Managers have handed in the numbers, auditors have checked and double-checked their figures and now financial results are pouring in. The month of March saw numerous companies post year-end 2010 statements. Business Today takes a closer look at what lies behind those numbers.

Real estate and development
Reversing its 2009 losses worth LE 112 million, SODIC was in the black in 2010, posting a profit of LE 135 million. The company was able to boost its sales 100% to LE 2 billion. It also had cash available at year-end worth over LE 900 million. The strong performance of Egypt’s third-largest listed developer will definitely help it weather the storm of 2011.
The picture for the second-largest listed developer seems much more bleak. Although its profit rose 10.5%, Palm Hills Developments has doubts about its continued survival in 2011. The company posted record profits for 2010 of LE 526 million, yet in a Reuters report analysts predict a cash shortage will likely present a major challenge this year. The company also faces legal disputes that might scare away buyers and investors as well as negatively affect sales.
Talaat Moustafa Group, unlike its peers, saw its profits decline 15% to LE 940 million in 2010 from LE 1.1 billion in 2009. The decline is partly due to the fallback in 4Q profits on the back of the Madinaty dispute. The company also suffered decreased margins due to a rise in material prices.
The newly listed Amer Group started trading on the Egyptian Exchange in November 2010 after an initial public offering that was heavily oversubscribed. Year-end profits stood at LE 557 million, up 10.6% from the previous year’s figure of LE 503 million. The boost is attributed to a 4% growth in real estate sales coupled with the widening of the developer’s gross margins to 52% in 2010 from 44% in the previous year.

Telecoms
The robust telecoms industry posted stronger performances in 2010. Telecom Egypt (TE), the country’s sole fixed-line operator, posted a 2010 consolidated net profit of LE 3.3 billion that is 8% higher than its profits in 2009, which hit LE 3.1 billion. TE owns 45% of Vodafone Egypt, which contributed LE 1.3 billion to TE’s bottom line.
Mobinil, on the other hand, saw its net profit sink 33% in 2010. The company recorded a profit of LE 2 billion in 2009, however, that figured dropped to LE 672 million in 2010, with profits reaching LE 1.4 billion. The drop was attributed to increased competition among mobile service providers, which led to lower prices and margins. Mobinil’s main competitor, Vodafone Egypt, reported a 12.3% drop in profits in the nine months ending December 2010. (The firm’s financial year runs April 1–March 31.)

Banking and finance
CIB reported a consolidated net profit of LE 2 billion, a 15% yearly increase from 2009. As per the bank’s earnings release, non-interest income climbed 27.3% in absolute figures, which constitutes 42.5% of the bank’s total income. Net-interest income also grew 11.2%.

Cement
Egypt’s cement industry reported mixed results: Misr Beni Suef Cement saw its net profit fall 22% at year-end. The company reported a net profit of LE 304 million, compared to LE 390 million during the previous period, whereas Misr Cement Qena posted a 22% increase in profits in 2010 to reach LE 428 million.
Sinai Cement saw its profits surge 35% to LE 904 million after production increased to 3.8 million tons in 2010 from 3.5 million tons in 2009. Accordingly, the company’s sales value rose 7.6%. Furthermore it was able to reclaim LE 176 million in excess taxes. bt