reports
- Marina William
Oriental Weavers: 4Q22 – Revenues Backed By Devaluation, Volumes; Expo...
LOCAL REVENUES SUPPORTED BY THE RISE IN PRICES AND VOLUMES ACROSS ALL SEGMENTS; CURRENCY DEVALUATION SAVES EXPORT REVENUES 4Q22 revenues reached a new high at EGP3,767 mn (+25.3% YoY, +26.5% QoQ) with the rise supported by both the local and export segments. Local revenues climbed by 57.4% YoY and 38.4% QoQ to reach EGP1,564 mn supported by a rise in prices by 30.5% YoY and 2.7% QoQ, as well as a remarkable rise in volumes of 20.6% YoY and 34.8% QoQ as consumers make an early purchasing deci...
- Marina William
Oriental Weavers: Management Meeting Key Takeaways
LOCAL MARKET * 4Q22 was a solid quarter for local sales because of consumers early-purchase decisions in anticipation of future price increases * Local products witnessed a price increase in November and late January by an average of 13% each time * 8 showrooms were opened during FY22, with 10 more to open during FY23 including two in high-end areas which will support margins EXPORT MARKET * The company’s main European client witnessed periodic shutdowns throughout 2022, affe...
- Marina William
Oriental Weavers: ORWE 3Q22 – Sales slowdown and heightened costs driv...
LOCAL RISE NOT ENOUGH TO OFFSET EXPORTS DROP Revenues came in at EGP2,977 mn, compared to EGP2,782 mn recorded in 3Q21 and EGP3,247 mn recorded in 2Q22 (+7.0% YoY, -8.3% QoQ). The decline in revenues came solely from the decline in export revenues as global inflationary pressures’ marks could be witnessed on consumers’ spending behaviors being directed further towards the necessities. Export revenues recorded EGP1,847 mn (-2.6% YoY, -13.7% QoQ), driven by the decline in volumes by 28.5% QoQ ...
- Marina William
Oriental Weavers: 2Q22 – Rising prices continue; bottom line pressured...
THE TREND OF LAGGING VOLUMES AND SOARING PRICES CONTINUES; ANNUAL REVENUE PERFORMANCE IMPROVES AS SEQUENTIAL TAKES THE BACKSEAT ORWE reported a top-line of EGP3,247 mn for 2Q22, a rise of 13.8% YoY and a drop of 0.6% QoQ. Export revenues contributed 66% of total revenues at EGP2,140 mn (+8% YoY, -1.1% QoQ), while local sales increased by 27% YoY and 0.4% QoQ to reach EGP1,106 mn. Top-line performance was mainly backed by the increase in ASP by 24.9% YoY and 9.5% QoQ. However, volumes lagged ...
- Marina William
Oriental Weavers: 1Q22 – Heightened raw material costs trickle down to...
RISE IN TOPLINE DRIVEN BY PRICES & VOLUMES; TUFTED CAPACITY DIRECTED TOWARDS THE LOCAL MARKET ORWE reported a healthy top-line of EGP3,265 mn, a rise of 18.2% YoY and 8.6% QoQ. Export revenues contributed 66% of total revenues, increasing by 16.5% YoY and 7.5% QoQ. Local sales contributed 34%, increasing by 21.5% YoY and 10.9% QoQ. The rise in local revenues came backed by a 4.6% YoY rise in volumes and a 7.6% rise QoQ. Woven product sales climbed by 19.2% YoY while maintaining flat volumes, ...
- Marina William
Oriental Weavers: 4Q – Healthy operations; bottom-line growth held bac...
HIGHER PRICE POINTS SUPPORT TOP-LINE AS VOLUMES WAVER ORWE reported solid top-line for 4Q21 of EGP3,006, one of the highest the company ever recorded, coming higher than 4Q20 levels of EGP2,818 mn with 6.7% YoY, also higher than the previous quarter of EGP2,782 mn by 8.1% YoY. That record in revenues came mainly supported by higher selling prices both annually and sequentially, following the company’s strategy of shifting into selling higher end products and elimination of products that were ...
- Marina William
ORWE: Management webinar – key takeaways
2021 FINANCIAL HIGHLIGHTS * Management expects 2021 sales to witness a 19-20% growth YoY, which is in line with our expectations of 19%, ending the year at an approximate EGP11 bn in topline. * 2021 net profit after minority and including 4Q21 export rebates of approximately EGP2 mn, is expected to close at EGP1,100-1,150 mn, in line with our expectations, showing a YoY growth in bottom line of 20-21%. * Exports in FY19/20 are entitled to rebates of 70% in cash and 30% in non-cash ...
- Martina Bernaba
Oriental Weavers: 3Q21 – Stable revenue growth and collected export re...
CONSISTENT TOPLINE GROWTH ON THE BACK OF HIGHER EXPORTS VOLUMES AND HIGHER LOCAL ASP ORWE recorded a topline of EGP2.782 billion in 3Q21 (down 2.5% QoQ but up 7.5% YoY), in line with our expectations of EGP2.787 billion. Revenues for 9M21 amounted to EGP8.397 billion, up 26.0% YoY. Export revenues, which constituted 68% of total revenues, increased by 10.5% YoY but dropped by 4.4% QoQ and recorded EGP1.896 billion for the quarter as export demand remained robust throughout 3Q21. This annual i...
- Martina Bernaba
Oriental Weavers: 2Q21 – Exceptional margins driven by solid productiv...
SOLID TOPLINE GROWTH DRIVEN BY INCREASED CONSUMER DEMAND ORWE recorded a topline of EGP2.852 billion in 2Q21 (up 3.2% QoQ and 57.5% YoY), lower than our expectations of EGP3.678 billion. Revenues for 1H21 amounted to EGP5.615 billion, up 37.7% YoY. Export revenues, which constituted 70% of revenues, increased by 73% YoY and 7% QoQ to reach EGP1.98 billion for the quarter due to increase in global demand and ORWE’s online presence. Local revenues for 2Q21 were up 31% YoY but down 4% QoQ and am...
- Marina William
- Martina Bernaba
- Merna Arafat
- Omar Attia
- Zeyad Ahmed
Egypt: Commodity and material prices update – 2Q21
In this report we assess the average material prices for 2Q21 and depict the impact of pricing trends on the financial performance of the relevant listed equities in Egypt. Prices of raw materials in the food and beverages sector continued to normalize in 2Q21, except for prices of SMP and WMP. Accordingly, we expect a gradual recovery of margins to appear in the 3Q21 results of JUFO, EFID, DOMT and OLFIas price increases kick in and with seasonality of revenues. Most companies have an invent...
ABUK ABU QIR FERTILIZERS & CHEMICAL INDUSTRIES
CCAP CITADEL CAPITAL SAE
EKHO EGYPT KUWAIT HOLDING CO
AUTO GB AUTO
EFID EDITA FOOD INDUSTRIES
JUFO JUHAYNA FOOD INDUSTRIES CO.
OLFI OBOUR LAND FOR FOOD INDUSTRIES
DOMT ARABIAN FOOD INDUSTRIES CO DOMTY
ORWE ORIENTAL WEAVERS GROUP
MFPC MISR FERTILIZERS PRODUCTION CO SAE
SKPC SIDI KERIR PETROCHEMICALS CO
- Martina Bernaba
Oriental Weavers: 1Q21 – Exports revive; margins reach record-high lev...
HIGHER VOLUMES SOLD BOOSTS TOPLINE ORWE recorded a topline of EGP2.763 billion in 1Q21 (down 1.9% QoQ but up 21.8% YoY) in line with our expectations of EGP2.639 billion. Export revenues, which constitute 67% of total revenues of 4Q20, dropped by 1.5% QoQ but increased by 31.3% YoY to reach EGP1.86 billion for the quarter. Local revenues for 1Q21 were down 2.8% QoQ but up 6.2% YoY and amounted to EGP907 million. RECORD-HIGH MARGINS DRIVEN BY LOWER COGS/SALES AND LOWER RAW MATERIALS PRICES SEC...
- Martina Bernaba
Oriental Weavers: Valuation update – Recovery unlocks value despite hi...
UPGRADE FV TO 8.75 AND RECOMMENDATION TO OW We update our valuation on ORWE and revise our FV to EGP8.75/share (from EGP8.00/share) and change our recommendation to Overweight (from Equalweight) with an upside of 25%. We increase our FV to factor in recovery in the local and export markets as ORWE adapts to the market changes caused by the pandemic. Sales are expected to be solid in 2021, supported by exports revenues, with secured orders received through 3Q21. On the other hand, hikes in glo...
- Martina Bernaba
Oriental Weavers: 2020 – Exceptional margins for 4Q20 supported by low...
SEQUENTIAL IMPROVEMENT ON THE BACK OF SOLID EXPORT DEMAND ORWE recorded a topline of EGP9.485 billion in 2020 (-6.4% YoY) in-line with our expectations of EGP9.424 billion. 4Q20 revenues amounted to EGP2.818 billion (up 8.9% QoQ and 10.5% YoY) and came in-line with our expectations of EGP2.758 billion. Export revenues, which constitute 67% of total revenues of 4Q20, increased by 16.3% YoY and 9.8% QoQ to reach EGP1.88 billion for the quarter. This is the result of 21.6% YoY and 14.6% QoQ incr...
- Martina Bernaba
ORWE: Management Webinar Key Takeaways
2020 FINANCIAL HIGHLIGHTS * 4Q20 witnessed strong performance with GPM of the quarter in the range of 16%. * ORWE will be closing 2020 with sales down only 7% YoY, with local sales down 12% YoY in terms of value and export down 4% YoY. GPM will be in the range of 13-14%. Bottom-line expected to be around EGP900 million. 2021 FINANCIAL TARGETS * ORWE expects sales to grow +7% YoY translating into EGP10.1 billion with volumes +4% YoY. * GPM margins will be around 10-11% mainly ...
- Martina Bernaba
Oriental Weavers: 3Q20 – Recovering demand and lower polypropylene pri...
EXPORT DEMAND BOOSTS ORWE'S REVENUES ORWE recorded a topline of EGP2,588 million in 3Q20 (+10% YoY and +43% QoQ) beating our expectations of EGP2,195 million by 18%. The hike in revenues is driven by a significant increase in total volume (+17% YoY and +38% QoQ). 9M20 began to recover by narrowing the sharp decline in 1H20, with topline declining by 12% YoY to EGP6,667 million on account of the COVID-induced slowdown in demand since February 2020 and the YoY appreciation in EGP. MARGINS IMPRO...
- Diyar Hozaien
Oriental Weavers: Weaker demand hampers volume and margin growth
LOCKDOWN MEASURES WEIGH DOWN ON LOCAL AND EXPORT DEMAND ORWE recorded a topline of EGP1,811 million in 2Q20 (-31% YoY and -20% QoQ), dual-driven by a decline in total volume (-23% YoY and -22% QoQ) and in average selling price (-11% YoY and +2% QoQ). 1H20 mirrored the same results, with topline declining by 22% YoY to EGP4,075 million on account of the COVID-induced slowdown in demand since February 2020 and the YoY appreciation in EGP. Export revenues (63% of 2Q20 topline) came in at EGP1,14...
- Diyar Hozaien
- Omar Attia
- Sandy Eskaros
- Zeyad Ahmed
Egypt Commodity and Material Prices: Sector outlook and trends – Q2 ...
* Nitrogen Fertilizer producers are ramping up capacity utilisation in an attempt to offset weak urea prices with the outlook still uncertain. * Petrochemicals have fared worse than their Agrochemical peers, as they have been enduring so far an unprecedented crash in oil prices, despite the recent recovery, and demand shocks for almost all crude oil distillates. * Consumer stocks will benefit from the low prices of food and oil-based commodities persisting throughout the quarter, ...
- Dalia Bonna
Egypt: August 2020 EGX30 Rebalancing – Expected additions and deleti...
Pharos’ Expectations for EGX30 Additions and Deletions Additions 1. Egyptian Iron & Steel (IRON) 2. Oriental Weavers (ORWE) 3. Beltone Financial Holding (BTFH) 4. Export Development Bank of Egypt (EXPA) 5. Edita Food Industries (EFID) Deletions 1. Porto Holding (PORT) 2. Egyptian Resorts Company (EGTS) 3. Egyptian Chemical Industries - KIMA (EGCH) 4. Alexandria Mineral Oils Company (AMOC) 5. Orascom Construction PLC (ORAS) Reminder: Criteria For Joining the EGX30 The Egyptian Exchange review....
- Diyar Hozaien
Oriental Weavers: 2020 valuation update – Growth contingent on marke...
We update our valuation on ORWE and revise our FV to EGP8.00/share (from EGP11.75/share) and maintain our Equalweight recommendation with an upside of 50%. We lower our FV to factor in the weaker purchasing power and slower demand for discretionary products as a result of the negative economic impact of Covid-19 both locally and globally, and a deterioration in global polypropylene prices in line with the collapse of the oil market. Despite cutting our near-term forecasts, we believe the stoc...
- Diyar Hozaien
Oriental Weavers: 1Q20 – Topline dragged by Covid-19, but margins sa...
Sales not immune to the global impact of Covid-19 ORWE recorded a topline of EGP2,268 million in 1Q20, down 12.8% YoY and 11.1% QoQ, on the back of slower demand worldwide since mid-February 2020. With the unprecedented impact of covid-19, volumes have decreased by 0.7% YoY and 4.9% QoQ to 29 mn sqm while the average selling price decreased by a more severe 12.2% YoY and 6.4% QoQ owing to competitive factors and changes in sales mix. Export revenues (62% of 1Q20 topline) came in at EGP1,414 m...
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