Qalaa Holdings records a 13% y-o-y increase in revenue to EGP 3.4 billion in 1Q19 driven by strong growth and progress across all its subsidiaries

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 quarter ended 31 March 2019, recording a 13% y-o-y rise in revenues to EGP 3.4 billion.

• ERC expects to start generating income in July 2019;
• 41% y-o-y revenue growth at TAQA Arabia, with TAQA Solar's 50MW PV project commencing operations in February 2019;
• Tawazon posted an impressive 231% y-o-y rise in EBITDA with revenues expanding 59% y-o-y for the quarter;
• ACCM's 3rd production line to start operations by July 2019;
• Dina Farms increased cultivated area by 450 feddans (200 acres);
• ICDP’s new fresh milk line doubled the company’s production capacity;
• ICDP’s new yoghurt line to increase yoghurt production capacity by 500% starting in August;

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 quarter ended 31 March 2019, recording a 13% y-o-y rise in revenues to EGP 3.4 billion.

Top-line expansion came on the back of robust results posted across its subsidiaries, especially at the Group’s energy platform with TAQA Arabia’ revenues up 41% y-o-y and Tawazon’s up by 59% y-o-y. Meanwhile, ASCOM reported an 18% y-o-y increase in revenues and Nile Logistics saw its top line expand 86% y-o-y.

“We are very close to completing our portfolio restructuring strategy having sold 23 companies so far. The emphasis in the coming period will be on managing cash to achieve the dual goal of reducing risks while making small incremental investments to generate growth. I am pleased to report that Qalaa continues to build on the momentum of 2018 and is off to a strong start in 2019 driven by robust performance across its subsidiaries. Double-digit top-line growth across our energy holdings, alongside Nile Logistics and ASCOM, saw our consolidated revenues grow by 13% to post EGP 3.4 billion, despite declines at ASEC Cement (Al Takamol Sudan) and National Printing,” said Qalaa Holdings Chairman and Founder Ahmed Heikal.

“Growth has been dual-driven by both the streamlining of Qalaa’s portfolio in addition to successful growth strategies that capitalize on favorable economic policies. We began implementing a three-year growth strategy at our energy segment in late 2018 that will see us grow our distribution reach and diversify our offerings. After the successful launch of our Benban solar project, we have identified further PV projects with the objective of strengthening our foothold in Egypt’s burgeoning renewable energy sector. At ERC, our flagship project, most areas and units have been commissioned successfully and trial operations have commenced, with the plant expected to begin generating income in July 2019. Thus far, c.300 thousand tons of low sulfur European specs diesel, naphtha, and high-octane gasoline have been supplied to the Egyptian General Petroleum Corporation (EGPC),” commented Heikal.

“At the Agrifoods space, revenue grew at a steady 8% year-on-year with more rapid growth expected in the near-term as we roll-out several capacity enhancement initiatives, including the installation of curtains and cooling systems at the cattle milking stations. We are also pushing forward with expansions of ASCOM’s production capacity of world-class ground technical calcium carbonate, with the company’s revenue and EBITDA growing by an exceptional 18% and 27%, respectively in 1Q19. At Nile Logistics, our new grain storage warehouse at Nubareya Port is complete and earmarked to launch operations during the second half of 2019,” added Heikal.

EBITDA for the quarter grew 3% y-o-y to EGP 364.4 million in 1Q19, weighed down by Al Takamol Sudan’s results which partly offset the significant EBITDA growth reported by the Group’s energy, mining, and transport & logistics platforms. The Group’s consolidated EBITDA has been growing steadily for the past few years, with FY2018 levels almost three times as high as those in FY2016.

Qalaa booked an EGP 181.7 million FX gain in 1Q19 on the back of a strengthening Egyptian pound against the US dollar, which improved the Group’s USD-denominated debt position and resulted in a gain reported by ASEC Holding on its USD denominated shareholder loan.

Qalaa’s bottom-line losses for the quarter narrowed to EGP 154.6 million on the back of higher revenues and an FX gain booked at the consolidated level.

“Parallel to driving growth across key subsidiaries, management is monitoring the ongoing political unrest in Sudan and consequent devaluation of the Sudanese pound with its effect on Qalaa’s Al Takamol Cement,” said Hisham El-Khazindar, Qalaa Holdings’ Co-Founder and Managing Director. “We expect cement production in Sudan to be hampered in the coming period on the back of fuel supply difficulties. To that end, while we remain committed to allocating the necessary resources to Al Takamol, management is actively working to exit this investment, which along with the ongoing sale process of Zahana Cement, our Algerian subsidiary, would see us fully divest from the cement segment.”

“Continued portfolio restructuring, which included the successful deconsolidation of Africa Railways’ liabilities and is now focused on exiting our cement holdings, leaves Qalaa well-positioned with an optimized and diversified portfolio of companies whose market leadership and expanding capacities allow them to effectively capture growing demand. That, in addition to the imminent launch of commercial production at ERC, leave me optimistic about Qalaa’s growth and value-creating prospects,” El-Khazindar concluded.

Qalaa Holdings’ full business review for 1Q2019 and the financial statements on which it is based are now available for download on


Previous Qalaa Holdings press releases on this subject and others may be viewed online from your computer, tablet or mobile device at

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, Mining and Printing & Packaging. 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
Chief Marketing and Sustainability Officer
Qalaa Holdings (S.A.E.)

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Twitter: @qalaaholdings