Egyptian tycoon Medhat Khalil loses $10 million as Raya Holdings’ profits tumble below $14 million in 2022

Raya Holding for Financial Investments (Raya Holdings), the investment group founded by Egyptian businessman Medhat Khalil, experienced a double-digit decline in earnings during its 2022 fiscal year, with profits falling below the EGP420-million ($14 million) mark.

This led to selling pressure on the Egyptian Exchange, resulting in a 9.8-percent drop in Raya Holdings shares and a $10-million reduction in the market value of Khalil’s stake in the group.

According to figures contained in its recently released financial results, Raya Holdings achieved a 10 percent increase in revenue, rising from EGP16.85 billion ($545.3 million) in 2021 to EGP20.41 billion ($660.5 million).

The robust boost in the revenue of Raya Holdings can be attributed to the resilient performance of its diversified operations, including information technology, data center outsourcing, contact centers, consumer electronics, food and beverage, land transport, and e-payments.

Despite this surge in revenue, the group’s profit declined by more than 22 percent during the period, from EGP541.38 million ($17.5 million) to EGP419.23 million ($13.5 million), mainly due to the rising costs and operating expenses that adversely affected profit margins.

The increase in costs and expenses during the period can be attributed to the group’s investment in new operations, expansions across its business lines, and the administrative costs associated with the group’s buildings.

Medhat Khalil suffers $10 million loss as Raya Holdings shares tumble on EGX

Raya Holdings is a prominent Egyptian investment conglomerate that was formed in 1999 by merging entities owned by Khalil and Orascom Group.

Presently, Khalil owns a majority stake of 58.1 percent, which translates to 1,245,661,205 shares.

During today’s trading session on the Egyptian Exchange, the group’s shares experienced a significant decline of 9.8 percent, dropping from a price of EGP2.55 this morning to EGP2.3 at the time of writing this report.

As a result of this price drop, the market value of Khalil’s stake fell by EGP311.4 million ($10.08 million), from EGP3.18 billion ($102.8 million) this morning to EGP2.86 billion ($92.72 million).