Misr Cement Qena’s Consolidated Net Profits Surged to EGP 47 Million in 1Q2020
Misr Cement Qena (listed on the Egyptian Exchange EGX: MCQE), has proudly released its financial results for the first quarter of 2020; recording a leap with its consolidated net profits amounting EGP 47 Million, compared to EGP 12 Million for 1Q2019. The group has successfully increased its consolidated net sales revenues by 2.6%, marking EGP 816 Million in the 1st quarter of 2020, versus EGP 795 Million for the same period of the preceding year.
Thanks to the thrive witnessed in revenues encountered by plumped production costs and plunged SG&A expenses, Misr Cement Co. (Qena) has shown unrivalled accomplishments in the first 3-month of 2020. Standalone net sales revenues climbed by 5.5%, marking EGP 363 Million in 1Q2020, compared to EGP 344 Million in 1Q2019. 4% decrease in COGS per Ton, marking 560 EGP/Ton in Q1 20202 vs 584 EGP / Ton in Q1 2019. SG&A expenses dropped by 28%, recording EGP 16 Million in the first quarter of 2020, against EGP 22 Million for the same period in 2019.
Enhanced operational expenditure, promising production performance along with vast expansion across neighboring markets have significantly paved the way for EBITDA to hike by 23% y-o-y to EGP 59 Million in 1Q2020, versus EGP 48 Million in 1Q2019. Accordingly, net profits bloomed, scoring EGP 33 Million in the 1st quarter of 2020, compared to EGP 12 Million in the same period last year.
Misr Cement Co. (Qena)’s profitability blossomed as a fruitful outcome of the integrated synergies shared among the group’s subsidiaries and production plants. The company has meticulously set a wise strategy to competently manage its financial resources and has prodigiously narrowed debts by 20%, dropping from EGP 607 Million in 1Q2019 to EGP 485 Million in 1Q2020. Net Cash flow has freed up accordingly, marking EGP 48 Million in the first 3 months of the FY 2020, compared to EGP 12.5 Million in the exact same period of the preceding year.
In this regard, Managing Director of Misr Cement Co. (Qena), Eng./ Tarek Talaat stated: “The phenomenal performance achieved in 1Q2020 will greatly contribute to ease Coronavirus repercussions; as the Egyptian cement market is currently suffering excessive production met with declining consumption. Our auspicious financial results have way exceeded expectations and placed our operations ahead, fostering budgeted net profits of EGP 73 Million in the FY 2020.”
Shedding light on projected 2H2020 results, Talaat added: “Despite challenges faced, the State’s endeavors will shortly stand tall promising a better future for the Egyptian cement industry in the forthcoming period. With new cities emerging across Egypt; like New Damietta, New Mansoura, New Alamein, demand shall significantly prosper and the Egyptian cement industry will consequently flourish.”
Chairman of Misr Cement Co. (Qena), Lieutenant General/ Abd Al-Fattah Harhour, paid tribute to the notable efforts exerted by the company’s human assets, he said: “Misr Cement Co. (Qena) is enriched with its dedicated human capital, who diligently safeguarded production in the most critical times. Since the outbreak of Coronavirus, the company took upon itself to strictly comply with the recommendations of the Egyptian Ministry of Health & Population along with World Health Organization, securing a safe work environment. Our crisis management team has strived to enhance the company’s HSE strategies to properly curb the spread of Coronavirus at production facilities and headquarters.” Harhour added: “I would like to extend my sincere appreciation and gratitude to Eng./ Tarek Talaat, the Managing Director of Misr Cement Co. (Qena), for his well-known perseverance in making the most of the current happenings by renovating operational strategies to optimize profitability and production in the near future.”
Misr Cement Co. (Qena) was established in 1997, with a capital of EGP 300 Million and a capacity of 2 Million Ton/Year to manufacture an array of cement-based products and byproducts. The company holds a majority share of 60% in MINYA Portland Cement - with a plant capacity of 2 Million Ton/Year Cement and 100% in ASICO – Ready Mix with a production capacity of 500K m3/Annum Ready-mix Concrete, through 9 batch plants.
