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Qalaa Holdings swings to positive EBITDA in FY14

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World Cement,

Qalaa Holdings, whose businesses include ASEC Cement, has reported its consolidated results for the year ending 31 December 2014, including a 34% rise in revenues to EGP6.5 billion and a significant leap in EBITDA at EGP651.9 million from negative EGP23.1 million in FY13. The full-year net loss of EGP879.6 million was also a 54% improvement from the previous year’s pro forma figure of EGP1.9 billion.

“Despite the headwinds we have faced, Qalaa Holdings has consistently made critical calls since 2004 as regards macro trends and business model that are now being vindicated — and made clear in our financial statements. We have always invested in infrastructure and industry, with a particular eye on energy de-regulation and demand created by Egypt’s compelling demographics. What was an investment thesis is now the core of our business strategy as a holding company as we finalise the transformation of our business model,” said Ahmed Heikal, Chairman and Founder of Qalaa Holdings.

“Most notable in this regard is that we have not just swung to the positive on the EBITDA front, but we have done so in line with our guidance of EBITDA north of EGP600 million from a negative a year ago,” Heikal said. “Notable in this respect is that our EBITDA line reflects the impact of more than EGP140 million in negative contributions from Rift Valley Railways — which is in the midst of a multi-year operational turnaround — as well as from pre-operational greenfields Egyptian Refining Company and Mashreq. The completion of the turnaround and the start of operations at greenfields will result in further significant EBIDTA improvements out of proportion to our natural EBITDA growth curve.”

In 2015, the company plans to increase its stakes in core assets through a capital increase that will see the firm capitalise liabilities arising from asset purchases worth around EGP1.7 billion.

Adapted from press release by

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