Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Qalaa Holdings Reports First Consolidated Revenues of EGP 1.4 bn in 1Q14  Join our daily free Newsletter

MENAFN Press - 17/08/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN Press) Qalaa Holdings (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital) reported today its financial results for the three months ending 31 March 2014, its first full set of consolidated financials since the closing of a capital increase to EGP 8 billion that marked the decisive step of its transformation into an investment company.

Full subscribed capital increase to EGP 8 billion allowed Qalaa Holdings to take majority stakes in most of its subsidiaries in core industries including energy, cement, agrifoods, transportation & logistics and mining. Accordingly, Citadel Capital's consolidated financial statements are now prepared using a full consolidation method instead of the equity method used in previous years.

The company accordingly reports a 14% year-on-year rise in 1Q14 revenues to EGP 1,366.9 million, up from pro-forma revenues of EGP 1,203.6 million in the same quarter the previous year. Notably, gross profit surged 46% to EGP 238.1 million while EBIDTA was a positive EGP 29.0 million against a negative EGP 125.9 million in 1Q13.

Net losses in 1Q14 widened 7% year-on-year to EGP 231.9 million on the back of increased charges related to discontinued operations at portfolio companies including ESACO (a company of ASEC Holdings) as well as El-Aguizy, Elmisrieen, Enjoy and Mom's Foods (all at agrifoods company Gozour) and certain non-core companies. Management believes it possible that these charges could be recovered (in full or in part) upon the exit of the companies in question.

"The release of our first consolidated financials post the asset purchases made possible by our share issuance is a key milestone in our transformation into an investment company," said Qalaa Holdings Chairman and Founder Ahmed Heikal. "Most of our highest-profile companies made very good progress in the first quarter and we expect similarly strong performances in the second quarter, particularly from energy division standout TAQA Arabia and cement division units ASEC Minya and Misr Qena Cement.

"Heading into the second half of the year, Qalaa Holdings will continue to maintain a sharp focus on driving operational improvements across our investments, divesting non-core holdings, and investing in governance systems at the company and portfolio levels. From energy to infrastructure, the macroeconomic outlook that has long informed our investment theses is increasingly being vindicated by developments across our footprint, from Egypt to East Africa."

As part of Qalaa Holdings' program to shed non-core assets, the company exited in April 2014 its full majority stake in a leading Sudan-based bank (Sudanese Egyptian Bank) in a US 22 million sale to the Islamic Solidarity Bank of Sudan; Qalaa Holdings remains a large-scale investor in Sudan. In addition, the company expects to complete its divestiture of Sphinx Glass, a leading Egyptian producer of float glass and portfolio company of non-core platform GlassWorks, by the end of August 2014. Qalaa Holdings and Saudi Arabia's Construction Products Holding Co. (CPC) signed in June 2014 a sale and purchase agreement for the transaction, execution of which is scheduled for completion by the end of August 2014 upon satisfaction of all conditions precedent and the final transfer of shares.

Among those companies now fully consolidated are:
In Energy: TAQA Arabia, Egyptian Refining Company (ERC, pre-operational) and Mashreq (pre-operational);
In Cement: ASEC Holding;
In Agrifoods: Gozour and Wafra;
In Transportation & Logistics: Nile Logistics and Africa Railways;
Non-core platform companies including United Foundries (Metallurgy), Bonyan (Specialized Real Estate), Tanmeyah (a microfinance company under Finance Unlimited) and Sudanese Egyptian Bank (divested subsequent to 1Q14 on 27 April 2014 and thus fully consolidated this quarter).
Core platforms Tawazon (Energy) and ASCOM (Mining) as well as non-core platforms GlassWorks, Grandview, Pharos and Tanweer continue to be treated using the equity method (Share of Associates) on the basis that Qalaa Holdings does not have management control over them.

Operational Highlights
Energy division aggregate revenues increased by 25% y-o-y to EGP 364.5 million in 1Q14 and aggregate EBITDA increased by 12% to EGP 35.7 million. Improved results in the quarter are attributable to better performance across platform companies TAQA Arabia and Tawazon.
The Cement sector includes a Cement division and a Construction and Management division. In 1Q14, the rise in aggregate revenues and EBITDA was primarily derived from the Cement division and largely from the inclusion of ASEC Minya for the first time in the consolidated statements.
The Agrifoods sector saw a 26% y-o-y decrease in 1Q14 aggregate revenues and a 46% y-o-y drop in 1Q14 EBITDA. The dip comes mainly on the back of underperformance at Gozour portfolio company Rashidi El Mizan and Enjoy's facility stoppage. Also, Wafra currently faces difficulties in operations ranging from political and civil conflicts in South Sudan to technical problems in Sudan.
The Transportation & Logistics division posted aggregate revenues in 1Q14 of EGP 141.8 million, a 28% increase over the same period last year. Similarly, the sector witnessed a significant surge on the EBITDA level to a positive EGP 0.9 million as compared to a negative EGP 31.3 million in 1Q13. Although Nile Barges in Egypt and South Sudan completely stopped operations in 1Q14, Nile Logistics showed higher revenues y-o-y on the back of its stevedoring operations at sea ports.
In 1Q14, the 13.1% y-o-y growth of ASCOM's consolidated revenues to EGP 149 million and 109% increase in EBITDA to EGP 12.4 million was mainly due to proceeds from Egyptian quarrying operations' new geology contract with Matz Holdings Ltd.

Full financial statements and management's analysis of the performance of operational core platform companies as well as the firm's standalone and consolidated financial results are available for download at ir.qalaaholdings.com.


About Qalaa Holdings
Qalaa Holdings (CCAP.CA on the Egyptian Stock Exchange) is an African leader in infrastructure and industry. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in core industries including Energy, Cement, Agrifoods, Transportation & Logistics and Mining. To learn more, please visit qalaaholdings.com.

 


MENAFN Press




  MENA News Headlines
 Nov 1 2014 - Saudi- Trooper ambush suspect in court after long manhuntArab News
(MENAFN - Arab News) MILFORD Pennsylvania: Onlookers shouted 'Are you sorry' and 'Why did you do it' as state troopers led a suspect in a fatal police barracks ambush from his first court appearance ...

 Nov 1 2014 - Saudi- US judge rejects Ebola quarantine for nurseArab News
(MENAFN - Arab News) FORT KENT: A nurse who defied an Ebola quarantine in the state of Maine after treating patients in West Africa can travel unrestricted after a judge rejected the state's bid to ...

 Nov 1 2014 - Bombs at marketplaces near Baghdad kill 9 peopleArab News
(MENAFN - Arab News) BAGHDAD: Iraqi officials say bombs have struck marketplaces near Baghdad killing at least nine people.One bomb went off at a sheep market in the Iraqi capital's western suburb of ...

 Nov 1 2014 - Only men over 50 pray at Aqsa mosque amid tight securityArab News
(MENAFN - Arab News) JERUSALEM: Muslim men over 50 prayed at the Aqsa mosque in Jerusalem's Old City on Friday amid intense security a day after Israel closed all access to the sacred compound for ...

 Nov 1 2014 - Airstrikes hit Kobani ahead of entry by Kurdish forcesArab News
(MENAFN - Arab News) SURUC Turkey: US-led airstrikes hit Islamic State positions around the Syrian border town of Kobani on Friday in an apparent bid to pave the way for heavily-armed Kurdish ...

 Nov 1 2014 - Saudi- Mindshare celebrates 15th anniversaryArab News
(MENAFN - Arab News) Mindshare which is part of WPP is a global media agency network helping clients to make collaborative and adaptive decisions across their paid owned and earned marketing in ...

 Nov 1 2014 - MoH opens two women's health screening clinics at Riyadh mallsArab News
(MENAFN - Arab News) The Ministry of Health (MoH) is marking Breast Cancer Awareness Month in October with the launch of two new women's health screening clinics in Al Hayat Mall and Panorama Mall in ...

 Nov 1 2014 - Saudi- SABIC resin makes success in making windows for ultra-lightweight electric carArab News
(MENAFN - Arab News) A Saudi Basic Industries Corporation (SABIC)-made resin has been successfully used in making the windows of a new ultra-lightweight electric car concept developed by BMW-led ...

 Nov 1 2014 - Saudi- Johnson Window Films releases new window productsArab News
(MENAFN - Arab News) Recently Johnson Window Films began sales of new improved versions of energy-saving window film for both cars and buildings with solar control and heat insulation properties.The ...

 Nov 1 2014 - Etihad Airways to operate third daily Mumbai New Delhi flightsArab News
(MENAFN - Arab News) Etihad Airways the national airline of the UAE has announced that Mumbai and New Delhi will become its first destinations in India to be served with triple-daily flights ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help