Qena Cement's 1Q20 cement sales surge to EGP47m

Qena Cement reports net profits surged to EGP47m (US$2.9m) in the 1Q20, compared to EGP12m for the same period of the preceding year. Standalone net sales revenues grew by 5.5 per cent in the quarter, while net debt shrank by 20 per cent, falling from EGP607m to EGP485m, compared to 1Q19.

The group has successfully increased its consolidated net sales revenues by 2.6 per cent, marking EGP816m in the 1Q20, versus EGP795m for the same period of the preceding year. Net sales revenues climbed to EGP363m in 1Q20, compared to EGP344m in 1Q19.

Meanwhile, expenses dropped by 28 per cent, recording EGP16m in 1Q20, against EGP22m for the same period in 2019.

Managing Director of Misr Cement Co (Qena), Eng Tarek Talaat, stated: "The phenomenal performance achieved in 1Q20 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 EGP73m in the FY20."

Mr Talaat added: "Despite challenges faced, the state's endeavours 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."