Khaled Mahmoud's MM Group records $12 million profit in 2022

Cairo-based automobile and consumer electronics distributor MM Group, which is led by Egyptian multimillionaire businessman Khaled Mahmoud, experienced a notable decrease in earnings at the end of its 2022 fiscal year.

The company’s profits fell to $12 million, marking a significant decline.

The recently published financial results of the group indicate a 7.78-percent decrease in its profit at the end of the 2022 fiscal year.

The figures reveal a drop from EGP 375.46 million ($12.15 million) in 2021 to EGP 346.25 million ($11.2 million) in 2022.

The dip can be attributed to a double-digit decline in the group’s revenue.

The group faced challenges in its operating environment, which were exacerbated by supply chain disruptions and semiconductor shortages leading to production difficulties.

As a result, the company experienced a 23.3-percent decline in revenue, dropping from EGP 9 billion ($291.25 million) to EGP 6.9 billion ($223.3 million).

Despite this double-digit decline in revenue, the group’s earnings only fell by less than eight percent. This was made possible by the efficiency of the group’s cost-cutting strategies.

Although the group’s profit showed potential for growth, higher input costs and a surge in operating expenses had a negative impact on the group’s earnings during the period under review.

As a result of the decrease in earnings, MM Group experienced a 5.26-percent decline in its total assets at the end of its 2022 fiscal year.

The figures dropped from EGP 3.67 billion ($118.8 million) to EGP 3.49 billion ($112.9 million).

MM Group boasts Egypt’s largest distribution network, which is made up of five divisions: automotive, consumer electronics, seamless pipes, telecom, and tractors.

With this diverse portfolio, the company is able to effectively operate and cater to a wide range of industries.

The group’s customer base includes renowned international brands such as Samsung, Vodafone, Huawei, Range Rover, Jaguar, Maserati, Bentley, Carrier, and Bosch.

As the chairman and managing director of the company, Khaled Mahmoud owns a significant 10.13-percent stake valued at nearly $13 million.

Under the leadership of Mahmoud, MM Group has grown its distribution network into one of Egypt’s largest by geographic coverage, leveraging a longstanding distribution platform that spans over 40,000 points of sale, with both distribution and retail channels.