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Gourmet wants to push annual sales past EGP 9 bn by 2030 by adding two to three locations per year, CFO Tarek El Mahdi tells EnterpriseAM. The immediate pipeline includes a 500 sqm branch in Sodic West’s Ivory development and a 2.3k sqm flagship on 90th Street in 2H, followed by a New Giza branch in 1Q 2027.
Why it matters: The EGP 9 bn target is a leap from the EGP 2.7 bn in standalone revenues the company generated in 2025, according to its financial statement (pdf). The new openings will add to Gourmet’s existing footprint of 22 stores spanning Greater Cairo, Alexandria, El Gouna, and the North Coast. These ambitious growth targets follow the grocer’s blockbuster EGX debut in February, which saw its shares surge to the regulatory maximum of 40% on their first day of trading.
Doubling down on physical retail: While e-commerce and delivery channels now account for roughly 35% of sales, the luxury food retailer continues to emphasize on its physical footprint. Management views brick-and-mortar storefronts as the ultimate vehicle for walk-ins and impulse-driven purchases, with El Mahdi affirming that retail expansion remains the company’s primary growth engine. Store openings are not expected to place significant pressure on cashflows based on the company’s liquidity and its contract structure and liabilities with the developers, El Mahdi notes.
A solid first quarter
Gourmet reported a 47% y-o-y increase in net income to EGP 69.7 mn in 1Q 2026, according to its quarterly financials (pdf). The bottom line was supported by EGP 15.4 mn in other revenues, including EGP 10.8 mn in treasury bill yields. Excluding those T-bill yields, net income still increased roughly 25% y-o-y. Operating income rose 31% y-o-y to EGP 87.4 mn.
The income growth came despite mounting operating expenses. Selling and marketing costs rose 32% y-o-y to EGP 105 mn, while G&A expenses increased 40%.
Management expects stronger sales during the summer and 4Q holiday seasons to offset these fixed costs. The fourth quarter also benefits from a significant annual supplier rebate booked in December, El Mahdi says. To protect volume, the company has chosen not to fully pass recent cost increases on to customers, instead sharing part of the cost with clients such as delivery costs, he adds.
