Oriental Weavers said, on Monday, that it will participate in an initiative recently announced by the Ministry of Finance in which export companies will receive, by the end of 2020, 85% of the expert rebate dues in the period until June 2019.
The ministry’s programme is expected to substitute the protocols signed in 2019, which stated that the payment of rebates would take place over four years, in return for specific CAPEX injections. Oriental Weavers has stated that it believes it would be in the company’s best interests to receive the cash as one lump sum.
Oriental Weavers’ export rebate backlog stood at EGP 317m by the end of June 2019, with total dues amounting to EGP 509m as of July 2020. The company is also discussing several alternatives for the export rebates due from July 2019 until June 2020.
The group recorded revenues of EGP 4,079m in the first half (H1) of 2020, compared to EGP 5,236m in H1 of 2019, reflecting a 22% decline. It reported that its export revenues accounted for 63% of total revenues in H1 2020, reflecting a drop of 21%, while local sales declined by 23%, compared to H1 of 2020.