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Key points:
- El-Sewedy Electric, led by the Egyptian billionaire El-Sewedy family, reported a 33.33-percent year-on-year surge in consolidated net profit to EGP 4.23 billion ($82.53 million) in Q1 2024.
- El-Sewedy Electric’s gross profit increased significantly by 71 percent year-on-year, reaching EGP 961 million ($82.53 million) in Q1 2024, compared to EGP 562 million ($40 million) the previous year.
- The acquisition offer for 15 percent to 24.50 percent of El-Sewedy Electric by the UAE’s Electra Investment Holding was announced in May 2024.
An Egypt-based multinational electrical company El-sewedy Electric led by the Egyptian billionaire El-Sewedy family has reported a 33.33-percent year-on-year (YoY) surge in consolidated net profit to EGP 4.23 billion ($82.53 million) in the first quarter (Q1) of 2024 from EGP 3.17 billion ($65.76 million).
Consolidated revenues soared 35.70 percent YoY to EGP 45.24 billion ($950.94 million) in Q1 2024 from EGP 33.33 billion ($689.86 million), according to the interim financial results. This growth was driven by higher average selling prices, volume recovery, and the impact of EGP devaluation. International sales constituted 58 percent of total revenues, increasing by 12 percent year-on-year.
El-Sewedy Electric’s gross profit increased by 71 percent year-on-year, reaching EGP 961 million ($82.53 million), compared to EGP 562 million ($40 million) the previous year. This resulted in a gross profit margin of 19.1 percent, attributed to operational efficiency, the group’s reengineering efforts, and favorable pricing dynamics.
The basic and diluted earnings per share (EPS) hit EGP 0.202 ($0.0042) in Q1 2024, up from EGP 0.054 ($0.0011) in Q1 2023.
Ahmed El Sewedy, CEO of El-Sewedy Electric, said: “I am proud to announce that the company has maintained its growth trajectory and is reaching key operational milestones within its strategy. This quarter, we leveraged our diverse offerings and dynamic business model to achieve sales growth across all our segments.”
“Going forward, our ability to continue delivering growth and value to shareholders is underlined by our commitment to sustainability and innovation, which ensures that we are not just keeping pace with industry advancements but are also at the forefront of shaping the future landscape of integrated, infrastructure solutions,” El Sewedy added.
In May 2024, the Egyptian Exchange (EGX) announced details of an acquisition offer on between 15 percent and 24.50 percent of El-Sewedy Electric by the UAE’s Electra Investment Holding.
The EGX-listed company logged an 86.70 percent YoY surge in consolidated net profit to EGP 10.11 billion ($209.74 million) in 2023 from EGP 5.41 billion ($111.89 million) the year before.
El-Sewedy Electric, established in 1938 by the El-Sewedy family, has played a pivotal role in the electrical equipment manufacturing sector, notably across the Middle East and North Africa. With a commanding 68.1-percent stake, jointly held by Ahmed El-Sewedy and his siblings, Sadek and Mohammed, totaling 1,478,358,330 ordinary shares, the family’s collective stake in El-Sewedy Electric is valued at more than $1.2 billion.
Since its founding, the company has grown into a regional and international provider of energy, digital, and infrastructure solutions, with total assets amounting to $3.6 billion (EGP 61.27 billion) spread across 15 countries under the leadership of CEO Ahmed El-Sewedy.
Elsewedy Cables Qatar, a subsidiary of El-Sewedy Electric, has clinched a significant Engineering, Procurement, and Construction (EPC) contract from Technip Energies for a vital project linked to Qatar’s North Field South (NFS) Onshore Project. The project involves establishing electricity supply to NFS project facilities, including the design, engineering, procurement, and installation of two 400kV cables between the RLF-S substation and the new 220kV INTAKE SS-36500 substation.
Ahmed Fathy Elsewedy, managing director of Elsewedy Cables Qatar, expressed his satisfaction at being selected for such a critical project. He emphasized Elsewedy Cables Qatar’s commitment to Qatar’s infrastructure development, citing the company’s track record of delivering high-quality products and expertise.
Earlier this year, El-Sewedy Electric inaugurated the Elsewedy Industrial City (EIC) in the Kibaha District of Tanzania. Spanning an extensive 2.6 million square meters, EIC marks East Africa’s inaugural fully integrated industrial hub, strategically positioned just 15 kilometers from the Kwala Dry Port, connected by the Standard Gauge Railway (SGR).
The industrial city, projected to attract investments worth $400 million, embodies a diversified approach, incorporating key sectors such as building materials, engineering, food and beverages, and pharmaceuticals. It symbolizes not only economic collaboration but also a commitment to mutual prosperity between Egypt and Tanzania.
Meanwhile, Orascom Financial Holding (OFH), another company linked to Egypt’s Sawiris family, reported a consolidated net loss of EGP 22.81 million for Q1 2024, contrasting with a net profit of EGP 19.81 million from the same quarter last year. Despite a significant rise in revenues to EGP 2.25 million from EGP 917,000, the company’s financial performance was impacted by strategic adjustments, including the reduction of its stake in Beltone Financial Holding SAE in 2021.
