Oriental Weavers, an Egypt-based carpet manufacturer run by leading business executive Yasmine Mohamed Khamis, recorded its highest-ever revenue of EGP11.4 billion ($725.2 million) at the end of 2021, owing to demand-pull dynamics in the global carpet industry.
This strong performance prompted the board to recommend a dividend of EGP675 million ($42.9 million) to its shareholders, translating to a dividend payment of EGP1 ($0.0636) per share.
Oriental Weavers, with production facilities in three countries, is one of the world’s major makers of machine-made carpets.
Under the leadership of Yasmine Mohamed Khamis and other members of the Khamis family, who together possess a 56.58-percent controlling interest in the leading carpet maker, the Egypt-based group sells products in around 150 countries worldwide.
Despite a double-digit increase in revenue, it reported a single-digit increase in net profit from EGP1.11 billion ($70.6 million) in 2020 to EGP1.21 billion ($77 million), owing to a decline in service revenue and a sustained increase in administrative and distribution costs, which weighed on earnings during the period.
As a result of the sustained surge in demand during the period, the carpet manufacturer reported a 20-percent increase in revenue from EGP9.48 billion ($603 million) in 2020 to EGP11.4 billion ($725.2 million) at the end of 2021, driven by strong growth across all operating segments as a result of the demand-pull dynamics observed in the international carpet market.
Over the year, the management implemented two rounds of price increases. The first was a price increase in April in its woven segment. The second was a price increase in its tufted segment in August. The price hikes cushioned its rising input and operating costs, which reflected positively on the group’s margins.
In response to the strong financial performance, shares in the major carpet manufacturer were trading at EGP8.32 ($0.529) on the Egyptian Stock Exchange, 3.23-percent higher than the opening market price on Wed., Feb. 23.
The market capitalization of the carpet manufacturer is now assessed at EGP5.53 billion ($351.7 million), while the Khamis family’s majority stake worth EGP3.1 billion ($199.1 million).
