Oriental Weavers achieves strong Q3 2024 results amid global market growth

Oluwatosin Racheal Alabi -

Key Points

  • Oriental Weavers achieved a 44% year-on-year revenue growth in Q3 2024, reaching EGP 6,422 million ($129.39 million), with international markets contributing 69% of total revenues.
  • Gross profit rose 36% year-on-year to EGP 904 million, driven by pricing strategies and volume recovery, despite rising costs due to inflation and currency devaluation.
  • Strategic growth in Europe, the U.S., and the GCC fueled international sales, while domestic promotions and financing programs aim to counter volume declines in Egypt.

Cairo-based Oriental Weavers, the world’s leading machine-woven carpet manufacturer, reported a remarkable forty-four percent year-on-year revenue increase for Q3 2024, reaching EGP 6.42 billion ($129.39 million). International markets drove this performance, contributing 69 percent of total revenues, with a fifty-three percent year-on-year growth fueled by volume recovery and currency devaluation.

Domestic revenues in Egypt grew by twenty-seven percent year-on-year, supported by a thirty-two percent increase in average selling prices. However, this was partially offset by a three percent decline in volumes as consumers sought more affordable alternatives.

Despite a forty-five percent rise in costs of goods sold (COGS) to EGP 5.52 billion ($111.14 million), Oriental Weavers recorded a gross profit increase of thirty-six percent, reaching EGP 904 million ($18.18 million). Gross profit margins narrowed slightly to 14.1 percent due to inflationary pressures and higher costs of dollar-denominated raw materials. Adjusted gross profit margins for the nine-month period improved to 16.5 percent, demonstrating operational resilience.

International markets drive robust growth

Oriental Weavers experienced strong performance in its key international markets:

  • Europe: Sales surged by sixty-seven percent year-on-year, driven by promotional campaigns and increased demand for remodeling projects amid a housing shortage.
  • Gulf Cooperation Council (GCC): Revenues grew by thirty-one percent year-on-year, supported by higher average price points and expansion into e-commerce and retail channels.
  • United States: Continued recovery in volumes bolstered revenues, reflecting successful market strategies.

These results align with Oriental Weavers’ strategic focus on global market growth through price adjustments and tailored promotional efforts, ensuring consistent revenue gains despite currency challenges.

Domestic strategies to stimulate demand

To counter domestic volume declines, Oriental Weavers launched end-of-year promotions and consumer financing programs. The tufted segment performed well, with a twenty-three percent year-on-year volume increase in Q3 2024, driven by new product offerings and targeted marketing initiatives.

The hospitality segment also excelled, recording a fifty-eight percent year-on-year sales increase, boosted by installations for international hotel chains like Hilton, Marriott, and Mövenpick. This reflects the company’s ability to secure high-margin, premium projects in global markets.

Positioned for sustained growth

Oriental Weavers’ Q3 2024 results highlight the company’s ability to navigate global challenges while leveraging international opportunities and local strategies. With continued focus on innovation, promotions, and high-value markets, the company is well-positioned to maintain growth and operational strength in the quarters ahead.