Qalaa Holdings first-half revenues up by a third, Egypt

Qalaa Holdings (formerly Citadel Capital) released its consolidated financial results for the
quarter ending 30 June 2015, reporting revenues of EGP2086.8m, up 33.7 per cent compared to the same quarter of last year. In the second quarter alone, the energy and cement divisions contributed some 70 per cent of total revenues.
 
On a six months basis, revenues climbed 37.8 per cent YoY in 1H15 to EGP4,034.3m. EBITDA meanwhile stood at EGP565.1m in the first half of 2015, a 169 per cent increase over 1H14.

Revenue growth was driven by strong performance at TAQA Arabia’s fuel marketing arm, having recorded top-line YoY growth of 72 and 73 per cent in 2Q15 and 1H15, respectively.

In the cement division, ASEC Cement’s Sudan subsidiary Al-Takamol also made a strong contribution to Qalaa’s top-line growth, with the cement unit’s revenue recording 96 per cent and 121 per cent YoY.

Effect of exit from Qena Cement
On the restructuring front, the first six months of 2015 have also witnessed several developments,
including ASEC Holding’s sale of its 27.5 per cent stake in Qena Cement, which resulted in a gain from sale of investment equivalent to EGP67m booked in 2Q15. Proceeds from the sale
were utilized to fully deleverage at ASEC Cement and partially deleverage ASEC Holding, with the balance being distributed to shareholders.

“Our exit from Misr Qena is one of several developments taking place during 2015 that play into our risk reduction strategy and our ongoing deleveraging program,” said Ahmed Heikal, chairman and Founder of Qalaa Holdings.

“Qalaa’s ongoing restructuring efforts meanwhile continue to reflect positively on its financial performance, with significant improvements at the EBITDA level , in line with our previously  announced guidance, and a continued narrowing of its bottom-line losses, which recorded a 53 per cent YoY improvement in the first half of 2015,” Heikal added.