the board during the three-month period, with net income from its financing division seeing a 72% y-o-y increase to record EGP 204 mn thanks to higher lending volumes. This came despite dips across the division’s two largest segments, auto and consumer finance, which dragged new financing down 13% y-o-y to EGP 3.6 bn during the quarter. Net income from its ins. division was up 12% y-o-y to record EGP 23 mn.

The bigger picture: Contact saw its normalized net income shrink 12% y-o-y to record EGP 477 mn throughout the first nine months of the year thanks to a 23% y-o-y dip in net income from its financing division.

More expansion ahead? The third quarter of 2024 saw the company step into the GCC market, setting up a branch in Dubai to cater to Egyptian expats there. “With our inaugural Dubai branch marking the group’s initial foray into the GCC market, over the coming period we will continue exploring opportunities to expand further into the GCC region and beyond,” management said.

GB CORP REPORTS 3Q EARNINGS-

GB Corp’s net income saw a 12.6% y-o-y increase during 3Q 2024 to EGP 746 mn, according to the company’s most recent earnings report (pdf). Revenues rose 85.0% y-o-y to EGP 16.2 bn during the same quarter.

The breakdown: GB Corp’s GB Auto recorded revenues increasing 88.1% y-o-y to EGP 14.4 bn during the quarter “driven by enhanced pricing strategies and an improved product mix.” The group’s NBFS arm GB Capital saw its revenues — before intercompany eliminations — rise 69.8% y-o-y to record EGP 2.0 bn.

On a 9M basis: Net income rose 41.2% y-o-y to EGP 1.8 bn in 9M 2024 and revenues grew 81.4% y-o-y to EGP 35.4 bn.

Looking ahead: “We are confident in our capacity to navigate challenges and capitalize on emerging opportunities from the ongoing economic reforms and improving market conditions to achieve sustainable long-term growth and create value for our shareholders,” said CEO Nader Ghabbour.

EKH’S BOTTOM LINE DOWN IN 3Q-

Our friends at Egypt Kuwait Holding (EKH) saw its attributable net income fell 5% y-o-y during 3Q 2024 to record USD 34.1 mn, according to its latest earnings release (pdf). Revenues saw a 24% y-o-y decrease, coming in at USD 154 mn for the same quarter, on the back of weaker global urea prices and the float of the EGP.

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On a 9M basis: EKH saw its attributable net income decrease by 9% y-o-y to record USD 124 mn during the first nine months of 2024. Revenues came in at USD 475 mn for the period, marking a 19% y-o-y decrease. The company’s fertilizer and petrochemicals segment accounted for some 54% of the group’s revenues.

Looking ahead: “As we approach year-end, the outlook for EKH remains promising. We are well-positioned to capitalize on recent expansions, particularly as we anticipate local price recovery to further materialize and take hold. Our focus remains on maximizing bottom-line performance and enhancing operational efficiencies across our diversified portfolio,” CEO Jon Rokk said.

IDH REPORTS A 38% JUMP IN INCOME-

IDH sees a 38% increase in income: Regional diagnostic services provider Integrated Diagnostics Holdings’ (IDH) net income jumped 38% y-o-y to EGP 244 mn in 3Q 2024, according to the company’s earnings release (pdf). Revenues for the period grew 36% y-o-y to EGP 1.6 bn.

It was an eventful quarter for IDH: During 3Q 2024, the company completed its delisting from the EGX. “While our listing on the EGX has helped us increase our local visibility in the market where we generate the majority of our business, we are excited to build on the original path we started on the LSE,” CEO Hend El Sherbini said.

On a 9M basis: Net income saw a 87% y-o-y increase to record EGP 724 mn in 9M 2024, “boosted by the substantial increase in foreign exchange gain from intercompany transactions.” Revenues increased 34% y-o-y to record EGP 4.1 bn.

Egypt drove the growth, contributing 82.1% of the company’s total revenues recorded during 9M 2024. The company recorded EGP 3.4 bn in revenues from its Egypt operations during the nine-month period, marking a 35% y-o-y increase. This was driven by an increase in tests performed and an increase in prices that pushed up the average revenue per test. Jordan operations came in second, contributing 16.1% of total revenues, followed by Nigeria, Saudi Arabia, and Sudan.

TMG REPORTS 236% SURGE IN NET INCOME-

TMG sees net income rise 236% in 9M 2024: Real estate giant Talaat Moustafa Holding Group (TMG) reported a net income of EGP 9.1 bn in 9M 2024, up 236% y-o-y from EGP 2.7 bn, according to the company’s latest earnings statements here (pdf) and here (pdf). Revenues for the period also rose 52% y-o-y to EGP 28 bn.

Driving the growth were TMG’s Saudi and North Coast expansions: TMG two major projects launched this year — the Benan sustainable city project in Saudi Arabia and the North Coast’s SouthMed — saw TMG rake in over EGP 53 bn in sales for Banan and over EGP 280 bn for SouthMed. Total sales for the first nine months of the year reached EGP 454 bn, a nearly 340% y-o-y increase over the EGP 93 bn in sales generated last year.

TMG’s hospitality operations also helped push the top and bottomline up: The company also added 2.5k rooms to its total stock during the period, with hospitality sector revenues increasing 190% y-o-y to EGP 7.8 bn in 9M 2024. The increase in keys also helped drive higher recurring income revenue, which increased 2.4x in 9M 2024 from the same period last year and contributed 43% of total consolidated revenue in the nine-month period. TMG also noted in its press release that the company had paid off its USD 217 mn in hotel sector FX debt during the nine month period, eliminating significant FX risk.

JUHAYNA’S INCOME SOARS IN 3Q-

Juhayna sees income, revenues jump in 3Q: Dairy giant Juhayna saw its net income jump 197% y-o-y to EGP 958 mn during 3Q 2024, according the company’s latest earningsrelease (pdf). Revenues increased by 57% y-o-y to reach some EGP 6.9 bn during the quarter, “driven by the continued success of both the concentrates segment and the export of finished products.”

In 9M 2024: The company reported a 177% y-o-y increase in net income during the first nine months of the year to record EGP 2.4 bn. Revenues during the same period came in at EGP 18.3 bn, up 64% y-o-y.

Driving the growth: “The company experienced a significant surge in export revenues across concentrates, dairy, fermented and juice categories,” seeing a 308% y-o-y increase in 3Q to reach EGP 1.1 bn and a 223% jump in 9M 2024 to record EGP 3.0 bn. Juhayna hiked its prices during the quarter, helping offset rising operational costs.

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