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Oriental Weavers, the Egyptian-based carpet manufacturing giant led by Yasmine Mohamed Khamis (Yasmine Khamis) and her siblings, has divested its minority stake in the National Bank of Kuwait – Egypt (NBK Egypt), in a strategic move aimed at unlocking value from previous investments.
The recent move, confirmed in a bourse announcement, revealed that Oriental Weavers, majority owned by the Khamis family, renowned Egyptian multimillionaires, successfully sold off their 0.7-percent equity in NBK Egypt, equivalent to 3.5 million shares. These shares are valued at EGP 44.66 million ($1.45 million).
The company’s rationale behind this divestment is aligned with its strategy to streamline its focus on core business activities and shed non-core investments. Oriental Weavers, with its global footprint and production facilities in three countries, is one of the world’s largest producers of machine-made carpets.
The Khamis family, Egyptian multimillionaires, holds a majority stake of 56.58 percent in the company, which distributes its products in approximately 150 countries globally.
In the recently concluded second quarter of the fiscal year 2023, Oriental Weavers reported remarkable financial results. Consolidated revenues surged by 31-percent year-on-year, with a three-percent increase compared to the previous quarter, reaching EGP 4.256 billion ($137 million).
Export revenue, constituting 68 percent of the total revenues, witnessed a robust 34 percent year-over-year increase, with a 10-percent quarter-over-quarter growth. Meanwhile, local sales experienced a 25-percent year-over-year upswing, albeit with a 10 percent decrease quarter-over-quarter. These strong top-line figures were driven by localized price adjustments and the impact of currency devaluation.
Gross profit for the period amounted to EGP 594 million ($19.2 million), marking a significant 55-percent year-over-year increase and a six-percent growth compared to the previous quarter. This resulted in a corresponding margin of 14 percent, up from 11.8 percent in the second quarter of 2022.
