Misr Cement Co. (Qena), listed on the Egyptian Stock Exchange EGX as MCQE, witnessed an increase in its net profits in the third quarter of 2020 to reach EGP 39.20 million, up from EGP 29.70 million in the same quarter of 2019; with an increase of 31.79 percent, despite the decline in net revenues in the third quarter of 2020. The company recorded about EGP 1.8 million, down from EGP 2.2 million for the same quarter in 2019, according to a statement released on Monday.
The company’s financial results for the third quarter of 2020 showed that its net sales revenues decreased to EGP 826 million, down from EGP 979 million in the previous year. Moreover, the cost of sales per ton decreased by 15 percent to reach EGP 506 per ton at the end of the third quarter of 2020, compared to EGP 584 per ton for the same period in 2019; in addition to the fall of general and administrative expenses that dropped by 12 percent to record EGP 45 million at the end of the third quarter of 2020, down from EGP 51 million for the same period in 2019.
Furthermore, financing expenses declined by 45 percent from 2019 to record EGP 48 million in the third quarter of 2020, down from EGP 86 million for the same period in 2019.
On the other hand, the company’s return on investments recorded a notable increase at the end of the third quarter of 2020, reaching EGP 12 million, up from EGP 7 million in the same period in 2019; which resulted in increasing the consolidated net profit of the company to EGP 45 million at the end of the third quarter of 2020, up from EGP 21 million for the same period last year.
Abdel-Fattah Harhour, Chairman of the Board of Directors of Misr Cement Co. (Qena), said that the company has succeeded in overcoming all the challenges that afflicted the cement sector in Egypt due to the spread of the novel Coronavirus and the decline in demand at both the national and international levels.
He noted that the company stood alone from its rivals in the Egyptian market by achieving more remarkable successes in the third quarter of 2020; as the group’s consolidated net profits rose to EGP 39.20 million, recording an increase of 31.7 percent over the same period in 2019. Adding that despite the decrease in the consolidated net revenues by 21.9 percent, compared to the same period last year, Misr Cement Co. (Qena) achieved standalone net profits of EGP 45.1 million.
“In light of the current market conditions, which are witnessing a surplus in production faced by a contraction in consumption and a decrease in prices, Misr Cement Co. (Qena) has maintained exceptional performance that has contributed to its steadfastness in front of obstacles. The company was able to achieve a growth in net profits during the third quarter of 2020, by reducing operating costs while continuing to improve performance to achieve maximum effectiveness,” said Tarek Talaat, Managing Director of Misr Cement Co. (Qena).
Misr Cement Co. (Qena) was established in 1997 with a capital of EGP 720 million and a production capacity of 2 million ton per year to produce cement of all kinds.
The company owns a 60 percent stake in Minya Portland Cement, whose design capacity is estimated at 2 million tons annually. The company also owns a controlling share in ACICO Ready Mix Concrete by 100 percent, in order to produce 500 thousand cubic meters of ready-mixed concrete through 9 concrete plants.