Qalaa Holdings consolidated revenues jumped to EGP 18.7bn during the first quarter (1Q) of 2022 — an annual growth rate of 134%. However, the company incurred a net loss of EGP 584.1m, compared to a net loss of EGP 478.6m in 1Q 2021. The increase in revenues was supported by an increase in the petroleum, marketing, and distribution sectors, along with the increase in electricity distribution rates at Taqa Power, the expansion of the network of compressed natural gas stations, as well as the growth in its distribution rates. Furthermore, the revenues of the National Printing Company increased at an annual rate of 69% thanks to the operation of the new factory of Al-Badar Packaging Company, in addition to the growth in the volume of export sales and the application of a new pricing policy in Al-Shorouk and Uniboard. Meanwhile, the revenues of the ASEC Holding Group grew at an annual rate of 46%, recording about EGP 1bn thanks to the strong performance achieved by the integration cement plant in Sudan. Ahmed Heikal — Founder and Chairperson of Qalaa — said that the company has demonstrated its flexibility and ability to adapt to the transformations that occurred in the economic scene over the past year. He added that the company entered 2022 while facing continuous changes in various operating environments and responding to their requirements. Moreover, he said that 1Q of 2022 witnessed a significant increase in global inflationary pressures, with governments around the world implementing tight monetary policies, and the pricing of power changing in all economic sectors. This benefitted large companies like Qalaa. He also added that the company managed to overcome these conditions and benefit from developments by increasing the operating rates of the affiliated manufacturers, in addition to employing the competitive advantage of low manufacturing costs in increasing the volume of exports. Additionally, the Egyptian Refining Company achieved strong results, benefiting from the high prices of petroleum products and the improvement in refining profit margin amid the low supply of energy markets. Heikal explained that the administration intends to move forward with the growth of all its subsidiaries during the coming year, adding that additional investments will be pumped to these subsidiaries while preparing to implement attractive acquisitions. He also said that the administration believes that the coming period will witness a drive for private sector companies to own stakes in government-owned companies. Furthermore, Heikal stressed his confidence in the growth foundations that characterise the company and its ability to overcome the challenges resulting from the disruption of supply and supply chains. He noted that Qalaa's subsidiaries have become more ready and able to deal with this new reality. For his part, Hisham El-Khazindar — Co-Founder and Managing Director of Qalaa — said that "the improvement in Qalaa's profitability during 1Q 2022 reflects the outstanding contribution of the Egyptian Refining Company, which achieved strong results thanks to the high prices of refined petroleum products and the growth in the refining profit margin." He also stressed that the administration is still focusing on completing the restructuring of the debts of Qalaa and the Egyptian Refining Company, as it is its most important priority. El-Khazindar concluded that the company's performance is a testament to its commitment to growing its business and its ability to move forward amid various challenging operating environments, expressing his hopes for better results and outstanding performance for the subsidiaries in all the markets in which they operate.
