Qalaa Holding (formerly known as Citadel Capital) reported Saturday its capital increased to EGP 8bn marking its transformation into an investment holding company with a focus on infrastructure and industry. "Most of our highest-profile companies made very good progress in the first quarter and we expect similarly strong performances in the second quarter," said Qalaa Chairman and Founder Ahmed Heikal. Qalaa Holdings reported its first consolidated financials to reflect the impact of its acquisition of majority stakes in most of its subsidiaries. These are in the core industries of energy, cement, agrifoods, transportation & logistics and mining. In its 2014 first quarter report, Qalaa Holdings reported a 14% increase in its year-on-year revenues to EGP 1.3bn up from LE1.2bn in the same quarter the previous year. Gross profit surged 46% to EGP 238.1m while its earnings before interest, taxes, depreciation, and amortisation (EBIDTA) was a positive EGP 29m. The new figures are a contrast to a negative EGP 125.9m in the same quarter of the previous year. Net losses widened 7% year-on-year to EGP 231.9m on the back of increased charges related to discontinue operations at portfolio companies including ESACO, El-Aguizy, Elmisrieen, Enjoy and Mom's Foods. Management believes it possible that these charges could be recovered at least partially upon the exit of the companies in question. Heikal stressed that Qalaa Holdings will continue to maintain a sharp focus on driving operational improvements across their investments, divesting non-core holdings, and investing in governance systems at the company and portfolio levels.
