Qalaa closed out the year with strong top-line growth, as revenue expanded by 53% y-o-y to EGP 148.9bln in FY24

Zawya

07-07-2025

Additionally, ERC successfully finalized its debt restructuring as of 20 December 2024, while Qalaa is expecting to complete the capitalization of the QHRI debt by the end of 3Q25
Qalaa's consolidated revenue reached EGP 148.9 billion in FY24, a 53% y-o-y increase driven by solid performances across all subsidiaries. Excluding ERC, consolidated revenue rose by 47% y-o-y to EGP 13.9 billion during the year. In parallel, recurring EBITDA shrank by 6% y-o-y to EGP 21.4 billion in FY24, largely due to the decline in EBITDA reported at ERC driven by the drop in refining margins. Meanwhile, the Group's consolidated bottom-line closed out the year at EGP 6.4 billion.
ERC continued to operate above its rated capacity, yet refining margins remain pressured due to the cyclical nature of the business. On that front, ERC's USD-denominated revenue expanded strongly year-on-year mainly driven by the devaluation of the EGP against the USD.
ERC's receivables from EGPC stood at USD 35.0 million as of 04 June 2025, and the company has successfully finalized its senior and subordinated debt restructuring as of 20 December 2024.
On that front, the company paid a total of USD 233.6 million to senior lenders in December 2024, as well as a total payment of USD 157.5 million in June 2025. As such, the company remains on track to fully settle its senior debt ahead of schedule.
Following the completion of this restructuring at the end of 4Q2024, as well as the repayments in December and June, ERC's current net senior debt amounts to USD 228.0 million.
The company also paid a total of USD 59.1 million in fees and default interest related to the debt restructuring process.
Qalaa's remaining portfolio companies continued to demonstrate their strength and resilience across the board, with all business segments reporting revenue growth during the year. Additionally, all portfolio companies apart from ASCOM recorded a net profit during the year.
The continued recovery of Al-Takamol Cement's performance, which ended the year with solid year-on-year growth, supported the performance of the Group's cement segment during FY24. ASEC's results were further supported by broad-based growth across the rest of its subsidiaries during the year.
Dina Farms Holding continued to deliver solid results across the board following improved operations across all business segments at Dina Farms, as well as the recovery of gross margins at ICDP.
ASCOM's strong top-line results came largely on the back of the solid performances of ASCOM's two largest USD-denominated revenue generators, ACCM and GlassRock, in EGP terms, and was further augmented by the EGP devaluation. Worth noting that the Group's position as an import substitute and export player across the mining business continued to strengthen Qalaa's consolidated results.
CCTO's transportation and logistics business delivered strong top-and bottom-line results, largely driven by the coal storage and stevedoring services at NRPMC, coupled with solid results at the USD-denominated Nile Barges.
TAQA Arabia delivered a strong top- and bottom-line performance on the back of solid results across the board, particularly at TAQA Power and TAQA Gas.
The Group continues to focus on growing its exports and leveraging the cost advantage available to local manufacturers, with Group export proceeds reaching c.USD 20.8 million in 4Q24. Meanwhile, local foreign currency revenue recorded c.USD 693.8 million during the quarter. As for FY24, Group export proceeds stood at USD 68.4 million, while local foreign currency revenue closed the year at USD 3.1 billion.
Qalaa continues to work towards finalizing the process that enables the capitalization of QHRI's debt with an Extraordinary General Meeting (EGM) to approve the capital increase scheduled on 17 July 2025. The process is expected to be completed by the end of 3Q25.
Qalaa's strategy will continue to focus on the following elements:
Qalaa will continue driving growth through small incremental investments in its subsidiaries, expanding cashflows, and thereby reducing its debt to cashflow ratios. Management is confident this strategy will continue to deliver the desired results.
Qalaa is currently studying several new medium-sized, export-oriented, and predominantly green investments with high local value-added components, to be executed through its subsidiaries.
Qalaa's focus remains on growing its exports and leveraging the cost advantage of local manufacturers.
Qalaa continues to prioritize the reduction of its consolidated debt, with a targeted decrease of approximately EGP 30 billion expected in FY25 alone. This includes the repayment of USD 300 million in ERC senior debt and USD 240 million in debt owed to QHRI.
Cairo: Qalaa Holdings, a leader in energy and infrastructure (CCAP.CA on the Egyptian Exchange), released today its consolidated financial results for the three- and twelve-month periods ending 31 December 2024. During the year, Qalaa achieved a revenue of EGP 148.9 billion, a 53% y-o-y increase, mainly driven by ERC's USD-denominated revenue, and further supported by broad-based growth across the Group's subsidiaries. On the profitability front, the Group's EBITDA reached EGP 21.4 billion in FY24, down 6% y-o-y following the decline in EBITDA witnessed at ERC. Similarly, the Group's consolidated bottom-line contracted by 2% y-o-y, closing out the year at EGP 6.4 billion.
In 4Q24, ERC's USD denominated revenue grew by 32% y-o-y in EGP terms to EGP 31.7 billion, largely driven by the depreciation of the EGP against the USD. With regards to FY24, USD denominated revenue expanded by 54% y-o-y to EGP 134.9 billion.
Excluding ERC, Qalaa's EBITDA expanded by 52% y-o-y to EGP 699.1 million in 4Q24, driven by solid growth across most subsidiaries. Meanwhile, Qalaa's FY24 EBITDA excluding ERC reached EGP 2.9 billion, a 46% y-o-y increase. ASEC Holdings' EBITDA during the quarter stood at EGP 384.2 million, a 475% y-o-y expansion driven by broad-based growth across the company's subsidiaries. On a full-year basis, EBITDA rose by 52% y-o-y to EGP 1.1 billion in FY24.
In 4Q24, Dina Farms Holding Company's EBITDA rose by 46% y-o-y to EGP 185.5 million, following improved margins across the board. With regards to FY24, EBITDA grew by 124% y-o-y to EGP 900.0 million. ASCOM achieved an EBITDA of EGP 65.4 million in 4Q24, a 36% y-o-y decline following the drop in operating profitability reported at ACCM, GlassRock, and ASCOM Mining. In FY24, ASCOM's EBITDA expanded by 23% y-o-y to EGP 489.5 million.
EBITDA at CCTO's transportation and logistics business expanded by 58% y-o-y to EGP 160.7 million in 4Q24, largely driven by the solid operating results at NRPMC, coupled with the expansion in Nile Barge's USD-denominated EBITDA. The company's FY24 EBITDA grew by 63% y-o-y to EGP 493.5 million following similar drivers. Finally, TAQA Arabia's EBITDA expanded by 48% y-o-y to EGP 706.7 million in 4Q24. EBITDA growth during the quarter came largely on the back of strong broad-based growth across TAQA's subsidiaries. On a full-year basis, TAQA Arabia's EBITDA grew by 35% y-o-y to EGP 2.0 billion. TAQA Arabia is accounted for as an investment in associate using the equity method and revenues are not included in Qalaa's consolidated revenues.
Qalaa achieved a consolidated net profit after minority interest of EGP 420.7 million in 4Q24, a 91% y-o-y decline. The year-on-year drop in net income during the quarter was largely due to the recording of a one-off gain associated with the divestment of the shares of TAQA Arabia in 4Q23. On a full year basis, net profit after minority interest shrank slightly by 2% y-o-y to EGP 6.4 billion. All of Qalaa's subsidiaries, apart from ERC, ASCOM, and Dina Farms Holding Company, recorded net profits during the quarter. As for FY24, all of Qalaa's subsidiaries apart from ASCOM achieved a net profit.
ERC reported a net loss of EGP 1.0 billion in 4Q24, compared to a net profit of 641.3 million in 4Q23, largely as a result of an increase in feedstock prices, a drop in the prices of refined products, and a decline in the quality of feedstock. On a twelve-month basis, net profit fell by 63% y-o-y, FY24 at EGP 1.8 billion. In 4Q24, ASEC Holdings reported a net profit of EGP 2.3 billion in 4Q24, compared to a net loss of EGP 1.1 billion recorded during 4Q23, following enhanced profitability across the company's subsidiaries. In parallel, the company's net profit for FY24 stood at EGP 1.5 billion, versus a net loss of EGP 1.8 billion reported in FY23, on the back of similar drivers, as well as a one-off provision reversal.
Dina Farms Holding Company. achieved a net loss of EGP 44.2 million in 4Q24, compared to the net loss of EGP 1.0 million reported in 4Q23, mainly as a consequence of an increase in both depreciation and interest expenses, as well as forex-related losses, at Dina Farms. With regards to FY24, net income expanded by 367% y-o-y to EGP 247.2 million, driven by improved profitability across the board. In 4Q24, ASCOM's net loss expanded by 35% y-o-y to EGP 404.2 million, largely due to the decline in profitability at ASCOM Mining. Similarly, ASCOM achieved a net loss of EGP 338.9 million in FY24,mainly resulting from a one-off impairment of EGP 320.5 million, versus a net profit of EGP 2.0 billion reported during FY23, mainly resulting from a one-off sale of an affiliate.
At CCTO's transportation and logistics business, net income closed the quarter at EGP 84.8 million, rising by 97% y-o-y. Meanwhile on a full-year basis, net income grew by 31% y-o-y to EGP 149.2 million. Enhanced bottom-line profitability during the quarter and full-year was largely driven by the solid recurring operating results at NRPMC, coupled with the expansion in Nile Barge's USD-denominated net income. Finally, TAQA Arabia's net profit expanded by 44% y-o-y to EGP 277.2 million in 4Q24, driven by strong performances at both TAQA Gas and TAQA Power. With regards to FY24, net profit increased by 26% y-o-y to EGP 702.0 million following similar drivers to the quarterly performance.
'Qalaa closed out the year strongly, reporting solid top-line expansion in FY24. Our performance throughout the past year underscores the Group's strength and resilience, as well as its ability to navigate challenging macroeconomic conditions,' said Qalaa Holdings Chairman and Founder Ahmed Heikal. On that front, Qalaa's revenue expanded by 53% y-o-y in FY24. Top-line growth during the year came primarily on the back of increased EGP equivalent of the USD-denominated revenue at the Egyptian Refining Company, and further boosted by comprehensive growth across the rest of our subsidiaries. Our revenue growth during the year is a testament to the success of our meticulous growth-oriented strategies. As we head further into 2025, we will continue to build on the strong top-line performance to deliver sustainable, broad-based growth.'
'On the profitability front, Qalaa's EBITDA shrank by 6% y-o-y to EGP 21.4 billion in FY24, mainly as a consequence of the decline in refining margins at ERC. However, it is worth highlighting that excluding ERC, the Group's EBITDA expanded by 46% y-o-y, with all subsidiaries delivering solid year-on-year growth. Similarly, in FY24 the Group's consolidated net income contracted slightly by 2% y-o-y, largely due to the decline in ERC's refining margins, whereas net income excluding ERC inched upwards by 4% y-o-y, with the majority of subsidiaries reporting bottom-line growth during the year,' Heikal continued.
On a separate note, I am pleased to announce that our debt settlement and restructuring efforts are progressing well. With regards to the QHRI debt purchase agreement, on 04 June 2025 Qalaa's Ordinary General Assembly convened and approved extending the deadline for completing the procedures of the Group's capital increase to 15 September 2025. Additionally, Qalaa's Extraordinary General Assembly is scheduled to convene on 17 July to discuss the approval of the proposed capital increase and the capitalization of dues owed to QHRI and CCP. Following the approval of this resolution, the process of allocating shares to each participant in the Debt Purchase should be initiated. The approval of the capital increase is expected to significantly de-risk Qalaa's financial position, as it will transform around USD 240 million of debt into equity, in alignment with the company's broader strategic objectives of streamlining its capital structure and enhancing shareholder value,' Heikal said.
'Moving forward, we will continue pushing ahead with our growth strategies across our diverse platforms over the coming months. I am confident that the Group's outlook remains bright despite the challenging market conditions, and we will continue pushing forward with our strategy of undertaking small, incremental investments with the aim of continuously enhancing Qalaa's investments portfolio,' Heikal added.
'Finally, I would like to reiterate that the true value of Qalaa's performing assets is masked due to holding them at their historical cost and, in some cases, adjusting for impairments, while not taking into consideration any revaluation adjustments,' Heikal concluded.
'I am proud of Qalaa's impressive results over the past year,' said Hisham El-Khazindar, Qalaa Holdings Co-Founder and Managing Director. 'Throughout the past twelve months, our results continued to be heavily driven by ERC's USD-denominated revenue, which expanded strongly year-on-year despite the decline in refining margins witnessed during the period. Elsewhere across our portfolio, our agriculture and logistics segments continued to deliver solid top- and bottom-line results, largely driven by their robust investment fundamentals. In parallel, the continued recovery of Al-Takamol Cement's performance, which witnessed solid year-on-year growth during the twelve-month period, supported the performance of the Group's cement segment. Finally, Qalaa's position as an import substitute and export player across our mining business continued to strengthen the Group's consolidated results, generating valuable USD proceeds during a period of significant exchange rate fluctuations.'
'On the debt settlement front, I am pleased to announce that as of 20 December 2024, ERC has successfully finalized its senior and subordinated debt restructuring, and the company has recently completed a repayment of USD 157.5 million in June 2025. On that front, ERC's current net senior debt amounts to USD 228.0 million, and the company remains on track to settle its senior debt ahead of schedule. We remain completely committed to reducing Qalaa's risk levels and maintaining a healthy financial position going forward,' added El-Khazindar.
'Our performance to close out the year is a reflection of our ability to push ahead during difficult times, and I am looking forward to another year of growth and strong results across our operations and markets,' concluded El-Khazindar.