The equity stake of Egypt’s Elsewedy family in Elsewedy Electric has fallen by $162.21 million (EGP2.54 billion) in value since the start of 2021, as the share price in the global electrical product manufacturer declined.
Elsewedy Electric is an Egypt-based joint-stock company established by the Elsewedy family in 1938.
Since its founding, the company has grown into a regional and international provider of energy, digital and infrastructure solutions, with total assets of $3.6 billion (EGP56.49 billion) spread across 15 countries.
As of press time, 8:20 AM (UTC+1), July 13, shares in the company were trading at $0.516 (EGP8.09), or 87 basis points higher than its opening price of $0.512 (EGP8.02) yesterday, July 12.
Since the year began, shares have declined from $0.626 (EGP9.81) to $0.516 (EGP8.09) as of today.
This translates to an 18-percent loss for shareholders, as investors and bargain hunters sell down their stakes in reaction to the company’s bland financial performance in 2020.
In its 2020 earnings release, Elsewedy Electric posted a 25-percent drop in net income from its minority interest due to disruptions caused by the COVID-19 pandemic, from $256.40 million (EGP4.02 billion) in 2019 to $193.26 million (EGP3.03 billion) in 2020.
Despite the effects of external forces, the company reported a 66-percent surge in profits in Q1 2021 from $29.57 million (EGP463.70 million) in Q1 2020 to $49.08 million (EGP769.49 million).
The Elsewedy family currently holds a 68-percent stake in the integrated cable and electrical product manufacturer, with Sadek, Ahmed and Mohammed Elsewedy playing significant roles in running the business.
The market value of their joint equity stake, which amounts to 1,478,689,860 ordinary shares, dropped from $925.19 million (EGP14.51 billion) on Jan. 4 to $762.97 million (EGP11.96 billion) as of the opening of the market this morning.
This translates to a $162.21-million (EGP2.54 billion) loss for the family since the year began.
