Egypt Aluminum targets LE138M in profits in revised 2021/2022 budget

CAIRO – 21 April 2021: Egypt Aluminum Company targets to achieve a net profit of LE 138.39 million during 2021/2022, according to the indicators of the revised estimated budget of the company.

The company indicated in a statement to the Egyptian Exchange (EGX) that it targets total sales during the next fiscal year of LE 11.29 billion, compared to sales of the approved plan for the current fiscal year amounting to LE 10.53 billion, and sales expected to be achieved worth LE 10.21 billion in the current fiscal year.

The company had announced earlier that it was targeting to achieve profits of LE 199.87 million during 2021-2021, compared to losses of LE 1.037 billion in the approved plan for the year 2020-2021, and losses expected to be achieved in the current fiscal year of LE 661.25 million.

According to the budget, the exchange rate of the pound is LE 16, compared to an exchange rate of LE 15.75 in the plan approved for the current fiscal year, and LE 15.89 as an expected exchange rate.

Previously, Egypt Aluminum Company (EGAL) said that the Minister of Trade and Industry's decision to impose final preventive measures on imports of aluminum products from items of molds, cylinders and wire for a period of three years, will have positive results for the company in increasing local sales.

The company added, in a filing to the Egyptian Exchange (EGX), Wednesday, that the decision came as a result of serious damage from the increase in imports to the local industry, and the implementation of the decision will start in mid-April.

It stated that the imposed measures include a gradual rate ranging from 16.5 percent in the first year, up to 10.5 percent in the third year of the cif value with a minimum of $333 per ton in the first year, 13.5 percent of the cif value, with a minimum of $271 per ton during the second year, and a ratio of 10.5 percent of the CIF value with a minimum of $ 211 per ton during the third year.

The company recorded net losses of LE 341.3 million since the beginning of July until the end of last December, compared to losses amounting to LE 595.7 million during the same period last fiscal year.

The company's revenues increased during the six months to record LE 501.4 million by the end of December, compared to LE 358.7 million during the same period last fiscal year.

The company attributed the increase in its revenues to the increase in the amount of its sales during the period from 102,764 tons to 157,774 tons, an increase of 55,010 tons, as well as to the increase in the average stock price from $1757 per ton to $1,809 per ton.

It also indicated an increase in net income by LE 255 million over the comparative period, as a result of the decrease in cost factors in the production process, especially electricity and the high prices of metals.