Naguib Sawiris-led Orascom Financial Holding swings to consolidated loss in Q1 2024

Oluwatosin Racheal Alabi -

Key points:

  • OFH reported a consolidated net loss of EGP 22.81 million ($479,062.20) for Q1 2024.
  • Despite the loss, OFH’s revenues surged to EGP 2.25 million ($47,295) in Q1 2024, a substantial increase from EGP 917,000 ($43,539,160) in Q1 2023.
  • In 2021, OFH reduced its stake in Beltone Financial Holding SAE from 61.24% to 59.22%.

Orascom Financial Holding (OFH), a privately-owned investment company linked to Egypt’s Sawiris family, has reported a consolidated net loss of EGP 22.81 million ($479,062.20) for the first quarter (Q1) of 2024. This represents a sharp downturn from the net profit of EGP 19.81 million ($416,406.20) that was recorded in the same quarter of the previous year.

Despite this financial setback, OFH’s revenues soared to EGP 2.25 million ($47,295) in Q1 2024, a substantial increase from EGP 917,000 ($43,539,160) in Q1 2023, according to the interim financial results. The company reported a loss per share of EGP 0.0047 (0.000099) for the three-month period ending on 31 March 2024, in contrast to the earnings per share (EPS) of EGP 0.0050 ($0.00011) reported in the corresponding period the year before.

According to a report by Billionaires.Africa in 2021, OFH trimmed its stake in Beltone Financial Holding SAE to 59.22 percent from 61.24 percent. In a statement filed with the Egyptian Exchange, OFH disclosed that it sold 9 million shares at EGP 2.34 ($0.15) per share, totaling EGP 21.086 million ($1.34 million).

OFH is a technology-driven financial services investment company that seeks to invest in companies transforming the traditional financial services industry with innovative products and services. The company was founded in 1997 by the late Onsi Sawiris, a member of Egypt’s billionaire Sawiris family.

The billionaire was known for co-founding and serving as a managing partner of HOF Capital (alongside Fady Yacoub and Hisham Elhaddad) with an AUM of $200 million. At HOF, he focused on cloud-based technologies, fintech, and enterprise SaaS. OFH is currently led by his son, Naguib Sawiris.

Beltone Financial Holding SAE is an Egypt-based company operating within the diversified financial sector, focusing on investment banking and brokerage. The company provides brokerage services, asset management, investment banking, liquidity services in regional markets, and research and analysis services. Beltone is also developing an online trading platform, Beltone Trade, offering services ranging from access to fundamental analysis and up-to-date information to customizable conditional alerts, watchlists, and screens.

In 2023, OFH experienced a turnaround, achieving a consolidated net profit of EGP 20.45 million ($429,859), a notable improvement from the net loss of EGP 133.39 million ($2.8 million) recorded the previous year. However, the recent financial performance highlights the volatile nature of OFH’s results, with an important improvement in revenue not translating into profitability in the latest quarter. The company will need to address the factors contributing to its recent losses to ensure a return to profitability.

The Sawiris family’s influence in the financial and investment sectors remains significant, with OFH’s strategic moves reflecting its ongoing efforts to adapt and thrive in a dynamic market environment.

*HOF Capital is a venture capital firm backed by 70 of the world’s most influential families and organizations.

**Assets under management (AUM) is the total market value of the investments that a person or entity handles on behalf of investors.