1. Homepage
  2. Equities
  3. Egypt
  4. Egyptian Exchange
  5. Qalaa Holdings S.A.E.
  6. News
  7. Summary
    CCAP   EGS73541C012

QALAA HOLDINGS S.A.E.

(CCAP)
  Report
End-of-day quote Egyptian Exchange  -  2022-08-16
1.219 EGP   +2.78%
07/04QALAA E : 1Q2022 Investor Presentation
PU
07/04QALAA HOLDINGS S.A.E. : 1st quarter report
CO
06/30QALAA E : Holdings 1Q22 Business Review - Consolidated Results
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Qalaa E : QH Business Review for the year ended 31 December 2021

06/26/2022 | 03:46am EDT

FY 2021 BUSINESS REVIEW

CAIRO, EGYPT: 29 April 2022

Qalaa Holdings Reports FY 2021 Results

  • Qalaa's consolidated revenues increased 27% year-on-year and recurring EBITDA grew 178% year-on- year in FY21, supported by strong performance across almost all subsidiaries and improved refining margins at ERC;
  • ERC was a key driver behind consolidated revenue growth, contributing c.62% to Qalaa's total revenues of EGP 45,826.1 million in FY21;
  • Excluding ERC, Qalaa's revenues grew by 20% year-on-year and recurring EBITDA increased by 13% year- on-year in FY21 driven by positive performances across Qalaa's subsidiaries;
  • TAQA Arabia's growing revenues were driven by CNG station expansions at TAQA Gas as well as increasing distribution and generation volumes at TAQA Power in FY21;
  • National Printing saw improved export volumes and capitalized on higher prices at Uniboard. El Baddar state-of-the-art facility delivered substantial volume growth despite not operating at full capacity yet;
  • ASEC Holding's solid top line results reflect strong performance in the production segment, which account for 74% of the company's revenue. Al-Takamol delivered higher production volumes despite a challenging operating environment in Sudan and Zahana Cement increased its total clinker output;
  • Dina Farms Holdings delivered a strong performance on the back of enhanced operations at Dina Farms and improved post-Covid-19 market conditions. ICDP's volumes also increased due to the new direct distribution strategy;
  • A key focus over the next period will be to grow Group-wide exports to benefit from the commodity cycle and leverage the advantage available to local manufacturers as global logistic costs, especially from China, continue to rise;
  • The Group's export proceeds recorded c.USD 94.9 million in FY21, while local foreign currency revenue recorded c. USD 1,866.5 million for the year;
  • Debt restructuring at Qalaa Holdings is nearing an agreed term sheet. In addition, debt restructuring at ERC remains a top priority;
  • Despite ongoing challenges, management is confident in the fundamentals of the Egyptian economy and its ability to capitalize on shifting global macroeconomic dynamics.
  • Management remains optimistic and confident with regards to the solid foundation of its companies;
  • Net income reported a loss as a result of aggressive provisions and impairments policies;

4Q 2021 Consolidated Income Statement Highlights

Revenues

EGP 14,877.7 mn

vs. EGP 9,429.9 mn in 4Q20

EBITDA*

Net Income After Minority

EGP 2,085.9 mn

EGP (957.6) mn

EGP 509.7 (excluding ERC)

vs. EGP (992.3) mn in 4Q20

vs. EGP 253.4 mn in 4Q20

FY 2021 Consolidated Income Statement Highlights

Revenues

EGP 45,826.1 mn

vs. EGP 35,950.8 mn in FY20

QALAAHOLDINGS.COM

1

FY 2021 BUSINESS REVIEW

CAIRO, EGYPT: 29 April 2022

EBITDA*

Net Income After Minority

EGP 4,131.9 mn

EGP (2,278.4) mn

EGP 1,841.2 (excluding ERC)

vs. EGP (2,553.0) mn in FY20

vs. EGP 1,485.1 mn in FY20

Highlights from Consolidated Balance Sheet at 31 December 2021

Consolidated Assets

Consolidated Debt

EGP 84,268.4 mn

EGP 61,855.4 mn

At current book value vs. EGP 81,987.5 mn in FY20

Of which EGP 42,749.1 mn related to ERC

*Recurring EBITDA excludes one-off selling, general and administrative expenses

Qalaa Holdings, a leader in energy and infrastructure (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital), released today its consolidated financial results for the year ended 31 December 2021. The Group recorded a 27% y-o-y increase in revenues to EGP 45,826.1 million in FY21 and a 178% increase in recurring EBITDA to EGP 4,131.9 million during the year. The strong performance demonstrates Qalaa's resilience and robust growth strategies across its subsidiaries. Furthermore, improved refining margins at ERC along with a turnaround in market conditions and global surge in commodity prices, benefitted the Group's consolidated performance during the year.

To note, ERC's refining margin averaged USD 1.8 million per day in 4Q21, and it has since risen significantly and now exceeds pre-COVID-19-levels owing to the rally in oil prices driven in part by the Russo-Ukrainian war. Excluding ERC, Qalaa's revenues grew by 20% y-o-y to EGP 17,324.3 million in FY21 and recurring EBITDA increased by 13% y-o-y to EGP 1,841.2 million during the year. At Qalaa's bottom-line, the Group booked a net loss of EGP 2,278.4 million in FY21 compared to a net loss of EGP 2,553.0 million last year.

Financial and operational highlights follow, as do management's comments and overview of the performance of different business units. Full financials are now available for download at ir.qalaaholdings.com.

QALAAHOLDINGS.COM

2

FY 2021 BUSINESS REVIEW

CAIRO, EGYPT: 29 April 2022

Financial and Operational Highlights

QALAA HOLDINGS

CONSOLIDATED REVENUES FY21

82%

EGP 45,826.1 mn

2%

1%

2% 6%

7%

n Energy

n Agrifoods

n Cement

n T&L

n Packaging &

n Other

Printing

  • Mining

REVENUE PROGRESSION

(EGP mn)

7.14,877

1.45,826

9.9,429

8.35,950

4Q20

4Q21

FY20

FY21

RECURRING EBITDA

PROGRESSION

(EGP mn)

9.4,131

4.253

9.2,085

1.1,485

4Q20

4Q21

FY20

FY21

QALAAHOLDINGS.COM

  • Qalaa's consolidated revenues grew by 27% y-o-y to EGP 45,826.1 million in FY21, primarily driven by ERC's contribution.
    ERC's revenues grew by 32% y-o-y to EGP 28,501.8 million in FY21, constituting 62% of Qalaa Holdings' top line for the year. The performance was driven by a recovery in refined petroleum product prices.
  • Excluding ERC, Qalaa's revenues grew by 20% y-o-y to EGP 17,324.3 million in FY21, primarily driven by improved performances at TAQA Arabia and National Printing.
    TAQA Arabia's revenue grew 15% y-o-y during the year to EGP 9,102.0 million, reflecting improved market conditions. The year saw higher power distribution volumes by TAQA Power, CNG station expansions at TAQA Gas as well as increased fuel and lubes revenues at TAQA Marketing.
    National Printing delivered a 46% y-o-y top line increase in FY21 as it reaped the rewards of its new El Baddar state-of-the-art facility. Additionally, improved export volumes and an optimized pricing strategy at Uniboard reflected positively on National Printing's results during the year.
    Meanwhile, Dina Farms' revenues reached EGP 835.0 million in FY21, up 17% y-o-y, as facility enhancement projects continued to yield improved operations across its segments. Finally, ASCOM delivered 14% y-o-ytop-line growth in FY21 supported by rising prices and increased export volumes at ACCM.
  • Qalaa's recurring EBTIDA increased 178% to EGP 4,131.9 million in FY21, compared to EGP 1,485.1 million in FY20 on the back of improved refining margins and zero shutdown days reflecting positively on ERC's performance during the year.
    It is worth noting that ERC's gross refining margin increased substantially in recent months following the Russo-Ukrainian war and exceeded pre-COVID-19 levels.

Consolidated Recurring EBITDA Progression Chart* (EGP mn)

Consolidated EBITDA

Consolidated EBITDA ex- ERC

2,086

1,205

762

750

329

290

303

328

367

320

626

357

329

290

303

328

320

360

214

303

90

454

521

510

1Q19 2Q19 Q319 Q419 1Q20 2Q20 3Q20 Q420 1Q21 2Q21 3Q21 4Q21

*ERC started operation in 1Q20

3

RECURRING EBITDA

PROGRESSION (Excluding ERC) (EGP mn)

2.1,841

2.626

7.509

5.1,626

4Q20

4Q21

FY20

FY21

NET PROFIT PROGRESSION

(EGP mn)

3).(992

6).(957

0).(2,553

4).(2,278

4Q20

4Q21

FY20

FY21

FY 2021 BUSINESS REVIEW

CAIRO, EGYPT: 29 April 2022

Excluding ERC, Qalaa recorded a recurring EBITDA increase of 13% y-o-y to EGP 1,841.2 million in FY21, driven by improved profitability across all the Group's subsidiaries with the exception of ASEC Holding.

Qalaa's EBITDA excluding ERC was primarily driven by improved profitability at TAQA Arabia, which benefitted from the CNG station expansions and the new industrial connections at TAQA Gas, as well as an increase in household and industrial clients at TAQA Power in FY21. EBITDA performance was also supported by strong results at ASCOM, driven by higher export volumes and an increase in the average price per ton.

  • Selling, general and administrative expenses (SG&A) recorded EGP 494.1 million in 4Q21, down 21% y-o-y. The figure includes EGP 126.6 million related to ERC, with the decline primarily driven by a reclassification of expenses. In FY21, SG&A recorded EGP 1,911.9 million in FY21, up 9% y-o-y, of which EGP 553.5 million are related to ERC.
  • Depreciation and amortization expenses stood at EGP 1,139.2 million in 4Q21 compared to EGP 1,498.0 million in 4Q20. On a full-year basis, depreciation and amortization expenses stood at EGP 4,419.2 million in FY21, up 4% y-o-y compared to EGP 4,240.0 million in FY20.
  • Bank interest expense recorded EGP 3,699.4 million in FY21, almost at par with the EGP 3,646.3 million recorded in FY20.
  • Qalaa recorded an FX gain of EGP 228.6 million in FY21 compared to EGP 50.9 million in FY20, of which EGP 206.3 million was attributed to ASEC Cement.
  • Qalaa recorded impairments of EGP 281.7 million in 4Q21 compared to EGP 111.1 million in the same quarter last year. In FY21, total impairments and write downs reached EGP 308.4 million compared to EGP 230.9 million in FY20. The increase is primarily due to inventory and debtors' impairments at ASEC Engineering.
  • Qalaa recorded provisions of EGP 1,440.6 million in FY21, most of which was recorded at the cement platform. Unpaid interest on restructured loans accounted for EGP 219.3 million, while the remaining amount was attributed to contract termination obligations, taxes and social insurance.
  • Qalaa Holdings recorded a consolidated net loss after minority interest of EGP 2,278.4 million in FY21 compared to a net loss of EGP 2,553.0 million in FY20, down nearly 11%.
    Bottom line losses narrowed due to ERC's improved performance and refining margins, which exceeded pre-COVID-19 levels. Moreover, the Group's subsidiaries collectively benefitted from improved market conditions.
  • Qalaa's debt restructuring efforts at the holding level and at the few remaining subsidiaries are progressing and remain a top priority for the Group. Additionally, ERC's negotiations with its lenders for a full debt restructuring are underway.

QALAAHOLDINGS.COM

4

FY 2021 BUSINESS REVIEW

CAIRO, EGYPT: 29 April 2022

  • Qalaa's consolidated debt, excluding ERC and ERC-related debt, stood at EGP 16.1 billion as of 31 December 2021 compared to EGP 11.8 billion as of 31 December 2020. The increase was mainly driven by expansions at TAQA Arabia.

Debt Progression (EGP bn)

EGP Billion

45.00

42.75

40.00

November 2016: EGP floatation

35.00

30.00

25.00

20.00

16.11

15.00

10.00

5.00

3.39

0.00

Mar'2014 Jun'2014 Sep'2014

Dec'2014 Mar'2015 Jun'2015 Sep'2015

Dec'2015 Mar'2016 Jun'2016 Sep'2016 Dec'2016

Mar'2017 Jun'2017 Sep'2017

Dec'2017 Mar'2018 Jun'2018 Sep'2019 Dec'2019

Mar'2019 Jun'2019 Sep'2019 Dec'2019 Mar'2020

Jun'2020 Sep'2020

Dec'2020 Mar'2021 Jun'2021 Sep'2021 Dec'2021

2014

2015

2016

2017

2018

2019

2020

2021

All Others

ERC

QH SPVs related to financing ERC Shares

QALAAHOLDINGS.COM

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Qalaa Holdings SAE published this content on 26 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 June 2022 07:45:01 UTC.


© Publicnow 2022
All news about QALAA HOLDINGS S.A.E.
07/04QALAA E : 1Q2022 Investor Presentation
PU
07/04QALAA HOLDINGS S.A.E. : 1st quarter report
CO
06/30QALAA E : Holdings 1Q22 Business Review - Consolidated Results
PU
06/30QALAA E : Holdings carried over the positive momentum from 2021 into the new year showcasi..
PU
06/26QALAA E : Minutes of Ordinary General Meeting - 26 June 2022 (Arabic)
PU
06/26QALAA E : QH Business Review for the year ended 31 December 2021
PU
06/20QALAA E : Statement of Clarification Regarding the Ruling Against Qalaa Holdings Represent..
PU
05/19QALAA HOLDINGS S.A.E. : Press Release
CO
05/18QALAA HOLDINGS S.A.E. : Annual Report
CO
05/15Qalaa Holdings Seeks Acquisitions
CI
More news
Financials
Sales 2021 45 826 M 2 396 M 2 396 M
Net income 2021 -2 278 M -119 M -119 M
Net Debt 2021 63 857 M 3 338 M 3 338 M
P/E ratio 2021 -0,96x
Yield 2021 -
Capitalization 3 738 M 195 M 195 M
EV / Sales 2020 1,79x
EV / Sales 2021 1,47x
Nbr of Employees 32 000
Free-Float 61,6%
Chart QALAA HOLDINGS S.A.E.
Duration : Period :
Qalaa Holdings S.A.E. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends QALAA HOLDINGS S.A.E.
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 2
Last Close Price 1,22 EGP
Average target price 1,64 EGP
Spread / Average Target 34,1%
EPS Revisions
Managers and Directors
Hisham Hussein El-Khazindar Managing Director & Director
Moataz Farouk Mohammed Ayad Chief Financial Officer & Executive Director
Ahmed Mohammad Hassanein Heikal Chairman
Ramy Barsoum Head-Information Technology
Ahmed Abd El-Sattar Group Chief Information & Innovation Officer
Sector and Competitors
1st jan.Capi. (M$)
QALAA HOLDINGS S.A.E.1.08%193
BLACKROCK, INC.-18.82%114 142
UBS GROUP AG-2.10%55 093
BANK OF NEW YORK MELLON CORPORATION (THE)-22.85%36 389
APOLLO GLOBAL MANAGEMENT, INC.-15.93%34 679
AMERIPRISE FINANCIAL, INC.-4.48%31 266