Ezz Steel (ESRS) saw its net loss widening to EGP1.08bn in Q1 2019 from EGP67mn a year earlier. Revenues stabilized at EGP12.62bn after a decline in selling prices was offset by larger sales volumes. Gross margin plunged y/y by 11.6 percentage points to 2.3%, mostly bruised by tight margins of subsidiaries. Ezz Al-Dekheila’s (EZDK) gross profit margin narrowed to 6.0% from 14.8%, while both Ezz Steel Rebars (ESR) and Ezz Rolling Mills (ERM) showed a gross profit margin of 1.3% overall (vs. 10.4%). Meanwhile, Ezz Flat Steel’s (EFS) gross loss margin widened to 7.6% (vs. 4.9%). ESRS’ weaker performance y/y can be laid at the door of pricier iron ore, along with an increase in electricity costs starting in Q3 2018 (corresponding to Q1 FY2018/19). Meanwhile, pressured selling prices delivered the final below
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