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Qalaa Holdings release financial results

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World Cement,

Qalaa Holdings has released its consolidated financial results for the quarter ending 30 June 2015, reporting revenues of EGP 2086.8 million, up 33.7% compared to the same quarter last year.

On a six months basis, revenues climbed 37.8% year on year in 1H15 to EGP 4034.3 million. EBITDA meanwhile stood at EGP 565.1 million in the first half of 2015, a 169% increase over 1H14.

Revenue growth was driven by strong performance at TAQA Arabia’s fuel marketing arm, having recorded top-line year on year growth of 72% and 73% in 2Q15 and 1H15, respectively. In the cement division, ASEC Cement’s Sudan subsidiary Al-Takamol also made a strong contribution to Qalaa’s top-line growth, with the cement unit’s revenue recording 96% and 121% year on year growth in 2Q15 and 1H15, respectively. Together the energy and cement divisions contributed some 70% of total revenues in 2Q15.

On the restructuring front, the first six months of 2015 have also witnessed several developments, including ASEC Holding’s sale of its 27.5% stake in Misr Qena Cement, which resulted in a gain from sale of investment equivalent to EGP 67 million booked in 2Q15. Proceeds from the sale were utilised to fully deleverage at ASEC Cement and partially deleverage ASEC Holding, with the balance being distributed to shareholders.

The company reported a net loss after tax and minority interest of EGP 84.7 million in the second quarter of 2015, a narrowing of 55% from 2Q14 figure of EGP 188.3 million. On a six months basis, bottom-line posted a loss of EGP 196.9 million, a 53% improvement compared to 1H14 figure of EGP 420.2 million. This improvement comes despite charges of EGP 102.5 million in 1H15 related to discontinued operations. Of the EGP 102.5 million, c.EGP 44 million were booked in 2Q15 of which EGP 33 million came from MENA Homes’ Designopolis, one of several assets earmarked for sale as part of the FHI transaction. It is worthy to note that interest and depreciation due to discontinued operations are non-cash items; management accordingly estimates that c. 95% of losses from discontinued operations are non-cash.

Management reiterates its strategy for 2015 with its underlining factors being the mitigation of financial risk by significantly deleveraging at the holding and platform company levels, and limiting operational risk through the divestment of non-core and non-essential assets while focusing resources on core business and ensuring they have the funding needed to deliver on growth plans.

Edited from source by Joseph Green. Source: Qalaa Holdings

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