Qalaa Holdings Sees Remarkable Growth Amid Challenges in Q2 2024
In an impressive display of resilience, Qalaa Holdings, a prominent player in Africa’s investment sector, reported a staggering revenue of EGP 38.20 billion for the second quarter of 2024. This remarkable figure represents an annual increase of 64%, showcasing the company’s ability to thrive even under economically challenging circumstances, as noted in a recent report by Africazine.
The substantial growth can be attributed to the strong performance of its subsidiaries, notably the Egyptian Refining Company. Ahmed Heikal, the Chairman and Founder of Qalaa Holdings, emphasized the group’s robust operational results in his statement, asserting that “the top-line expanded strongly by 64% year-on-year, driven by the solid results achieved at the Egyptian Refining Company and further supported by broad-based growth across all subsidiaries.”
Despite the impressive revenue growth, Qalaa Holdings reported a net loss of EGP 1.40 billion by the end of June 2024. This decline is primarily attributed to an increase in non-operating expenses, including the revaluation of shares in Allied Corp and TAQA Arabia. However, Heikal framed these challenges positively, indicating that the operational strength and strategic focus on growth reflect the company’s resilience in challenging economic conditions.
Interestingly, ASCOM, another subsidiary within the Qalaa portfolio, achieved a remarkable Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of EGP 158.7 million, marking an impressive 80% year-on-year increase. This highlights the diverse strengths within Qalaa Holdings and its subsidiaries, further underscoring the company’s commitment to enhancing its performance across various sectors.
Hisham El-Khazindar, Co-Founder and Managing Director of Qalaa Holdings, also provided insights into the company’s financial maneuvers, revealing that the foreign senior debt purchase by QHRI has been finalized, positively impacting the company’s financial statements for Q2-24. El-Khazindar expressed confidence in the future, noting that the Egyptian Refining Company remains fully current on its scheduled debt payments and aims to start distributing dividends by 2025.
As Qalaa Holdings continues to navigate the complexities of the regional and domestic economy, the company’s strong cash flows and low debt levels position it favorably for future growth. The impressive performance in Q2-2024 is a testament to the firm’s strategic resilience and operational effectiveness, which will undoubtedly be a critical factor in sustaining its upward trajectory.
For ongoing updates and analyses on investments and economic growth in the region, stay tuned to Africazine.
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