Post for Investment (PFI), affiliated to Egypt Post, achieved profits of EGP 504m in 2022, compared to EGP 209m in the previous year, with an annual growth rate of 71%.
This came in the business results announced by the PFI on Tuesday.
According to a press release from the PFI, the net profit margin increased from 34% during 2021 to 58% during the fiscal year ending in 2022, which is the highest rate the company has recorded since its inception.
Mohamed Tarek, the Chairperson of the PFI, said that the executive management is working to implement the Egypt Post’s plan to transform PFI into an investment entity.
He pointed out that the management has also adopted a plan to restructure the company, in parallel with working on improving the quality of assets in particular, and the financial position of the company in general, as well as applying the policy of controlling expenses and expenditures, with the aim of enhancing the company’s profit margins and raising the rate of operational efficiency.
The company’s recorded revenues during 2022 witnessed a slight decrease of 0.5%, compared to 2021, while the gross profit margin increased from 47% in 2021 to 71% in 2022.
Tarek added that the operating profit margin jumped from 33% in 2021 to 58% in 2022, and the operational efficiency ratio (the ratio of activity costs and general and administrative expenses to revenues) witnessed a significant improvement, as it decreased from 59% in 2021 to 38% in 2022.
Ahmed Abdullah, CEO of PFI, said that the company’s strategy has succeeded in reducing the volume of short-term liabilities by 66% during 2022, and this policy has led to a significant improvement in the company’s internal liquidity ratios.
He added that the PFI has succeeded in increasing the volume of cash dividends distributed to the main shareholder, represented by Egypt Post, by 54% during 2022 compared to the volume of distributions in 2021.
He explained that the executive management has achieved the first phase of the plan to restructure the company during 2022.
The first phase of the restructuring plan has included the following elements:
• Attracting the required calibres in order to complete building the team and the targeted functional structure of the company.
• Redefining the mission of Post for Investment Company as the investment arm of the Egyptian Post Authority and organizing the relationship between the authority and the company.
• Re-presenting the company in the market as an effective entity in the field of direct investment, developing the company’s objectives, and setting plans to expand its activities.
• Developing a new strategy for the company that reflects its targeted role, in addition to setting investment controls, limits, mechanisms and steps for investment decision-making.
• Developing the structure of the Board of Directors and its committees to enhance the level of coordination with the Postal Authority and increase the flexibility, speed and efficiency of the company’s decision-making mechanisms.
• Completing the definition of governance requirements and the development of internal control systems, as Post for Investment Company signed a cooperation protocol with the National Institute of Governance to develop internal control systems, whether for the PFI or its subsidiaries.
• Restructuring the existing investment portfolio, and exiting from some investments that are not in line with the company’s new investment strategy. In this regard, it is worthy to mention that PFI has divested one of its investments that was located in the United States of America, provided that the exit proceeds will be allocated for projects related to the development of the Egyptian Post’s infrastructure and the digitization of its services.
In a nutshell, PFI is the investment arm of Egypt Post, whose mission is to invest in the Egyptian market and other emerging markets with the aim of creating tangible economic value on an ongoing basis. The current capital of the company is worth EGP 5.7bn, which has been strategically invested to achieve attractive long-term financial returns, besides the social return.