Qalaa Holdings of Egypt has reported total revenues of EGP14.9bn (US$945m), for its consolidated financial results for the year ended 31 December 2019, up 11 per cent YoY.
Qalaa's EBITDA remained steady at EGP1.3bn in FY19 and increased by 17 per cent YoY in the 4Q19 to EGP325m. Flat full-year EBITDA was largely the result of a 60 per cent YoY decline in ASEC Holding’s EBITDA in FY19.
The cement segment's performance was affected by an underperforming cement market in Egypt, and social and political unrest in Sudan which affected Al-Takamol Cement's performance during the year. However, the performance by cement-related operations was offset by strong EBITDA performance at TAQA Arabia, which was driven by profitable expansion across the company’s business segments and a growing contribution from its recently inaugurated solar power plant in Benban, Aswan.
Qalaa Holdings recorded a consolidated net loss after minority interest of EGP1.1bn in FY19 versus a net profit of EGP1.3bn last year. This includes EGP395.5m of provisions and EGP226.7m of impairments. It should be noted that FY 2018 profitability was driven by non-cash gains of EGP3.96bn related to the deconsolidation of Africa railways’ operational liabilities in both Kenya and Uganda.
COVID-19 Implications
"Qalaa like all businesses across the world is impacted by the repercussions of the COVID-19 pandemic and is taking all the necessary measures and deploying proactive strategies to help manage associated risks and minimise its impact," Mr Heikal said. "First and foremost is protecting the health and safety of our more than 17,000 employees, ensuring their well-being and empowering management teams across our portfolio to provide support and guidance needed during these critical times. I am pleased to report that, Qalaa continues to employ its full workforce and has not resorted to any layoffs."
