The consolidated financial statements of Ezz Steel Company, during the first nine months of this year, showed an increase in the company’s profits by 52%, on an annual basis.
The company stated in a statement to the Egyptian Stock Exchange, today, that it achieved profits amounting to 5.7 billion pounds during the period from January to the end of September 2022, compared to profits amounting to 3.75 billion pounds in the comparative period of 2021, taking into account minority rights.
The share of the holding company’s shareholders in the profits of the nine months amounted to about 3.68 billion pounds, compared to 2.48 billion pounds during the same period of 2021.
While non-controlling interests recorded about 2.02 billion pounds in profits at the end of September 2022, compared to 1.27 billion pounds during the same period last year.
The company’s sales rose during the nine months to 60.64 billion pounds, compared to sales of 49.05 billion pounds in the comparative period of last year.
At the level of unconsolidated businesses, the profits of the independent company rose to 1.03 billion pounds from the beginning of January until the end of last September, compared to profits amounting to 236.23 million pounds in the comparative period of 2021.
And a statement of the company reviewed the issuance of two influential economic decisions after the date of the financial statements, namely:
– The Central Bank’s decision last October to apply a flexible exchange rate system permanently, leaving the forces of supply and demand to determine the value of the pound against other foreign currencies, which led to a 16% drop in the value of the pound against the dollar in commercial banks on the same day, followed by a further decline in currency value.
The price of the dollar against the pound reached 24.55 pounds, an increase of about 25.6% from the conversion price before the decision, which will affect the financial position for the fourth quarter of 2022, according to the company.
– On November 19, 2022, the Prime Minister’s decision was issued to cancel the interest rate initiative that has been in effect since March 2020 to support the industry at 8%, and accordingly, companies will now pay the corridor rate decided by the Central Bank (the prevailing lending rate is 14.25%) in addition to an interest margin to be agreed upon with lending commercial banks.
The statement indicated that the currency losses amounted to 1.43 billion pounds in the first nine months of the year 2022, most of which came in the first quarter of 2022 due to the drop in the exchange rate by about 17% in pounds against the dollar in March 2022, and the rest as a result of another 5% drop in the dollar. Third quarter of 2022.
The company also incurred additional currency losses after the balance sheet date (September 30), as a result of the Central Bank’s decision to implement a flexible exchange rate policy on October 27.
It is noteworthy that Ezz Steel achieved profits amounting to 4.12 billion pounds during the period from January to the end of last June, compared to profits of 2.39 billion pounds in the first half of 2021, taking into account minority rights.
The share of the holding company’s shareholders in the half-term profits amounted to about 2.6 billion pounds, compared to 1.58 billion pounds during the same period of 2021.
While the share of non-controlling interests in profits during the period amounted to about 1.52 billion pounds at the end of June 2022, compared to 813.7 million pounds during the comparative period of 2021.
The company’s sales rose during the first six months of this year to 38.49 billion pounds, compared to 30.41 billion pounds in the first half of last year.
On the level of unconsolidated business, the profits of the independent company jumped to 806.45 million pounds during the first half of this year, compared to profits amounting to 156.23 million pounds in the first half of 2021.