Egypt’s Qalaa Holdings posts $923k in FY 2015

Egyptian leading real estate company, Qalaa Holdings (CCAP) reports net loss after minority interest of 1,155.4 million Egyptian pounds ($123.000) on adjusted revenues of 8,214.6 million ($923.000) Egyptian pounds in FY 2015.

The company published Sunday a statement regarding consolidated financial results for the year ending 31 December 2015.

Thus, Qalaa’s statutory revenues booked on the company’s consolidated income statement in FY2015 came in at EGP 6,638.9 million (excluding contributions from sold assets during 2015). Contributors to Revenues (adjusted) on a full-year basis were weighted toward the cement (38% of total revenues) and energy segments (31%).

However, results were weighed down by 687 million Egyptian pounds in non-cash charges from impairments & write-downs booked in 4Q15 as part of the ongoing program to focus on the company’s selected subsidiaries in energy and infrastructure.

Discussing Qalaa’s 2015 results, Chairman and Founder Ahmed Heikal said: “Our goal for 2015 was to complete Qalaa’s transformation into a holding company through a four-pillar strategy, including deleveraging at the holding and platform company levels, driven in large part through the divestment of select business units; investment in future growth through the acquisition of additional stakes in key subsidiaries and the shepherding of Egyptian Refining Company (ERC) toward the start of production in 2017; selective investments within existing platform companies; and laying the groundwork for share buybacks using excess liquidity provided our stock continues to trade at a significant discount to its fair market value.”

On the restructuring front, Qalaa executed a total of eight exits in FY15 which generated total proceeds of c. EGP 2,400 million, more than 2.5x the value generated through three exits the previous year. Most notable of these exits were the sale of Qalaa’s 27.5% stake in Misr Cement Qena in 2Q2015, while in 4Q2015 the company further reduced its exposure to the cement industry with its business unit ASEC Cement divesting its stakes in subsidiaries ASEC Minya Cement and ASEC Ready Mix

Meanwhile, the company’s Agrifoods business unit Gozour concluded the sale of 100% of confectioner Rashidi El-Mizan as well as for the divestment of RIS assets in Sudan and El-Misrieen in Egypt.