Ezz Steel, a Cairo-based steel producer led by Egyptian businessman Ahmed Ezz, demonstrated remarkable financial resilience at the end of the 2022 fiscal year.
The company’s continued focus on optimizing its capacity and cost-cutting strategies translated into a significant improvement in its financial performance, as evidenced by the recently released financial statement.
The figures contained in its recently published financial results revealed that the steel company achieved a 23.2-percent rise in profits, from EGP 5.39 billion ($174 million) in 2021 to EGP 6.64 billion ($214.8 million) in 2022.
The double-digit surge in the group’s earnings was fueled by an impressive 23.9-percent increase in the group’s revenue from EGP67.81 billion ($2.2 billion) to EGP83.98 billion ($2.72 billion), as it continued to capitalize on its robust capacity.
Besides the surge in steel sales that bolstered the group’s earnings, the group’s effective cost-cutting strategies also contributed to keeping operating costs at their lowest during the period.
With a total production output of 5.14 million metric tonnes, Ezz Steel stands out as the largest steelmaker in Africa and the Arab world, far surpassing competitors such as Saudi Arabia’s Hadeed and Emirates Steel.
Ezz, a prominent investor on the Egyptian Stock Exchange and one of the richest businessmen in Egypt, owns a controlling 60.7-percent stake in the steel behemoth, positioning him as a significant industry player.
Following the company’s impressive financial performance, investors rekindled their interest in the group’s shares, resulting in a 3.37-percent hike in the company’s share price and pushing its market capitalization above $710 million.
As of the time of writing, Ezz’s stake in the company has increased in value to $430 million, solidifying his status as not only one of the wealthiest investors on the Egyptian Exchange but also one of the richest businessmen in the country.