Qalaa Holdings recorded a 13% year-over-year (y-o-y) rise in revenues, of EGP 3.4bn, according to the group's consolidated financial results for the first quarter (Q1) of 2019. The top-line expansion came on the back of robust results posted across its subsidiaries, especially at the Group's energy platform with TAQA Arabia's revenues up 41% y-o-y and Tawazon's up by 59% y-o-y, according to Qalaa's Tuesday press statement. Meanwhile, ASCOM reported an 18% y-o-y increase in revenues, and Nile Logistics saw its top line expand 86% y-o-y. "We are very close to completing our portfolio restructuring strategy having sold 23 companies so far. The emphasis in the coming period will be on managing cash to achieve the dual goal of reducing risks while making small incremental investments to generate growth," said Qalaa Holdings Chairperson and Founder, Ahmed Heikal. "Growth has been dual-driven by both the streamlining of Qalaa's portfolio in addition to successful growth strategies that capitalize on favorable economic policies. We began implementing a three-year growth strategy at our energy segment in late 2018 that will see us grow our distribution reach and diversify our offerings," Heikal added. At the Agrifoods space, Heikal explained that the revenue grew at a steady 8% y-o-y with more rapid growth expected in the near-term as Qalaa Holdings roll-out several capacity enhancement initiatives, including the installation of curtains and cooling systems at the cattle milking stations. "We are also pushing forward with expansions of ASCOM's production capacity of world-class ground technical calcium carbonate, with the company's revenue and EBITDA growing by an exceptional 18% and 27%, respectively in the Q1 of 2019. At Nile Logistics, our new grain storage warehouse at Nubareya Port is complete and earmarked to launch operations during the second half (H2) of 2019," added Heikal. "EBITDA's revenues grew 3% y-o-y reaching EGP 364.4m in Q1 of 2019, weighed down by Al Takamol Sudan's results which partly offset the significant EBITDA growth reported by the Group's energy, mining, transport, and logistics platforms," according to Qalaa's press statement. Qalaa's bottom-line losses in Q1 narrowed to EGP 154.6m on the back of higher revenues and an FX gain booked at the consolidated level.
