Egyptian billionaire Ahmed Ezz’s steel group posts $460-million profit in H1 2024

Feyisayo Ajayi -
Key Points
  • Ezz Steel posted a profit of $460.3 million in H1 2024, a sharp turnaround from its $16.68 million loss in the same period last year.
  • A 61.7% surge in steel sales, reaching $2.07 billion in H1 2024, drove Ezz Steel's recovery, aided by cost-cutting measures.
  • Ezz Steel's total assets grew 6.03% to $2.48 billion, while equity soared 173.91%, reflecting its strengthened financial position.

Ezz Steel, a Cairo-based steel producer led by Egyptian billionaire Ahmed Ezz, reported a profit of $460.3 million at the end of the first half of its 2024 fiscal year. This marks a substantial recovery from the loss the company recorded during the same period in 2023.

According to figures in its recently published consolidated interim financial statement for the first six months of 2024, the steel company was able to deliver a profit of EGP2.28 billion ($460.3 million), up from a loss of EGP809.78 million ($16.68 million) in the previous year, underscoring a remarkable rebound in its financial health.

Strong steel sales fuel recovery

Ezz Steel's turnaround was driven by a 61.7-percent surge in sales, rising from EGP62.26 billion ($1.28 billion) in H1 2023 to EGP100.68 billion ($2.07 billion) in H1 2024. The sales growth, alongside cost-cutting measures, helped reverse last year’s losses.

Stronger production and higher demand boosted the company's market share, Additionally, Ezz Steel managed to streamline its operations, maintaining tight control over costs, and contributing to the overall financial improvement.

Asset growth and shareholders’ equity surge

Ezz Steel, the top steel producer in the Middle East and North Africa, has a production capacity of 7 million tonnes a year at its Egyptian plants. It produces more than 5 million metric tonnes annually, outpacing rivals like Saudi Arabia’s Hadeed and Emirates Steel. Ahmed Ezz owns 66.45 percent of Ezz Steel, making him one of the wealthiest investors on the Egyptian Exchange.

Thanks to its profit position in the first half of 2024, Ezz Steel's total assets expanded by 6.03 percent, rising from EGP113.37 billion ($2.34 billion) in H1 2023 to EGP120.21 billion ($2.48 billion) in H1 2024. The increase in assets reflects the company’s strengthened position in the steel market, and its ability to leverage its resources efficiently.

The company’s equity skyrocketed by an impressive 173.91 percent, climbing from EGP1.3 billion ($26.70 million) in H1 2023 to EGP3.55 billion ($73.15 million) in H1 2024. This sharp rise in equity demonstrates Ezz Steel’s improving financial stability, which is expected to enhance its valuation on the Egyptian Exchange.