Egypt Kuwait Holding achieves $179 million net profit

Egypt Kuwait Holding closed FY2023 with revenues of USD 801 million, surpassing pre-Ukraine war historical averages. Profitability remained robust in FY23, with gross profit reaching USD 358 million and a 45% margin, well above historical averages. EBITDA recorded USD 359 million, implying an EBITDA margin of 45%, EKH closed the year with a net profit margin returning to normalised levels at 27%. Attributable net income for the year amounted to at USD 179 million.

On a quarterly basis, EKH reported revenues of 213 million, marking a 6% increase over the previous quarter. This growth was propelled by a 26% increase in NatEnergy’s revenues, translated into USD, and an improvement in urea prices at AlexFert compared to the lows observed in 1H23.

Profitability remained resilient, ending the quarter with a 43% gross profit margin. EBITDA for the quarter reached 95 million in 4Q23, reflecting an EBITDA margin of 45%, aligning with historical averages. EKH’s net income for the quarter demonstrated resilience, standing at 50 million in 4Q23, with a net income margin of 23%, consistent with the 24% recorded in 3Q23. Attributable net income for 4Q23 totaled USD 43 million in 4Q23, exhibiting an 18% increase quarter-on-quarter from the USD 36 million reported in 3Q23.

Commenting on the Group’s performance, EKH Chairman Loay Jassim Al-Kharafi said: “In the face of formidable global challenges, I am pleased to announce that EKH has demonstrated remarkable resilience and strong performance throughout 2023. This success is further bolstered by solid profitability metrics, including a strong gross profit margin and EBITDA, which have contributed to impressive revenues for the year. Additionally, this achievement has led to an increased attributable net income for our shareholders.”

"As we reflect on our accomplishments in 2023, I wish to express sincere gratitude to Sherif El Zayat, our outgoing CEO, who has been an integral part of our success over the years. We wish him the best of luck in his future endeavors. I also wish to welcome Jon Rokk as our new CEO, who was meticulously selected for his distinguished leadership roles in various multinational companies across Europe, the Middle East, and North Africa. With expertise spanning multiple sectors, including oil & gas, petrochemicals, infrastructure, and nuclear power, Jon aligns seamlessly with the diverse business areas of EKH and our ambitions for expansion and growth. Under his leadership, we are confident that EKH will continue to thrive and reach new heights", he added.