Lecico Egypt’s revenues grow 69% YoY on sanitary ware segment

CAIRO – 15 August 2017: Lecico Egypt’s revenues hiked 69 percent year-on-year to LE 586 million in the second quarter of 2017, and increased 7 percent quarter-on-quarter. The increases were due to the sanitary ware segment, Pharos Holding said in a Monday report.

The sanitary ware segment recorded LE 359 million revenues and contributed to 61 percent of the revenues versus 57 percent in the second quarter of 2016, thanks to exports. Exports stood at 61.3 percent of segmental revenue.

Gross profit recorded LE 131 million in Q2 of 2017 compared to LE 40 million in Q2 of 2016 and decreased from LE 134 in 1Q17. Sanitary ware gross profit contributed 91 percent to the company’s gross profit.

Profits stood at LE 14 million versus LE 19 million in the first quarter of 2017. Profitability was negatively affected by Ramadan and Eid Holidays, Pharos said.

Volume of sanitary ware fell 3 percent year-on-year and 6 percent quarter-on-quarter, despite the growth seen in its revenues. Volumes in the local market fell 7 percent year-on-year and 15 percent quarter-on-quarter.

Pharos highlighted that the average of sanitary ware prices hiked 87 percent to reach LE 305 per piece.

As for the tiles segment, revenues recorded LE 212 million, with an increase of 54 percent year-on-year and 14 percent quarter-on-quarter.

The 11 percent rise in total volumes sold and 3.2 percent in average blended prices contributed to the revenues’ growth, Pharos said. Pharos is also expecting market conditions to remain challenging in the tiles segment in Egypt.

Net debt increased LE 140 million or 14 percent to reach LE 1.12 billion in Q2 of 2017 compared to LE 976 million in Q1 of 2017, while gross debt increased 11 percent to reach LE 1.48 billion.