RVR’s Qalaa holding sees increased revenues

The revenues of Egyptian firm Qalaa Holdings (formerly Citadel Capital) which operates the Mombasa-Kampala railway have increased by 14 per cent.

According to Ahmed Heikal, Chairman and Founder of Qalaa Holdings, the results are as a result of strong performance among its businesses including Africa Railways that runs the Ugandan and Kenyan railway.

The consolidated financial results for the six months ending 30 June 2014 released on Tuesday, point out a six-fold increase in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) to 25 million US dollars (Sh2.26B, EGP, Egyptian Pounds, 181 million)

 Qalaa which transformed from a private equity to an investment group early this year saw its revenues increase to 218 million US dollars (Sh19 billion, EGP 1560.7 million).

“Our results in the second quarter were underpinned by strong operational results from companies including TAQA Arabia, cement division units ASEC Minya and Misr Qena Cement, and Dina Farms in our agrifoods division, among others,” said Heikal.

This is the first quarter that the company has reported a positive EBIT figure at EGP 61.8 million, while its Net Loss after Minority Interest narrowed from EGP 231.9 million in 1Q14 to EGP 178.7 million in 2Q14. 

The results for the six months period ending June 30 2014 also show revenues of 409 Million US dollars ( Sh36 billion, EGP 2,927.5 million), up 33 per cent compared with the pro-forma results of the same period last year.

However, the Net Losses after Minority Interest widened to 11 per cent, a figure blamed on higher interest and foreign exchange charges in the period, and the negative impact of discontinued operations, MENA Malls (Designopolis) losses.

The investment company that is now focussed on five and half sectors- xxx-, got most of its revenue from cement (41%) and energy (26%) on the back of standout performances from units of ASEC Cement as well as TAQA Arabia.

Their agrifood companies Dina Farms, ICDP (fresh milk) and ACST (retail) also turned in strong financial and operational results.

 “We expect continued improvements in EBITDA in the second half and heading into 2015 amid a continued emphasis on both revenue growth and cost control in a business climate that we expect will continue to move in favor of our core investment theses,” said Qalaa Holdings Co-Founder and Managing Director Hisham El-Khazindar.