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The joint stake of the influential Egyptian Mahmoud family in MM Group has gained $65.81 million (EGP1.03 billion) in 77 days. The increase in the market value of their stake came off the back of a sharp rise in the company’s share price following the issuance of bonus shares by its board of directors.
MM Group for Industry and International Trade is an Egyptian company operating in consumer electronics distribution and retail. Its distribution network in Egypt covers more than 40,000 points of sale.
Shares in the group have risen as of late as investors price in its impressive results for Q1 2021.
In its quarterly filings, the group posted $159.69 million (EGP2.51 billion) in revenues in Q1 2021, 12.6-percent higher than its revenues of $141.82 million (EGP2.23 billion) for Q1 2020.
The increase was driven by a 14.7-percent hike in its consumer electronic sales and a 33.5-percent increase in its auto sales, which offset a 25.2-percent decline in its telecom sales.
This led to a growth in profits from $6.78 million (EGP106.64 million) in Q1 2020 to $8.33 million (EGP130.98 million) in Q1 2021.
As of press time, 10:00 AM (UTC+1), July 14, shares in the group were trading at $0.460 (EGP7.23), or 15-percent higher than its opening price of $0.399 (EGP6.27) since the financial year began.
The group’s share price has increased from $0.424 (EGP6.66) on April 28 to $0.460 (EGP7.23) as of press time today, July 14. This translates to an eight-percent gain for shareholders in 77 days.
Aside from playing significant management roles, family members Mohamed Gamal, Hany Gamal, Khaled Gamal, Amr Salah, Shereen Amin, Mervat Amin, Rasha Amin and Rania Amin hold a joint controlling stake of 56.40 percent in the group.
The market value of their stake has increased from $184.89 million (EGP2.91 billion) on April 28 to $250.70 million (EGP3.94 billion) today.
This translates to a gain of $65.81 million (EGP1.03 billion) for the family in 77 days.
It is worth noting that $46.18 million of the family’s total earnings came from the distribution of bonus shares by the group’s board as dividends for the period ending Dec. 31. Meanwhile, $19.63 million of its earnings came from the an eight-percent rise in its share price.
MM Group is currently chaired by Khaled Mahmoud.
