Ezz Steel, the Cairo-based steel producer led by Egyptian billionaire Ahmed Ezz, faced a setback in its financial performance as it reported a net loss of more than $50 million at the end of the first quarter of 2023.
According to recently published financial results, Ezz Steel recorded a net loss of EGP1.66 billion ($53.7 million) in the first quarter of 2023, in stark contrast to the EGP785 million ($25.4 million) profit it achieved during the same period in 2022.
The significant loss can be attributed to an increase in the group’s operating expenses, which substantially impacted the earnings, despite a surge in sales.
During the first three months of 2023, Ezz Steel’s sales from January to March reached an impressive EGP27.84 billion ($900.9 million), marking a substantial 49.3-percent increase compared to the EGP18.64 billion ($603.2 million) generated in the corresponding quarter of the previous year.
Ezz Steel‘s total output of 5.14 million metric tonnes further solidifies its position as the dominant steelmaker in Africa and the Arab world, surpassing its competitors, Hadeed in Saudi Arabia and Emirates Steel.
Ezz, renowned as one of Egypt’s wealthiest businessmen and a prominent investor on the Egyptian Stock Exchange, holds a significant 60.7-percent stake in the steel behemoth, further bolstering his influence within the industry.
This loss during the first quarter of 2023 comes on the heels of an impressive financial performance in 2022 when Ezz Steel’s profit surged above $210 million.
The steel company achieved a notable 23.2-percent rise in profits, increasing from EGP 5.39 billion ($174 million) in 2021 to EGP 6.64 billion ($214.8 million) in 2022.
The double-digit surge in earnings was fueled by a remarkable 23.9-percent increase in revenue, from EGP67.81 billion ($2.2 billion) to EGP83.98 billion ($2.72 billion), as the company continued to leverage its robust capacity.