How were the companies’ business results in the third quarter of 2024?

The companies' business results were very positive and better than expected in the third quarter of the current year 2024, continuing the positive performance since the beginning of the year, as the decline in the value of the pound and the increase in the export capacity of companies greatly enhanced companies' profits in all sectors.

The current quarter witnessed an exceptional performance of companies in the real estate sector, as Talaat Moustafa Holding Group, the most prominent real estate development company in Egypt, recorded a remarkable growth in profits of 138% on an annual basis in the third quarter of the year, reaching 2.7 billion pounds. The group announced, in its statement issued by the Egyptian Stock Exchange today, that this increase in profits is mainly due to the strong performance of the hotel sector and the impact of currency differences.

The Egyptian Palm Hills Development Company recorded a significant jump in consolidated net profit during the third quarter of this year, as it rose by 124% on an annual basis to reach 2.3 billion pounds, in conjunction with an increase in activity revenues by 59% to reach 17.9 billion pounds, according to the company’s submitted disclosure. For the Egyptian Stock Exchange. On the other hand, Emaar Misr saw net profit rise by 13% in the third quarter of the year, reaching 1.7 billion pounds.

In the food sector, which is considered a defensive sector, there was a record rise in corporate profits, which led to clear positive implications for stock prices. The net profit of the Egyptian Juhayna Food Industries Company jumped by 197.2% in the third quarter of the year, reaching 958.5 million pounds.

The Egyptian Oriental Weavers Company recorded an increase in its profits by 3.1% on an annual basis during the third quarter of the current year, to reach 614.8 million pounds. This growth in profits was supported by a significant increase in sales of 43%, reaching 6.4 billion pounds.

On the other hand, the profits of the Egyptian Elsewedy Electric Company witnessed a huge jump of 92.2% in the third quarter of the year, reaching 4.8 billion pounds. The company also recorded a significant increase in revenues by 58.8%, reaching 62.2 billion pounds, which reflects a strong improvement in its commercial and financial performance.

In contrast to the positive performance of many companies, Telecom Egypt faced a decline in profits of 13.3% on an annual basis during the third quarter of the current year, recording 2.125 billion pounds. This decline came under pressure from the significant increase in financing costs and the rise in general expenses, despite the company’s revenues growing by 48% to reach about 20.5 billion pounds.

Mohamed Nasr, Managing Director of Telecom Egypt, explained in a statement that financing costs have tripled compared to the same period last year. He pointed out that this increase comes as a result of changes in the pound's exchange rate and high interest rates, which negatively affected the company's net profits.

The Egyptian Fertilizer Production Company (MOPCO) witnessed a significant jump in its profits by 261% on an annual basis during the third quarter of this year, reaching 1.35 billion pounds. This remarkable growth was supported by a 190% increase in revenues to reach 3.15 billion pounds.

In the same context, Misr Aluminum Company achieved strong profit growth of 160% on an annual basis during the third quarter, reaching 4.2 billion pounds, supported by an 89% increase in revenues, reaching 11.3 billion pounds.

ACT Financial also recorded a significant increase in profits by 115% in the third quarter to reach 454 million pounds, supported by a growth in net revenues of 168% to reach 567 million pounds. Data indicate that the company's investments reached 2.94 billion pounds by the end of the third quarter, a growth of 169% since the beginning of the year, which reflects its significant expansion and significantly improved financial performance.

Eastern Tobacco Company (Eastern Company) witnessed a significant increase in its profits by 62% on an annual basis during the first quarter of the fiscal year, which ends in September, to reach 1.82 billion pounds. This growth was supported by a significant jump in revenues of 132%, reaching 23.9 billion pounds.

The positive performance of Eastern Tobacco Company and other major Egyptian companies gives positive signals to the Egyptian Stock Exchange, which may push the main indicators upward. The EGX30 index, which includes the 30 largest companies in the market, aims to reach its historical peak around the level of 34,000 points. While the EGX70 index, which includes small and medium-sized companies, is expected to achieve a new historical peak around the level of 8,420 points, which reflects investor optimism and confidence in the Egyptian market.