Egypt's food holding co. saw revenue rise of 334% in 2014/15: Supply ministry

Ahram Online , Thursday 3 Dec 2015

Sales of staples at public supermarkets played a role in rise of revenues

Egypt's Supplies Minister Khaled Hanafy talks at his office in Cairo, Egypt, November 29, 2015 (Reuters)

Egypt’s Food-Industries Holding Company (FIHC) saw a whopping increase of 334 percent in its fiscal year 2014/15 revenue to register LE3.4 billion (roughly $383 million), prompted by the supply ministry’s plans to develop the production and sales of the company’s 43 subsidiaries, the ministry’s spokesman said.

FIHC reached LE889 million (roughly $113.5 million) in revenues last fiscal year.

FIHC, which falls under the management of the Ministry of Supply, also recorded LE301 million (roughly $38.4 million) in profits within the fiscal year which ended last June after the ministry pumped around LE500 million over the last year to upgrade the performance of its services and production companies, Mahmoud Diab told Ahram Online by phone on Wednesday.

According to Diab, the rise in revenues is also attributed to the higher sales of public food complexes over the past months, since they started selling basic commodities to consumers at low prices to combat the price hike of staples caused partially by the dollar shortage in the domestic market.

Egypt is considering listing the state-owned FIHC in a rare initial public offering (IPO) of shares in a government holding company, the supplies minister told Reuters last February.

The IPO could raise between three and four billion Egyptian pounds ($395 million to $524 million), Minister of Supply Khaled Hanafi said. 

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