By Amina El Farnawany
Qalaa Holding reported EGP 84.7m in net losses during the second quarter (Q2) of 2015, an improvement upon last year’s reported losses of EGP 188.3m.
“On a six-month basis, the bottom-line posted a loss of EGP 196.9m, a 53% improvement compared to the first half (H1) of 2014, which reported losses of EGP 420.2m,” the company said in an official statement
The company reported revenues of EGP 2.08bn for Q2 of 2015, increasing by 33.7% in comparison with the same period last year.
“On a six-month basis, revenues climbed 37.8% year-on-year (YoY) in H1 of 2015 to EGP 4.03bn,” the company added. “EBITDA [earnings before interest, taxes, depreciation, and amortisation], meanwhile, stood at EGP 565.1m in H1 of 2015, a 169% increase over H1 of 2014.”
The cement and energy sectors contributed significantly to the revenue growth, bringing in 70% of total revenues.
Hisham El-Khazindar, Co-Founder and Managing Director of Qalaa Holding, stated that bank debts were cut by EGP 365m. He expected an additional EGP 800m cut by December 2015, due to an agreement with Financial Holdings International (FHI).
Earlier this year, Qalaa Holding signed an agreement with FHI, whereby the latter would purchase some of the former’s assets. This will help the company exit some non-basic businesses and reduce consolidated debts, according to a Qalaa statement.
Under this deal, Qalaa will sell FHI its share of stakes in MENA Homes, Grandview and Dina Farms Land Companies, which will be separated from Dina for Agricultural Investments. El-Khazindar added that one of the company’s main goals for 2015 is deleveraging.
Other elements that are included in Qalaa Holdings’ 2015 strategy includes the acquisition of further stakes, selective investments in platform companies and share buybacks.