A reasonable 7% y/y rise in revenues in H1 2019 to EGP21.55bn was a result of strong 12% growth in Q1 2019 and modest 2% y/y rise in Q2 2019. Gross profit (net of depreciation) grew by a modest 5% y/y in H1 2019 as both Q1 2019 and Q2 2019 figures showed almost equal growth of c.5%. GPM, however, slid slightly to 18.1% in H1 2019 from 18.4% in H1 2018. Net profit after minority plunged by 20% y/y to EGP1.89bn vs. EGP2.37bn on the increase in administrative and interest expenses and the drop in interest and investment incomes. Given the improved performance of the turnkey projects segment, SWDY could have delivered better results if it were not for the drop in wires and cables revenues and the fall in its gross profit (GPM slipped q/q to 12% in Q2 2019 from 14% in Q1 2019 but stabilized y/y). We expect SWDY to perform better in the coming period with its renewable energy in Greece and Benban, Egypt contributing to cash flows.
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