Qalaa Holdings records 25% revenue growth to EGP 13.2 billion in FY18

Net Profit came in at EGP 1.35 billion; The Group will press on with its restructuring strategy looking to deliver operational profitability and value to shareholders with the imminent start of production at ERC

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 year ended 31 December 2018, reporting revenue growth of 25% y-o-y to EGP 13.2 billion. On a quarterly basis, Qalaa’s revenues were up 34% y-o-y to EGP 3.8 billion in 4Q18. Growth was driven by strong results from all subsidiaries especially Qalaa’s energy subsidiary TAQA Arabia and Sudan’s Al-Takamol Cement, which reported a rise in cement volumes as well as sales price.

“I am very pleased with Qalaa’s results in 2018, which saw our company consistently deliver double-digit top-line growth every quarter leading to a strong 25% increase in our full-year revenues to a record EGP 13.1 billion,” said Qalaa Holdings Chairman and Founder Ahmed Heikal. “The results are a direct consequence of Qalaa’s investment strategy and our drive for operational expansion across our portfolio. Leading the pack was TAQA Arabia which continues to position itself as a leading player in Egypt’s energy sector including gas, power and petroleum products, and is successfully capitalizing on the favorable market liberalization. TAQA is also diversifying its energy portfolio, with its Benban solar project that commenced in 1Q19. Meanwhile, despite the ongoing unrest in Sudan and the operational difficulties facing our subsidiary Al-Takamol Cement, the company was able to leverage its reputation for quality and drive volume growth and increase prices in US dollar terms.”

“We will continue our drive to increase revenues from existing operations with minimal incremental investments while rationalizing costs (particularly energy costs). We also expect significant expansion in top-line going forward as we bring production from our transformational Egyptian Refining Company (ERC) to market. ERC has already began trial operations in early 2019 and as of May has supplied c. 160,000 tons of low sulfur European specs diesel, naphtha, and high-octane gasoline to the Egyptian General Petroleum Corporation (EGPC). We are working to complete all trial operations and begin commercial production by the beginning of 3Q19, and are actively seeking a larger ownership stake in this flagship project,” added Heikal.

EBITDA for the year recorded EGP 1.27 billion, up 36% y-o-y driven by operational growth at Qalaa’s energy sector as well as strong performance at Al Takamol Cement. On a quarterly basis, EBITDA was up 42% y-o-y to EGP 334.2 million.

Qalaa booked a non-cash one-off gain of EGP 3.7 billion in FY18 following the deconsolidation of Africa Railways’ operational liabilities in both Kenya and Uganda. The deconsolidation generated a gain of EGP 2.6 billion in 4Q18, with the balance having been booked during 2Q18 and 3Q18.

“As ERC gears up for commercial production, we are nearing the tail end of our portfolio restructuring program and the shoring up of Qalaa’s financial statements,” said Hisham El-Khazindar, QalaaHoldings’ Co-Founder and Managing Director. “The quarter just ended marked a milestone event where we fully deconsolidated Africa Railways’ liabilities including its debt obligations from Qalaa’s consolidated financials. Despite it being a non-cash transaction, Qalaa’s earlier booked impairments of Africa Railways’ assets were almost entirely netted out with gains from the liabilities’ deconsolidation, leaving Qalaa with minimal losses and having exited a company that faced operational challenges and weighed down on the Group’s profitability.”

“We are also actively working to finalize exits from our cement portfolio that will further strengthen our financial position and serve as a net positive on our bottom line. The results of our restructuring efforts are clear with Qalaa recording a strong 36% increase in EBITDA in FY18, maintaining its strong growth trajectory since FY16. We will continue to push our program to completion over the course of the year and we look forward to delivering operational profitability and value to shareholders with the imminent start of production at ERC and continued growth at other subsidiaries,” El-Khazindar concluded.

Qalaa recorded a net profit after minority interest of EGP 1.35 billion in FY18 versus a loss in the previous year, with the Group’s profitability being supported the non-cash one-off gain. Qalaa’s net profit in 4Q18 recorded EGP 924.0 million versus a loss of EGP 1.3 billion in same quarter last year.

Qalaa Holdings’ full business review for FY2018 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, 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
Chief Marketing and Sustainability Officer
Qalaa Holdings (S.A.E.)

Tel: +20 2 2791-4439
Fax: +20 22 791-4448
Mobile: +20 106 662-0002

Twitter: @qalaaholdings