United Bank's institutional share offering goes live, & earnings updates from Beltone, EFG Holding, Fawry, Juhayna, and many more??

United Bank’s institutional share offering kicks off

United Bank will start selling 330 million shares, which represent a 30% ownership in the company, to institutional investors on the EGX yesterday.?

The details:

The lender will sell shares at EGP 15.6 apiece.?

313.5 million shares, which represent 95% of the total shares available, will be offered for private placement until 25 November in the initial tranche.

Retail investors will be able to snap up? the remaining 16.5 million shares in the public offering from November 27th to December 3rd.

About UB:

UB, along with its non-banking division, have an extensive network consisting of 68 branches and a workforce of 1,800 individuals, the CBE noted.?

In June 2024, the bank’s total assets increased to EGP 106 billion, up from EGP 72 billion in 2021.

UB’s profits also surged to EGP 1.742 billion by the end of December 2023, marking a notable rise from EGP 1.145 billion in December 2021.

The catalyst:

The move is in line with the International Monetary Fund’s requirement to accelerate implementation of the state privatization program. Expediting the government’s divestment program in the companies it owns and creating a “level playing field” that avoids unfair competitive practices by state-owned companies will be critical to keeping Egypt on the right track, the IMF noted.?

Beltone reports whopping 1218% profit increase in 9M

Beltone Financial recorded a 1218% YoY surge in net profits during the first nine months of the year to EGP 1.13 billion on the back of a substantial increase in revenue, coupled with enhanced operational efficiency at both its Investment Bank and NBFIs platforms.

Revenues:

The company broke its corporate record with a 405% YoY growth in operating revenue to reach EGP4.8 billion 4 driven by the expansion of its Non-Banking Financial Institutions

(NBFIs) platform and exceptional performance from its Investment Bank.

Operating revenue from its NBFI platform grew an 757% YoY to book EGP3.9 billion in 9M2024, supported by a significant expansion in its offerings and higher disbursements. As of 30 September2024, the outstanding portfolio had reached EGP18.7 billion, growing 293% year-on-year compared to 9M2023.

As for its Investment Bank, the platform’s operating revenue grew 282% YoY? to record EGP852 million in 9M2024, driven by the expansion of brokerage operations, alternative advisory solutions, and higher asset management performance fees. The investment bank’s outstanding portfolio reached EGP3.5 billion, up 465% YoY, the firm noted.

What they said:

“Achieving record net profit and crossing the EGP1 billion for the first time, is a testament to the group’s ability in delivering on its transformation strategy and to generate growth while delivering sustainable profitability. This solid financial and operational performance across all business lines is a direct result of the group’s swift and adaptable data-driven business model, its fully-fledged product offering, and its extraordinary talent, the company’s CEO noted.?

Remember, the company has been making moves:

Last month, Beltone Financial’s subsidiary “Beltone Leasing and Factoring” completed the issuance of its first securitized bond, raising some EGP 1.33? billion. The issuance was 1.5x oversubscribed; an achievement that the parent company said “is a clear testament to Beltone’s robust financial management and its ability to tap into Egypt’s evolving capital markets”.

EFG Holding almost doubles its profits in 9M 2024

EFG Holding saw its net profits after tax & minority interest almost double YoY to record EGP 3.3 billion, up 96% YoY. ?This was driven by an improvement in revenues reported by all lines of businesses of the Group, with its investment banking division contributing 61% of income during the period.

Revenues:

EFG Hermes revenues similarly nearly doubled, up 92% YoY to EGP 11.6 billion due to better capital markets activity, fx-gains, unrealized gains on investments/seed capital, and the devaluation impact on revenues generated in foreign currency.

On a Q3 basis:

The company’s net profit after tax and minority interest rose 76% YoY to reach EGP 697 million. The group’s top line expanded 68% YoY to EGP 5.0 billion on the back of higher revenues recorded by all lines of business, particularly Holding & Treasury Activities and Brokerage.

Holding & Treasury Activities revenues grew 180% Y-o-Y to EGP 781 million, mainly from unrealized gains on seed capital.

Meanwhile, fx-gains came at EGP 41 million, as the EGP weakened against the USD.

?The Group’s total assets stood at EGP189 billion at the end of September 2024

Awards during the period:

Research continued to solidify EFG’s leadership in the industry, achieving top rankings in the 2024 Emerging EMEA Extel Survey. EFG’s team was ranked #1 in the Consumer sector and the Utilities sector, #3 in Transportation, and runner-up in MENA Research, Transportation, Healthcare and Pharmaceuticals sectors.

Juhayna rakes in EGP 2.4 billion in profits in 9M2024

Juhayna Food Industries raised its net income 177% YoY in 9M 2024, bringing in EGP 2.438 billion, according to its latest earnings release. The company attributes its success to successful product launches in the dairy, juice and fermented segments.

Revenues:

The local food production giant hiked its revenues 64% YoY to EGP 18.334 billion on the back of a double-digit volume increase in the juice segment, along with exceptional performance of Juhayna’s exports.

On a Q3 basis:

The company saw its top line grow 57% YoY to EGP 6.864 billion during the third quarter of the year, and raised its net income 197% YoY to EGP 958 million. Meanwhile, the company’s net debt rose 941% YTD to EGP 1.99 billion.

Exports:

The company saw a significant rise in export revenues across Concentrates, Dairy, Fermented and Juice categories, achieving a growth rate of 308% in 3Q24 and 223% in 9M24, reaching EGP 1.082 billion and EGP 3.010 billion , respectively.

?Export sales now contribute 15.8% of the company’s total revenues for 3Q24 and 16.4% for 9M24, a significant increase from 6.0% in 3Q23 and 8.3% in 9M 2023.

Ambitious plans ahead:

Juhayna plans to inject EGP 309 million in 2024 as part of its strategy to expand into new markets in Africa in the upcoming period. Juhayna currently exports to approximately 62 countries.

Rameda reports 24% YoY leap in profits in 9M

Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) recorded a 24% YoY jump in net income in the nine months ending in September to EGP EGP 244.0 million despite challenging market conditions — including the March currency devaluation, delays in market repricing, and limited FX availability that constrained pharmaceutical production, it said in an earnings release sent to Claps.

Revenues:

?During 9M 2024, the company’s topline grew by 28.5% YoY to EGP 1.784? billion on the back of a 41.6% increase in private sales revenue, alongside an 11.3% increase in toll manufacturing sales.

Remember, the company has been making moves:

Late last month, Rameda announced plans to earmark EGP two billion toward financing new product acquisitions. The company is currently in talks to obtain 10-15 new pharmaceutical products in line with its strategy to boost exports.

In September, Rameda finalized its largest acquisition yet, purchasing a leading product for the treatment of type 2 diabetes. The product ranks first in terms of units sold with a 9% market share within the new generation oral antidiabetics market, which is valued at over EGP 6.7 billion.

Earlier that same month, Rameda announced the establishment of its new subsidiary Glow, which will specialize in the development and production of freely priced cosmetics and cosmeceuticals.

Rameda says its new subsidiary’s operations will allow it to tap into high-growth markets and generate substantial returns with minimal capex expenditure.

Going forward:

“As the year progresses, we will fully benefit from recent price adjustments, marking a turning point after a challenging period. This shift is set to drive substantial improvements in profitability, margins, and volume growth. The Company is actively exploring high-potential product launches and acquisition opportunities, particularly within chronic segments and free-pricing frameworks, along with new ventures beyond our local borders to diversify our revenue streams and bolster the resilience of our business model,” Rameda’s CEO said.

Talaat Moustafa more than triples its profits in 9M

Talaat Moustafa Group reported a 236% YoY rise in net income during the nine months ending in September to EGP 9.06 billion driven by triple-digit increases in hospitality income following the acquisition of a 51% stake in Legacy Hotels.?

Revenues:

Its revenues are up 52% YoY to EGP 27.95 billion on the back of a 190% YoY growth in its hospitality operations. Other recurring income lines (malls, sporting clubs, utilities, and contracting) as well as the development sector grew by 87% and 19% respectively.

Sales backlog:

The backlog of recorded and yet undelivered sales totaled EGP 270 billion during the period compared to EGP 123 billion in the same period of 2023. The backlog represents some 37,000 residential and non-residential units to be delivered in the next five years.

Remember:

The company raked in EGP 470 billion in sales during 2024 – a volume equivalent to the “total sales of the 9 largest real estate companies in the Egyptian market,” the company’s CEO said.

Earlier in August, TMGH said 2024 sales would drive its pre-tax profits by about EGP 45 billion over the next four to five years. It also added they would add significant foreign currency inflows to its coffers.

What’s next:

The company plans to add 1500 hotel rooms to its hotel business in Egypt, which is expected to drive the total to 5000. Its local hotel operations are expected to generate over USD 300 million in aggregate revenues, it said.?

The firm’s CEO also said TMGH is also planning to expand its operations in Iraq as part of its target to increase revenues generated overseas.

Fawry records 116.7% YoY profit hike during 9M

Fawry saw a 116.7% increase in net income to EGP 1.205 billion during the first nine months of the year, and its revenues also grew by 65.9% YoY ?to EGP 3.8 billion.

A historic Q3:

Net profit witnessed a growth of 134.8% YoY, with a 7.6% increase in the profit margin to reach 30.9%, which is the highest level recorded since the company’s foundation. This came despite major economic challenges – including high inflation rates, interest rates, and supply chain hurdles, the company’s CEO said.

He also notes that on a Q3 basis the operating profit margin before interest, taxes, depreciation and amortization reached 51.9%, the highest recording yet.

Growth drivers:

Fawry’s banking services division continued to drive growth, with earnings increasing by 101.1% YoY to reach EGP 662 million in the third quarter of 2024. The alternative digital payments sector came in second place with a nearly 37.9% YoY hike to EGP 482 million.

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