The Egyptian-Kuwaiti Holding Company (EKH) announced on Sunday an adjusted net profit of $39.5 million for the first quarter of 2025, driven by robust performance in its fertilizers and petrochemicals sectors.

In a statement, EKH highlighted its success in enhancing operational efficiency and leveraging favorable market conditions, which contributed to revenue growth of $195 million in Q1 2025 – a 1% year-on-year (YoY) increase and 17% quarter-on-quarter (QoQ) rise.

The company maintained strong profitability margins, with gross profit margin and EBITDA margin reaching 39% and 38%, respectively, supported by cost optimization and operational capabilities across its subsidiaries.

Key Subsidiary Performances:

1. Alexandria Fertilizers Company (AFC):

   • Revenue: $67 million (+10% YoY)

   • Net profit: $24.6 million

   • Net profit margin: 37%

   • Outlook: Strong performance expected to continue amid rising global urea prices.

2. Spria Egypt:

   • Revenue: EGP 2.42 billion (~$48.3 million) (+42% YoY)

   • Net profit: EGP 494 million (~$9.8 million)

   • Net profit margin: 20%

   • Growth driver: Increased sales and demand for formaldehyde.

3. Nat Energy:

   • Revenue: EGP 882 million (~$17.6 million) (+40% YoY)

   • Net profit: EGP 249 million (~$4.9 million) (+18% YoY, excluding FX gains)

   • Growth driver: Focus on residential and industrial customers.

4. Suez Cement Company:

   • Revenue: $233 million

   • Net profit: $43 million (+11% QoQ)

   • Growth driver: Rising local and export demand in oil & gas sector.

Management Commentary:

• Loay Al-Kharafi, EKH Chairman, expressed satisfaction with the "strong" Q1 2025 results, emphasizing resilience despite global economic volatility. He noted progress in the group’s strategic transformation plans while maintaining excellence in core sectors (fertilizers, petrochemicals, energy).

• John Rock, EKH Managing Director, attributed the performance to operational flexibility, strong urea exports (AFC), and gas supply stability. He highlighted Spria Egypt’s market share expansion and Nat Energy’s growth in gas delivery services.

Strategic Focus:

• Diversifying USD-denominated revenue streams to mitigate FX risks.

• Expanding international markets and export-oriented sectors.

Corporate Background:

• Founded: July 20, 1997

• Listed: Egyptian Exchange (Jan. 1999), Kuwait Stock Exchange (Dec. 2001)

• Core business: Direct investments across five sectors (fertilizers, petrochemicals, gas exploration, power generation, insurance).