MM Group, a Cairo-based automobile and consumer electronics distributor led by Egyptian multimillionaire businessman Khaled Mahmoud, is struggling to outperform last year’s financial performance, with profits falling below $9 million in the first nine months of its 2022 fiscal year.
According to the group’s recently announced financial results, profits at the end of the first three-quarters of its 2022 fiscal period fell by more than 34 percent, falling from EGP328 million ($13.4 million) in the first nine months of 2021 to EGP216 million ($8.84 million).
The group’s revenue fell from EGP7.08 billion ($289 million) to EGP5.09 billion ($208.3 million), resulting in a double-digit fall in earnings, despite becoming a non-exclusive authorized distributor of Apple products in Egypt during the period under review.
Consumer electronics, which account for 74.3 percent of MM Group’s total revenues, and car sales, which fell by 72 percent in the first nine months of 2022, were the main causes of the drop in group revenue.
As a result of the decline in earnings, the group’s total assets slumped by 12.9 percent from EGP3.67 billion ($150.2 million) at the start of the year to EGP3.2 billion ($131 million) as of Sept. 30.
MM Group, a Cairo-based automobile, and consumer electronics distributor, operates Egypt’s largest distribution network through its diverse portfolio, which includes five divisions: automotive, consumer electronics, seamless pipes, telecom, and tractors.
Its customers include global brands such as Samsung, Vodafone, Huawei, Range Rover, Jaguar, Maserati, Bentley, Carrier, Bosch, and recently Apple, the world’s largest technology company.
Mahmoud, the chairman and managing director of MM Group, owns a significant 10.13-percent stake in the company, worth nearly $15.8 million at the time of drafting this report.
Under the leadership of Mahmoud, the group has grown its distribution network into one of Egypt’s largest by geographic coverage, leveraging a longstanding distribution platform that spans more than 40,000 points of sale with both distribution and retail channels.
