Qalaa Holdings revenues climb by 16% y-o-y to record EGP 11.1 billion for 9M19

Qalaa Holdings revenues climb by 16% y-o-y to record EGP 11.1 billion for 9M19; 21% y-o-y increase in revenues to EGP 3.9 billion in 3Q19; flagship ERC fully operational selling 1.3 MT of products as of Nov. 2019 with profit consolidated starting 2020; EBITDA stands at EGP 278.4 million in 3Q19 reflecting several operational milestones achieved in during the quarter:

  • Broad-based profitable business expansion at TAQA Arabia, with EBITDA up 79% y-o-y in 3Q19;
  • Al Takamol Cement in Sudan sees strong recovery with near-tripling of revenues in 3Q19 following disruptions earlier in 2019;
  • Gozour, Qalaa’s multi-category agriculture and consumer foods platform, revenue grows 15% y-o-y on continued solid top-line performance at Dina Farms and ICDP;
  • Restructuring of debt at the holding and subsidiary levels proceeding apace, expected to significantly reduce interest expenditure in the future;
  • Continued focus on growth strategy of driving operational expansion across subsidiaries.

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 quarter ended 30 September 2019, recording a 21% y-o-y expansion in revenues to EGP 3.9 billion. Top-line expansion for the period was driven by positive developments at Qalaa Holdings’ energy and cement segments, while growth at the agrifoods business provided a further boost to consolidated revenues. On a nine-month basis, Qalaa Holdings saw revenues climb by 16% y-o-y to record EGP 11.1 billion for 9M19.

Top-line growth was propelled by continued strength at the Group’s flagship energy subsidiary, TAQA Arabia, which booked y-o-y revenue growth of 30% for 3Q19. Qalaa’s revenues were further supported by a 60% y-o-y climb in the top line at ASEC Holding, where Sudan’s Al Takamol Cement recorded a near-tripling of revenues to EGP 403.6 million in 3Q19. This came as the company more than doubled volumes sold during the period coupled with a significant recovery of cement prices in Sudan and an easing of exchange rate pressures following an earlier spate of political instability and social unrest. Meanwhile at Gozour, Qalaa’s multi-category agriculture and consumer foods platform, revenue grew 15% y-o-y on continued solid top-line performance at the company’s subsidiaries, Dina Farms and ICDP.

These positive developments were slightly offset by a top-line contraction of 9% y-o-y at ASCOM, Qalaa’s operational mining platform. Meanwhile, Qalaa’s transportation and logistics segment experienced a 6% y-o-y decrease over the period. A further decline was seen at the printing and packaging segment, where revenues contracted by 21% y-o-y in 3Q19.

“I am particularly pleased to report that our flagship greenfield Egyptian Refining Company is now fully operational, having ramped up capacity utilization from 85 percent as of 30 September 2019 to its current 100% utilization rates. Since inauguration of its facility, the Company has sold approximately 1.1 MT of refined products to EGPC, in addition to 129 thousand tons of pet coke and 15 thousand tons of sulphur sold to key cement and fertilizer players as of November 2019,” said Qalaa Holdings Chairman and Founder Ahmed Heikal. “Currently ERC is making a Gross Refining Margin (GRM) of around USD 3 million per day when operating at full capacity. The plant also offers opportunities to expand production capacity with minimal incremental investments.”

“Meanwhile, Qalaa’s revenues continue to grow at a healthy pace, propelled by a broad-based expansion at our flagship energy platform, TAQA Arabia. We have made important progress in linking Egyptian households to grid-connected natural gas, and are on track to achieve management’s target of 150 thousand households by year-end. Progress has also been made in penetrating the lucrative compressed natural gas market (CNG), while TAQA’s solar power plant now generates impressive EBITDA. On the cement front, we are cautiously optimistic regarding increased political stability in Sudan, which together with the Sudanese pound’s gradual stabilization has helped drive EBITDA growth at Al Takamol during the third quarter,” Heikal added.

Qalaa’s EBITDA declined by 6% y-o-y to EGP 278.4 million in 3Q19, largely a result of the 39% y-o-y decline in EBITDA at ASEC Holding in 3Q19. This in turn was a result of weak performance at the company’s construction and management subsidiaries. At the energy segment, TAQA Arabia saw EBITDA expand at an impressive 79% y-o-y in 3Q19 on the back of a profitable expansion across the company’s business segments and a growing contribution from its recently inaugurated solar power plant in Benban, Aswan.
Qalaa Holdings booked a consolidated net loss after minority interest of EGP 395.3 million in 3Q19 versus a net profit of EGP 158.1 million one year previously.

“Heading into the new year, we look forward to a positive and operationally profitable bottom line as Qalaa consolidates profits from ERC starting 2020 and we leverage the strengths of our portfolio to generate growth across our segments,” said Heikal.

“Qalaa Holdings management continues to implement several measures that we are confident will further support the company’s return to sustainable profitability going forward,” said Hisham El-Khazindar, Qalaa Holdings’ Co-Founder and Managing Director. “We are in advanced stages of negotiations with the relevant banks to restructure the last of debt positions at the holding and subsidiary levels, notably at Nile Logistics and at ASCOM subsidiary GlassRock. These efforts follow restructuring agreements already finalized at ASEC Holding, which when completed will streamline all of Qalaa’s consolidated debt. Besides the prospect of materially decreasing outlays on interest payments over the coming period, such restructuring should lead to improved working capital availability and in turn further aiding plans for business growth. The augmented cash resources at the subsidiaries’ disposal will enable them to invest in widening their footprints while protecting from short-term contingencies.”

“Management remains confident that capital structure optimization and broader efforts to leverage the competitive strengths of Qalaa’s portfolio will deliver steady and sustainable bottom-line expansion in the quarters to come,” concluded El-Khazindar.

Qalaa Holdings’ full business review for 3Q 2019 and the financial statements on which it is based are now available for download on


Previous Qalaa Holdings press releases on this subject and others may be viewed online from your computer, tablet or mobile device at

Qalaa Holdings is an African leader in energy and infrastructure. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including Energy, Cement, Agrifoods, Transportation & Logistics, Mining and Printing & Packaging. To learn more, please visit

Forward-Looking Statements

Statements contained in this News Release that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Qalaa Holdings. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained herein constitutes “targets” or “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of Qalaa Holdings may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of Qalaa Holdings is subject to risks and uncertainties.

For more information, please contact:

Ms. Ghada Hammouda
CMO & Head of Corporate Communications
Qalaa Holdings (S.A.E.)

Tel: +20 2 2791-4439 

Fax: +20 22 791-4448
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Twitter: @qalaaholdings