MM Group for Industry and International Trade, a Cairo-based automotive and consumer electronics distributor led by Egyptian multimillionaire businessman Khaled Mahmoud, saw its profit drop by more than 60 percent to $2.8 million in the first quarter of 2022.
The group’s net profit fell from EGP130.24 million ($7 million) in the first quarter of 2021 to EGP51.07 million ($2.74 million) in the first quarter of 2022, according to recently published financial results.
The drop in MM Group’s earnings during the period under review was primarily due to a double-digit decline in consumer electronics and automotive sales during the first three months of 2022, which resulted in the group’s net sales falling from EGP2.52 billion ($135.2 million) to EGP1.94 billion ($104.12 million).
Aside from the decline in net sales, the group’s net profit was harmed by foreign exchange losses of EGP5.13 million ($275,400), finance costs of EGP15.36 million ($824,400), and losses from subsidiary operations of EGP2.54 million ($136,320).
Despite earnings declines, the group’s total assets increased marginally from EGP3.673 billion ($196.8 million) to EGP3.674 billion ($196.9 million), while retained earnings increased from EGP877.74 million ($47.1 million) to EGP1.227 billion ($66 million).
MM Group operates Egypt’s largest distribution network through its diverse portfolio, which includes five divisions: automotives, consumer electronics, seamless pipes, telecom, and tractors. Its customers include international brands such as Samsung, Vodafone, Huawei, Range Rover, Jaguar, Maserati, Bentley, Carrier, and Bosch.
Mahmoud, the chairman and managing director of MM Group, owns a significant 10.13-percent stake in the company, worth nearly $13 million.
Under the leadership of Mahmoud and other Mahmoud family members, MM Group has grown its distribution network into one of Egypt’s largest by geographic coverage, leveraging a longstanding distribution platform that spans over 40,000 points of sale, with both distribution and retail channels.
In the first quarter of 2022, the group announced plans to begin selling Apple products in Egypt as part of its expansion plans following an agreement with Apple to become a non-exclusive authorized distributor of Apple products in the country.
