Qalaa’s revenues climb 48% y-o-y to EGP 3.1 billion; EBITDA records an exceptional 84% growth y-o-y to EGP 324 million; continued portfolio optimizing reflected in narrowing net losses of more than 50%

Consolidation of mid-cap investment subsidiary, Grandview, contributed significantly to top-and-bottom line growth while divestments during the last two years bears fruit, with loss from discontinued operations falling by 89% y-o-y.

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 3-month period ended 31 March 2018, reporting revenues of EGP 3,083.5 million, up 48% y-o-y on the back of strong growth from its energy subsidiaries, TAQA Arabia and Tawazon, as well as the full consolidation of Qalaa’s 48% owned midcap investment subsidiary Grandview, which contributed EGP 520.5 million to Qalaa’s top-line during the period. EBITDA recorded impressive growth of 84% y-o-y to EGP 324.2 million while net losses narrowed by 54% y-o-y to EGP 186.7 million in 1Q18.

“Qalaa is off to a strong start in 2018 with all key metrics delivering solid double-digit growth while our bottom-line losses have narrowed significantly in the first quarter of the year,“ said Qalaa Holdings Chairman and Founder Ahmed Heikal. “Our top-line grew 48% to record EGP 3.1 billion with growth being dual-driven by our platforms’ ability to capture the economic upturn as well as management’s efforts in streamlining our portfolio.

“We continue to record exceptional growth at our energy plays thanks to favorable policies and carefully articulated strategies that have paved growth avenues in both the conventional and alternative energy space. At TAQA Arabia and Tawazon, existing operations are benefitting from energy subsidy reform while new ventures including TAQA’s Benban Solar Park and Tawazon’s RDF expansion are set to position both companies as key players in the fast-growing alternative energy market. Meanwhile, following the successful restructuring agreement for the Egyptian Refining Company, we are pleased to announce that the plant fired-up its boilers after connecting the refinery to the power and gas grids, with trial runs already underway and commercial operations set to begin by 2019. We continue to explore options to increase Qalaa’s ownership in this mega project that will further solidify our position as a leading energy and infrastructure company,” Heikal added.

Qalaa recorded substantial growth in its EBITDA, which grew almost two-fold in 1Q18 to reach EGP 324.2 million from EGP 175.9 million in 1Q17, representing a y-o-y hike of 84%. EBITDA growth was primarily driven by strong performance in the company’s cement and energy subsidiaries in addition to the consolidation of Grandview.

Net loss after minority interest narrowed significantly to EGP 186.7 million in 1Q18 compared to a net loss of EGP 402.4 million recorded in 1Q17. Losses from discontinued operations, which fell substantially by 89% y-o-y to EGP 25.6 million in 1Q18, were primarily attributed to the sale of Designopolis Mall (MENA Homes), concluded in June 2018.

“Parallel to pushing forward growth strategies across our subsidiaries, we also continue to deliver on our portfolio restructuring and optimization strategies, with recent months having witnessed the execution of numerous divestments from ancillary assets,” said Co-founder and Managing Director Hisham El-Khazindar. “Meanwhile, the start of consolidation of our mid-cap investment subsidiary, Grandview, has contributed significantly to our top-line and EBITDA in 1Q 2018. The continued streamlining of our portfolio is already starting to reflect positively on our financials, with losses from discontinued operations reduced to trivial sums while our bottom-line losses for 1Q 2018 narrowing by c.54% year-on-year despite a two-fold increase in interest expense. On-the-ground operational improvements, solid growth trajectories across our portfolio, the imminent start of production at ERC and the continued clean-up of our financials leave us confident that the coming quarters will gradually bring Qalaa back to profitability and creation of value to our shareholders.

“Management is also particularly bullish on growth prospects for our mining and transportation platforms. ASCOM’s export competitiveness continues to strengthen and Nile Logistics is delivering advantageous river transport services at a time when conventional trucking costs are on the rise.” El-Khazindar concluded.

Qalaa Holdings’ full business review for 1Q2018 and the financial statements on which it is based are now available for download on


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Qalaa Holdings (CCAP.CA on the Egyptian Stock Exchange) is an African leader in energy and infrastructure. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including Energy, Cement, Transportation & Logistics, and Mining. 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
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Citadel Capital (S.A.E.)

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