Qalaa Holdings, formerly Citadel Capital, has reported a gross profit of EGP238.1 million ($33.2 million) in the first quarter of 2014 (1Q14), marking a 46 per cent increase over the corresponding period in 2013.

The company accordingly reported a 14 per cent year-on-year rise in 1Q14 revenues to EGP1,366.9 million, up from pro-forma  revenues of EGP1,203.6 million in the same quarter the previous year, while EBIDTA was also a positive EGP29 million against a negative EGP125.9 million in 1Q13.

This is the company’s first full set of consolidated financials since the closing of a capital increase to EGP8 billion that marked its transformation into an investment company.

Net losses in 1Q14 widened 7 per cent year-on-year to EGP231.9 million on the back of increased charges related to discontinued operations at portfolio companies including ESACO (a company of ASEC Holdings) as well as El-Aguizy, Elmisrieen, Enjoy and Mom’s Foods (all at agrifoods company Gozour) and certain non-core companies.

“The release of our first consolidated financials post the asset purchases made possible by our share issuance is a key milestone in our transformation into an investment company,” said Qalaa Holdings chairman and founder Ahmed Heikal.

“Most of our highest-profile companies made very good progress in the first quarter and we expect similarly strong performances in the second quarter, particularly from energy division standout Taqa Arabia and cement division units ASEC Minya and MisrQena Cement.

“Heading into the second half of the year, Qalaa Holdings will continue to maintain a sharp focus on driving operational improvements across our investments, divesting non-core holdings, and investing in governance systems at the company and portfolio levels. From energy to infrastructure, the macroeconomic outlook that has long informed our investment theses is increasingly being vindicated by developments across our footprint, from Egypt to East Africa,” he added. – TradeArabia News Service