Egyptian tycoon Ahmed El-Sewedy leads group to $186.4 million profit in H1 2024

Timilehin Adejumobi -

Key Points

  • Elsewedy Electric’s profit surged by 47.9% in H1 2024, reaching EGP9.1 billion ($186.4 million), driven by effective cost management.
  • Revenue grew by 47.4% to EGP102.63 billion ($2.1 billion), boosted by currency effects and increased sales in the cables segment.
  • CEO Ahmed El-Sewedy attributes robust financial performance to cost efficiency and the company’s adaptable business model.

Elsewedy Electric, a Cairo-based multinational cable, and electrical equipment manufacturer led by Egyptian businessman Ahmed El-Sewedy, reported a significant surge in profits for the first half of 2024, exceeding expectations despite challenging operating conditions.

According to figures contained in its interim financial statements for the six months ended June 30, 2024, the leading cable and electrical equipment manufacturer reported a 47.9 percent increase in profit, rising from EGP6.15 billion ($126 million) in the first half of 2023 to EGP9.1 billion ($186.4 million) in the corresponding period of 2024.

Elsewedy’s earnings hit record high

The significant boost in earnings is attributed to the group’s effective cost-management policies, which mitigated the impact of escalating costs from subcontractors and surging operating expenses. This, combined with a surge in revenue across all segments, contributed to the impressive financial performance.

During the period under review, Elsewedy Electric’s revenue increased by 47.4 percent, rising from EGP69.63 billion ($1.42 billion) in the first half of 2023 to an all-time high of EGP102.63 billion ($2.1 billion) in the first half of 2024. This growth was largely due to favorable currency translation effects that boosted income across all segments and increased sales volumes in the cables segment. The wires and cables segment led revenue growth, followed by turnkey projects.

CEO attributes growth to cost efficiency

Elsewedy Electric’s CEO, Ahmed El-Sewedy, credited the group’s robust performance to effective cost management and the company’s agile and adaptable business model. “During this period, Elsewedy Electric leveraged its expanding geographic footprint to pursue growth opportunities and reinforce our position as a global industry leader,” El-Sewedy stated.

El-Sewedy also emphasized the company’s focus on enhancing operational efficiency and maintaining a strong balance sheet as key strategies moving forward. “With a commitment to innovation and cost management, I am confident in our ability to achieve our growth goals and reach other key milestones,” he added.

Elsewedy Electric’s asset surge in 2024

Elsewedy Electric, founded in 1938 by the El-Sewedy family, has established itself as a key player in the electrical equipment manufacturing sector in the Middle East and North Africa. Under Ahmed El-Sewedy’s leadership, the company has expanded its reach, becoming a provider of energy, digital, and infrastructure solutions on a global scale.

The company’s total assets grew significantly during the first half of 2024, rising from EGP151.44 billion ($3.1 billion) at the end of 2023 to EGP210.42 billion ($4.3 billion) by June 30, 2024. In addition, Elsewedy Electric saw substantial increases in total equity and retained earnings, which grew to EGP52.3 billion ($1.07 billion) and EGP36.73 billion ($751.8 million) respectively.