Showing

51

Results

M&A WATCH | EnterpriseAM
EBRD exits Ibnsina Pharma
EBRD has fully exited its investment in Ibnsina Pharma: The European Bank for Reconstruction and Development (EBRD) has sold the last 8.8% it held of EGX-listed pharma distributor Ibnsina Pharma, the lender said yesterday. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The price tag: EBRD didn’t disclose the value of the sale, but EGX yesterday said an EGP 555.5 mn transaction was executed on Ibnsina Pharma’s shares. Some 88.9 mn shares were sold. A successful investment: Since the EBRD invested in the company, it has “grown strongly, becoming the top pharma distributor in the Egyptian market and successfully expanding into a number of non-pharma operations.”By the numbers: Ibnsina Pharma currently holds a 30.8% share of the national pharma distribution market. It also led Egypt’s pharma and hospitals sector last year and ranked first in public and private hospitals, the company said in a release (pdf) earlier this week. What they said: “Ibnsina Pharma has been an incredibly successful investment for the Bank, despite the very challenging Egyptian macro environment,” said our friend Hassan Massoud, the bank’s associate director for private equity in the Southern Mediterranean. “The scale and timing of this transaction is testament to the depth of the EGX as a credible exit venue for successful private equity investments,” he continued.Remember: The EBRD acquired a 20% stake in the pharma player back in 2015 to help the company fund the development of warehouses, distribution centres and overall supply chain. EBRD is still long Egypt: The bank’s other investments here include a who’s-who of corporate Egypt, including Infinity, Hassan Allam Renewable Energy, GlobalCorp, and Tamweely. It has previously been an investor in a leading national hospitals group and has invested some EUR 13.8 bn here since 2012.

Wednesday, 5 February 2025

Kazyon to fuel Morocco expansion plans with USD 30 mn from the IFC
EXPANSION- IFC to finance Kazyon’s expansion ambitions with USD 30 mn loan: Local budget supermarket chain Kazyon is in line for a USD 30 mn loan from the World Bank’s International Finance Corporation (IFC) to fund the company’s expansion agenda in Morocco, the lender said in a project summary.Remember: Kazyon Morocco CEO told Asharq Business last month that the company is investing USD 144 mn to expand in the Moroccan market — particularly in major cities — over the coming four years. The supermarket chain also first tapped into the Saudi market earlier in February, with its 50% stake purchase in Saudi Arabia’s sole discount retailer Dukan in a SAR 250 mn (c. USD 66.7 mn) transaction.DEBT-#1- Egypt to repay a chunk of its loans this November: The government will repay USD 3 bn in loans to Gulf banks by 24 November, Asharq Business reports citing an anonymous government source. The country will repay the loans from the state’s USD reserves, to be equally divided between the green and Islamic financing tranches.It’s also repayment day for some of the country’s bonds: Egypt will repay some USD 1.3 bn in USD-denominated bonds today for debt issued in 2016, according to Al Arabiya, citing unnamed sources. This is expected to bring down external debt owed by the government to USD 80.2 bn, a 5.5% decrease from the USD 84.84 bn recorded at the end of 2023.#2- ERC to repay USD 200 mn in debt by year-end: Qalaa Holdings’ subsidiary Egyptian Refining Company (ERC) plans to repay USD 200 mn of its outstanding USD 742 mn debt by December, company head Mohamed Saad told Al Borsa. This will bring the company's total debt down to USD 524 mn, which it plans to fully repay before the end of 2025. Remember: The multi-bn USD greenfield refinery in Mostorod was funded by USD 2.4 bn worth of loans, which Qalaa has since been trying to pay off despite its businesses achieving good returns. Qalaa’s most recent earnings release shows that of the company’s total consolidated debt standing at EGP 111.2 bn at the end of the first quarter, 72.5% is related to the ERC.Cutting back on costs is also part of the plan: The company’s success in reducing import, storage, and ins. costs helped cut back the government’s fuel subsidies bill by USD 300 mn per year, Hapi Journal reports, citing Saad.RETAIL- Another good reason to quit: US-based tobacco giant Phillip Morris increased the prices of its tobacco products for the the third time this year, upping prices by EGP 5 across its offerings in the local market, according to a letter from the company seen by EnterpriseAM. The price hikes apply to all of the company's offerings including its heated tobacco products, HEETS and TEREA, and traditional cigarette brands Merit, Marlboro, and L&M and their varieties.Philip Morris isn’t the only smokes company upping prices in recent days: EGX-listed tobacco giant Eastern Company on Tuesday similarly hiked prices of its cigarettes by up to EGP 5. The increase came in response to the Finance Ministry enacting the law that allows companies to raise prices by 12% annually without moving into a higher per-pack tax bracket, the head of the Federation of Egyptian Industries’ tobacco division, Ibrahim Imbaby, told EnterpriseAM last week.M&A-New details emerge about Klivvr’s potential new majority owner: The newly established Klivvr Holding — which came to our attention last week with its offer to buy Orascom Financial Holding’s (OFH) entire 98.99% stake in fintech player Klivvr — is owned by the Sawaris family, unnamed sources told Al Mal. The potential transaction comes as part of B Investments' commitment to sell OFH's stake in Klivvr Electronics within a year of acquiring a 68.9% stake in OFH through a share swap earlier this year.We may see more of Klivvr in the local market soon: Klivvr Holding is looking to acquire licenses to perform payment services and non-banking financial services in the local market, the sources added.FOOD SECURITY-Egypt and UK launch project to support local wheat farmers: The Planning and International Cooperation Ministry and the Agriculture Ministry are partnering with the British Embassy in Egypt to bolster food security by “increasing wheat production, addressing price fluctuations, and improving human capital,” the Planning and International Cooperation Ministry said in a statement. The two-year project aims to decrease Egypt's wheat imports by up to 25% by reducing dependency on chemical fertilizers and improving yields. The initiative follows an MoU signed last month, focusing on improving soil fertility and agricultural productivity.LOGISTICS-Egypt and Djibouti ink infrastructure projects agreement: Egypt’s Holding Company for Maritime and Land Transport and Djibouti's Ports and Free Zones Authority signed an MoU to develop infrastructure projects, according to a statement from the Transport Ministry. The statement named ports, roads, logistics zones, and renewable energy facilities as projects that Egyptian companies could offer their expertise and experience to Djibouti.ICYMI: Egypt will supply and install a 276.5 kw solar plant in Djibouti under a bilateral agreement signed between the two sides inked last month. The plant is part of efforts to support Djibouti’s sustainable development plans, and will be implemented alongside training programs to transfer local expertise to Djibouti. EARNINGS-Ibnsina Pharma wraps up 3Q 2024 with record growth in net income: Ibnsina Pharma ended 3Q 2024 with strong financial results, reporting a record net income of EGP 184.9 mn, up 339.9% y-o-y, according to the company’s latest earnings release (pdf). The company’s revenues rose 71% y-o-y to EGP 15.6 bn in 3Q, driven by strong demand across retail and non-retail segments, strategic expansion in high-margin non-pharma products, and re-pricing approvals by the Egyptian Drug Authority that helped offset inflation and currency devaluation impacts.REAL ESTATE-The Social Housing Fund has a new social rent initiative in the works: The Housing Ministry’s Social Housing and Mortgage Finance Fund will design a subsidized rental model in collaboration with the private sector, the fund’s head Mai Abdel Hamid said at last week's World Urban Forum. A pilot rental project in partnership with a fintech company will be launched to test demand and feasibility, Abdel Hamid added.

Sunday, 10 November 2024

AfDB could help fund our 1.1 GW wind farm. PLUS: News from Ibn Sina, Palm Hills, Honor
RENEWABLES- AfDB mulls funding our 1.1 GW wind farm: The African Development Bank (AfDB) is considering financing the 1.1 GW wind farm in the Gulf of Suez being carried out by Saudi Arabia’s ACWA Power and Hassan Allam Holding, according to environmental studies published on the lender’s website.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)Refresher: The wind farm — the largest of its kind in the Middle East — has a price tag of USD 1.5 bn. According to documents released by the bank, construction on the project is expected to begin in 4Q 2024 and continue on for 30 months. The wind farm is slated to start commercial operations in late 2027 and is planned to run for 25 years. A bit later than initially planned: Local news outlet Al Mal reported in late 2023 that the companies would break ground on the project in early 2024, while ACWA Power said the farm would be operational by the end of 2026.CAPITAL MARKETS- A gold SPAC: Gold investment firm Dahab Masr and fintech startup Bokra are looking to launch their own SPAC — which could be Egypt’s first — which will target acquisitions of firms in the precious metals sector, Al Mal reports, citing Dahab Masr CEO Fady Kamel. Work is underway to fulfill the Financial Regulatory Authority’s recently-updated SPAC regulations. Not Dahab Masr and Bokra’s first link up: The two companies in May launched a platform — dubbed Bokra Dahab — that allows users in Egypt, UAE, and KSA to invest in precious metals.MANUFACTURING-Honor could start manufacturing its phones locally: Chinese smartphone maker Honor is reportedly considering setting up a factory to produce its devices in Egypt, with initial investment of USD 10 mn, Al Mal reports, citing unnamed industry insiders. The company is still in talks with the government over the location of the proposed project, which is expected to begin operations in 2025. Honor is currently conducting feasibility studies for setting up production facilities in Egypt, aiming for a local component ratio of up to 45%. The Chinese firm plans to capture a 10% market share of the local smartphone market and has plans to export part of its production. REAL ESTATE-Palm Hills heads to KSA: Palm Hills Development has set up a Saudi branch and appointed SODIC’s former managing director Magued Sherif (LinkedIn) as its CEO, it said in an EGX disclosure (pdf). Other local developers have also made their way to the Kingdom, including real estate giant Talaat Moustafa Group (TMG), which in May launched a smart residential development in Riyadh. The project has hit SAR 3.3 bn in sales since its launch.SUBSIDIES-Gov’t hikes subsidized wheat prices: The Supply Ministry has raised the price of wheat sold to mills for subsidized bread baking by about 20% to some EGP 13.8k per ton starting August, Asharq Business reports, citing a government document. Mills have also increased the price of flour supplied to bakeries producing baladi bread by 35% to EGP 16k per ton. The price hikes will not affect the cost of subsidized bread, which will remain at EGP 0.20 per loaf, an unnamed government official told Asharq Business. The official added that the decision aims to “regulate the wheat system in mills and bakeries.”DEBT-Ibn Sina Pharma denies pressure from creditors: Ibn Sina Pharma has refuted reports that it's under pressure from creditors to sell assets to settle overdue debt, it said in an EGX disclosure (pdf). The pharma distributor stated that its credit facilities from banks are “proof of their confidence in the company's ability to repay.” It clarified that these facilities, which are used to finance part of its working capital, have not yet matured.ICYMI: Local news media Al Shorouk reported on Saturday that Ibn Sina Pharma was planning to sell EGP 900 mn worth of assets to settle part of its outstanding debt, claiming that banks demanded that the company reduce its debt-to-equity ratio.

Monday, 5 August 2024

CAPITAL MARKETS | EnterpriseAM
EIPICO, Ibnsina Pharma, Delta Sugar join EGX30 after index review + EFG tops Egypt brokerage league table in January
Who’s in and who’s out of the EGX30? EIPICO, Ibnsina Pharma, and Delta Sugar have been added to the EGX30, following the bourse’s semi-annual review, according to an EGX statement (pdf). CIRA Education, Credit Agricole, and B Investments were removed from the index to join the broader EGX70 index.New eligibility criteria for EGX30 listing: EGX30 stocks now must trade for 95% of the trading days, instead of 65%, during the review period to maintain their spot in the index. The move aims to enhance liquidity and activity in the market.ALSO- EFG Hermes once again topped the EGX’s brokerage league table in January, with a market share of 13.4%, according to EGX figures (pdf). Arqaam Securities came in second place (10.9%), followed by Thndr Securities (7.8%), and CI Capital (5.8%). EFG Hermes continues its streak heading into the new year, having had a monopoly over the top spot in every month but one in 2023.

Sunday, 4 February 2024

EARNINGS WATCH | EnterpriseAM
Fawry’s bottom line nearly quadruples in 1H 2023; Ibnsina reports rise in earnings
It’s the final days of 2Q earnings season here in Omm El Donia. You can expect a flurry of filings in the coming days. Among those out with results yesterday: FAWRY- EGX-listed e-payments giant Fawry’s adjusted net income almost quadrupled to EGP 327.9 mn in 1H 2023 , according to the company’s earnings release ( pdf ). Revenues climbed 42% y-o-y to EGP 1.4 bn during the period. On a quarterly basis: The company’s adjusted net income rose to EGP 181.1 mn in 2Q 2023, up 342% y-o-y. Revenues grew 45% y-o-y to EGP 768.5 mn during the quarter. Banking services + microfinance underpinned revenue growth in 1H 2023: Fawry’s banking services segment was the single largest driver of the rise in revenues, accounting for 52% of overall topline growth. Banking services generated EGP 547.7 mn in revenues, up 70% compared with the first half of 2022. The company’s alternative digital payments (ADP) segments remained the company’s biggest contributor to its top line, with revenues rising 15% y-o-y to EGP 582.6 mn. The microfinance segment also performed well, generating EGP 168.1 mn of revenues, up 59% y-o-y. What they said: “Our increased profitability at the gross profit, EBITDA, and adjusted net profit levels are consistent with our continued cost control efforts, both direct and indirect, in response to increased inflation which has affected the country since 2022,” CEO Ashraf Sabry said in the release. “There has also been a remarkable expansion of our mobile wallet transactions and mobile wallet throughput value, recording 67.6 mn transactions and EGP 80.5 mn during the six-month period, a rise of 73.9% and 107.7% y-o-y, respectively,” he added. IBNSINA PHARMA- Ibnsina Pharma’s net income rose 49% to EGP 132 mn in 1H 2023 , according to the company’s latest earnings release (pdf). The pharma firm booked net revenues of EGP 14.7 bn in the first half of the year, up 43% y-o-y. Price hikes drive growth: The company reported 19% y-o-y sales growth in the January-June period, which it said was driven by its decision to hike prices. Ibnsina is keeping a close eye on costs: The company continued its “conservative” approach to spending into 2Q, limiting opex growth to 20% y-o-y in 1H 2023 by making efficiency savings on line items from salaries to electricity.

Monday, 14 August 2023

EARNINGS WATCH | EnterpriseAM
EFG revenue, earnings more than double y-o-y in 1Q 2023
EFG Holding reports strong growth in 1Q 2023: EFG Holding reported a net income after tax and minority interest of EGP 885 mn in 1Q 2023, up 157% y-o-y, according to its earnings release (pdf). Revenues were up 129% y-o-y to EGP 4.5 bn, underpinned by growth in treasury operations as well as a strong performance generated by its investment bank and commercial lender aiBank. The breakdown: Revenues at EFG’s investment bank more than tripled to EGP 3.0 bn in 1Q 2023, driven by a 238% y-o-y surge in investment banking revenue to EGP 216 mn and a 44% y-o-y increase in brokerage revenues to EGP 621 mn. The NBFI platform delivered EGP 689 mn in revenue in 1Q 2023, up 15% from the year before — largely thanks to a 78% rise in revenues to EGP 254 mn at valU, the company’s BNPL arm. Meanwhile, aiBank’s revenues rose 65% y-o-y to EGP 727 mn on the back of higher net interest income. EFG acquired 51% of the bank in November 2021. What they said: “Our core operational platforms supported our performance for the period, especially on the sell-side of the house,” Group CEO Karim Awad said in a statement (pdf). “Our investment banking division executed a strong pipeline of [transactions], concluding two equity and seven debt transactions worth an aggregate of USD 2.9 bn. These included the landmark IPOs of Abraj Energy Services on the Muscat Stock Exchange and Adnoc Gas on the Abu Dhabi Securities Exchange — the largest listings on their respective stock exchange.”EFG Holding?The company’s shareholders yesterday voted to change the company’s name from EFG Hermes Holding to EFG Holding, according to a press release (pdf). Shareholders approved a proposal to raise its issued and paid-in capital by 25% to EGP 7.3 bn and to increase its authorized capital from EGP 6 bn to EGP 30 bn. IBNSINA EARNINGS RISE-Ibnsina Pharma’s net income after minority interest rose 22% y-o-y to EGP 72.6 mn in 1Q 2023, according to the company’s earnings release (pdf). Ibnsina booked revenues of EGP 6.8 bn, up 28% y-o-y. Revenue growth was driven by the company’s wholesale segment, while efficiency savings protected its bottom line from the impact of inflation and the EGP devaluation. Ibnsina’s “conservative” strategy reaped rewards: Ibnsina grew revenues in its wholesale business by 63% to hit EGP 2.4 bn, and in its hospital and tenders segment by 30% to reach EGP 1.3 bn. The company pursued a “conservative sales policy” in its core retail business, reducing its credit lines with some pharmacies to mitigate risk amid economic headwinds. That led to more modest growth in the retail segment, which increased 11% to EGP 3.3 bn — meaning its core business accounted for 47% of overall revenues, down from 54% the previous year. And limited cost inflation: Ibnsina also implemented “conservative” policies to limit growth in operational expenditure to 7% even as input costs increased at a much higher rate, making efficiency savings on salaries, electricity, packaging, and printing, among other areas. Ibnsina says it's now the country’s top pharma distributor, citing an IQVIA report that put its market share at 24% in 1Q 2023. “We take great pride in being recognized as the top pharma distributor in Egypt, and we are committed to maintain this position by continuing to innovate, invest, and provide exceptional services,” CEO Omar Abdel Gawad said. “We target in FY23 to restore our revenue growth to reach high teens levels with a significant EBITDA margin enhancement,” he added.

Thursday, 25 May 2023

What the markets are doing on 2 March, 2023
Ibnsina Pharma’s net income dropped 45.2% y-o-y to EGP 172.6 mn in 2022, according to the company’s earnings release (pdf). Revenues, meanwhile, inched up 2.4% to EGP 22.3 bn, driven by increases in the average selling price. On a 4Q basis, net income dipped 26.7% to EGP 53.2 mn, while revenues rose 7.9% to EGP 6.5 bn.The EGX30 fell 1.6% at today’s close on turnover of EGP 2.1 bn (4.1% above the 90-day average). Foreign investors were net sellers. The index is up 15.4% YTD.In the green: AMOC (+2.2%), Oriental Weavers (+2.2%) and Rameda Pharma (+1.7%).In the red: Eastern Company (-4.7%), Fawry (-4.1%) and Credit Agricole Egypt (-2.7%).

Thursday, 2 March 2023

Ibnsina to invest EGP 200 this year. Plus: Kima, e-finance, Aman, Luberef
INVESTMENT-Ibnsina Pharma to invest up to EGP 200 mn in 2023: EGX-listed pharma player Ibnsina Pharma plans to invest as much as EGP 200 mn to add warehouses and strengthen its meds distribution network this year, IR director Mohamed Shawkytold Enterprise. The company could separately deploy more funds to its investment arm AIM, he said. The company invested some EGP 126.7 mn in its core business in the first nine months of 2022, according to its latest earnings release (pdf). It also spent EGP 430 mn to acquire El Shorouk Hospital, while EGP 200 mn was used to buy back shares, Shawky said.El Shorouk Hospital open for business: Ibnsina Pharma has begun trial operations at its Shorouk City hospital ahead of a full launch by the end of 1Q 2023, Shawky added. The company acquired the hospital last May. INDUSTRY-Kima wants to raise USD 300 mn: EGX-listed, state-controlled Egyptian Chemical Industries (Kima) is looking to secure USD 300 mn to fund its nitric acid and ammonium nitrate project — either through a loan or by partnering with a strategic investor, company head Abdelmeguid Hegazy told Al Mal. The company is set to sign contracts for the project within three months with Italian contractor Maire Tecnimont, with whom Kima late last year settled a dispute over former projects. It will produce some 600k tons of nitric acid and 800k tons of ammonium nitrate annually once operational, with construction expected to take two years. Green ammonia in the works: Kima is also looking into adding three production lines at its existing fertilizer facilities to produce some 400k tons of green ammonia annually, Hegazy reportedly said. Al Ahly Pharos is advising the firm on both projects.NON-BANK FINANCIAL SERVICES-Aman could be preparing a sukuk issuance:Raya Holding’s non-banking financial services outfit Aman Financial Services could issue EGP 500 mn in sukuk this year, Hapi Journal reported, citing statements by CEO Hazem Moghazy. The company issued EGP 403 mn in securitized bonds a few weeks ago, kicking off a EGP 5 bn securitization program.FINTECH- e-Finance x Giesecke+Devrient: State-owned tech company e-Finance signed a cooperation agreement with Giesecke+Devrient (G+D) that could see the German security tech company debut new card issuance and digital payments services in Egypt, according to a press release (pdf). ENERGY-Petrojet awarded USD 150 mn Luberef contract: Saudi Aramco’s refining unit has awarded state-owned oil and gas contractor Petrojet a SAR 555 mn (c. USD 150 mn) contract to expand its base oils plant in Yanbu, it said in a disclosure to the Saudi stock exchange.

Monday, 27 February 2023

No talks to sell Suez Port management rights to ADP, says TransMin
INFRASTRUCTURE- Gov’t denies ADP-Suez Port talks: The Transport Ministry has denied that it’s in talks to sell development and management rights at Suez Port to Abu Dhabi Ports. Asharq Business had reported last month that the ADQ-owned company was in advanced talks to take over management of the port under a usufruct contract, citing sources it said had knowledge of the matter. In a statement yesterday, the ministry denied talks were taking place and called the report “completely false and baseless.”PHARMA-Ibnsina Pharma signs second distribution agreement with an int’l drugmaker in as many weeks: Ibnsina Pharma will distribute treatments by German pharma giant Boehringer Ingelheim — including for diabetes, hypertension, respiratory diseases, and stroke — under a new agreement between the two firms, it said in a press release (pdf) yesterday. Ibnsina last week inked an agreement with Swiss pharma giant Sandoz to distribute its OTC medications in Egypt.REAL ESTATE- NUCA approves support for real estate players: The New Urban Communities Authority (NUCA) has approved measures announced last week by the Madbouly government to help developers weather a tough economy, according to a statement. The measures grant developers a 20% deadline extension on their projects, allow them to mark projects as complete earlier in the construction timeline, and reduce the interest rate they pay on installments for state-owned land. TELECOMS-Telecoms regulator reportedly paving the way for WiFi calling services: The National Telecom Regulatory Authority is working to make WiFi calling services available at some point this year, Al Borsa reports, citing unnamed sources. The regulator is in talks with the country’s mobile network operators on how to implement the service, which would allow mobile phone owners to make calls using their WiFi connection.

Monday, 6 February 2023

IFC, Tadamun partner to expand microfinance for women-led SMEs
DEVELOPMENT FINANCE-IFC, Tadamun to boost women-led micro firms: The International Financial Corporation (IFC) has agreed to assist Tadamun Microfinance Foundation in digitizing and expanding its services, it said in a press release (pdf) last week. Tadamun is a local social enterprise focused on providing women micro entrepreneurs with access to finance and technical expertise. The project is being financed by the World Bank's Micro, Small and Medium Enterprises (MSME) facility, and will see the IFC design and pilot a program to help the lender expand its reach to the smallest women-run businesses across the country.BANKING-French cloud and managed security outfit Atos is stumping for more business in Egypt, with Egypt GM Ahmad Elharany quoted as telling Al Mal that the company is talking with National Bank of Egypt, CIB and aiBank about potential work. Atos is working on a digital banking project with Banque Misr, as we’ve previously reported.COMMODITIES- GASC announces int’l corn + veg oil tenders: State grains buyer GASC is seeking its second ever shipment of corn from overseas, it said in a statement, without specifying the amount it is looking to buy. Bid should be submitted on Wednesday, 1 February for delivery between 20 February and 10 March, with the shipment funded by the International Islamic Trade Finance Corporation. The authority is also seeking 30k tons of soybean oil and 10k tons of sunflower oil in an international tender tomorrow, for arrival from 25 February to 20 March, it said in a statement picked up by state-run MENA news agency.INFRASTRUCTURE -Qatari state utility company Kahramaa has awarded Elsewedy Cables Qatar a QAR 1.2 bn (USD 329.6 mn), 30-month contract to establish a new underground transmission line, Elsewedy Cables Qatar shareholder Aamal announced in a statement last week. Elsewedy Cables Qatar is 73.4% owned by Qatari industrial group Senyar Industries Qatar Holding, which is 50% owned by Aamal.INVESTMENT WATCH-Indian seed producer to boost Egypt ops: Indian seed producer Hytech Seed wants to expand its North African exports this year by upping production at its Egyptian facility Misr Hytech, Al Mal reports. This came following President Abdel Fattah El Sisi’s visit to India last week, during which he met with business leaders to discuss increasing investment in Egypt.PHARMA-Sandoz partners with Ibnsina Pharma to distribute OTC products: Ibnsina Pharma will distribute and market Sandoz’s over-the-counter pharma products in Egypt under a new agreement between the two firms, Ibnsina said in a statement (pdf). Sandoz is a division of Swiss pharma giant Novartis that sells generic pharma products and biosimilars.TELECOMS-Sawiris’ Italian webmail service provider suffers outage: Naguib Sawiris-majority owned Italian web firm ItaliaOnline suffered an outage last week, affecting 9 mn users, Reuters reports. The company resolved the issue and mailboxes were restored on Thursday, it said in a press release, but Italian authorities are still after answers over the outage.M&A Watch? Orascom TMT Investments — a company whose majority owner is Naguib Sawiris — currently owns 72.5% of ItaliaOnline, and was reported last year to be considering selling its stake in the company.

Monday, 30 January 2023

Earnings watch: Ibnsina Pharma, Export Development Bank,
Ibnsina Pharma’s net income after minority interest fell 50.6% y-o-y to EGP 119.60 mn in 9M 2022, according to the company’s earnings release (pdf). Net revenue during the period inched up 0.4% y-o-y to EGP 15.81 bn.Export Development Bank of Egypt’s net income rose 125.6% y-o-y to EGP 993.5 mn in 9M2022, according to its earnings release (pdf). The bank’s net interest income rose 48.6% y-o-y to EGP 2.15 bn during the period. MARKET ROUNDUP-The EGX30 rose 0.01% at today’s close on turnover of EGP 593.89 mn (48.2% below the 90-day average). Local investors were net buyers. The index is up 1.6% YTD.In the green: Rameda (+3.2%), Ibnsina Pharma (+2.5%) and Orascom Construction (+2.2%).In the red: Fawry (-2.6%), Ezz Steel (-1.8%) and EFG Hermes (-1.6%).

Tuesday, 15 November 2022

EARNINGS WATCH | EnterpriseAM
GB Auto shrugs off auto sector headwinds to post 31% bottom line growth
GB Auto net income up 31% in 2Q despite market challenges: GB Auto shrugged off the multiple headwinds facing the Egyptian automotive sector in 2Q 2022, announcing yesterday that its bottom line grew by almost a third during the quarter thanks to strong consumer demand. The company posted a net income of EGP 490.5 mn during the April-June period, up 31% from 2Q 2021, despite import restrictions, the devaluation of the EGP, and inflation weighing on the sector, the company said in its latest earnings release (pdf). Revenues rose almost 8% to EGP 7.83 bn, which the company attributed to “resilient” demand and “improved pricing strategies.” Auto revenues stable + NBFS drives growth: Revenues from the auto and auto-related segment rose 1.1% y-o-y to EGP 5.82 bn as an “optimized product portfolio,” an enhanced pricing strategy, and a move to increase inventory levels helped to offset market headwinds. Revenue growth from commercial vehicles and after-sales offset a 6.5% y-o-y fall in passenger car sales and a 33% decline in motorcycle sales. The company’s non-bank financial services arm, GB Capital, saw revenues rise 27% y-o-y to EGP 2.36 bn and doubled its net income to EGP 276.9 mn thanks in part to strong growth at MNT-Halan. Remember: All is not well in the local car market. The local passenger car market contracted by 33% y-o-y and 32% q-o-q during 2Q due to import restrictions and a slowdown in opening letters of credit (L/Cs), GB Auto said. Looking ahead: “In the coming period, we will remain focused on maximizing margins on the available inventory and minimizing overheads until the import situation improves,” said CEO Nader Ghabbour. “Challenging conditions are likely to persist for a number of quarters; however, we are confident in our ability to effectively respond to changing dynamics and carry forward with our growth targets once the economic situation improves,” said Ghabbour. Ibnsina cuts full-year outlook amid challenging conditions: Ibnsina Pharma’s net income fell 48% in 2Q 2022 as the EGP devaluation, rising inflation and supply chain disruptions hit the company’s finances. The company reported a bottom line of EGP 28.4 mn compared to EGP 59 mn in 2Q 2021, while revenues declined 8% to EGP 4.93 bn, according to figures in the company’s latest earnings release (pdf). The company noted that the slide in the EGP against the greenback had a pronounced impact on costs, prompting the company to take steps to curb OPEX growth by “optimizing” expenses including salaries, electricity usage and packing. ALSO FROM IBNSINA- The pharma firm’s investment arm AIM is eyeing investments in the logistics and healthcare sectors, with plans to invest in a hospital within two months, Al Borsa reports, without disclosing the size of the investment. AIM has a EGP 280 mn investment budget to make acquisitions in logistics and digital transformation, said co-CEO Mahmoud Abdel Gawad in the earnings release.

Monday, 15 August 2022

EARNINGS WATCH | EnterpriseAM
Ibnsina earnings up 17% in 1Q 2022
Ibnsina Pharma’s net income rose 17% y-o-y in 1Q 2022 to EGP 58.8 mn, according to the company’s latest financial statements (pdf). Ibnsina booked revenues of EGP 5.3 bn, up 12% y-o-y.

Monday, 23 May 2022

M&A WATCH | EnterpriseAM
Saudi food group eyes Ole bakery + Ibnsina breaks into hospitals with El Shorouk acquisition
Saudi food conglomerate Savola Group is close to acquiring the Egyptian Belgian Company — best known for its Ole-branded baked goods — in a transaction worth c. EGP 600 mn, a source familiar with the matter confirmed Enterprise. Hapi Journal had reported that the acquisition would see the company acquire both the manufacturer’s assets and its brand name. Our source was not able to confirm this or disclose an exact timeline for the acquisition.This isn’t the first time Ole has been up for grabs: Edita Food Industries was interested in acquiring assets belonging to the company but talks fell through in January after the two sides failed to reach an agreement on valuation.Savola has been eyeing acquisitions in Egypt’s food sector for a while: The company said last year that it is considering acquiring food companies in Egypt. Savola said at the time that it would target companies who produce items not covered by its existing portfolio.Savola is already a big player in our market — even if it’s not a “household name”: The company is behind popular local cooking oil, ghee, pasta, and sugar brands including Rawabi ghee, Afia oils, and El Maleka and Italiano pastas. Its products are sold across the region, including in the Gulf, Sudan, and Turkey. Egypt accounted for about 17% of Savola’s revenues in 1Q 2022, according to the company’s investor presentation.ADVISORS- Zilla Capital is acting as the Egyptian Belgian Company’s financial advisor, while Al Ahly Pharos is Savola’s financial advisor, our source confirmed. OTHER M&A NEWS- Ibnsina Pharma is getting into the hospital business with the acquisition of El Shorouk Hospital in a transaction worth EGP 430 mn, the company said in a press release (pdf) yesterday. Ibnsina will pay EGP 200 mn in cash and will settle existing debts owed by the hospital. The statement does not make clear who the seller is. Company representatives did not respond to Enterprise’s request for comment.What they’ve bought: Ibnsina will acquire the hospital’s real estate and operational assets, as well as the operating company. The 105-bed hospital serves residents across Shorouk City and neighboring Madinaty, Rehab, Badr City, New Cairo, and East Cairo.What they said: “The rollout of the Universal Healthcare plan and the construction of new cities are behind our appetite for further investments in the healthcare sector. Population growth and having more people covered translates into higher demand for healthcare services,” said co-CEO Omar Abdel Gawad.Looking ahead: Ibnsina will work on renovating the hospital and installing new equipment by the end of the year. The company has also hired a new team to manage the hospital, it said.

Monday, 23 May 2022

EARNINGS WATCH | EnterpriseAM
Cleopatra Hospitals, Ibn Sina report 2021 results
Cleopatra Hospitals (CHG) reports record 4Q2021 results: Cleopatra Hospitals Group’s (CHG) net income grew 6% y-o-y in 4Q2021 to EGP 122.6 mn, according to the company’s earnings release (pdf). The company’s bottom line was underpinned by its highest-ever quarterly revenues, rising 6% y-o-y to EGP 648.7 mn. On a full-year basis, CHG’s net income rose 38% y-o-y to EGP 410.7 mn, with revenues growing 28% to EGP 2.54 bn.Growth was “balanced” across CHG’s facilities, with its polyclinics delivering 70% top line growth and fertility-specialist Bedaya Hospital recording a “steady increase in patient volumes,” boosted by a growing demand in medical tourism. The group served 1 mn cases across its facilities throughout the year, which allowed it to deliver on its long-term targets. The group’s covid-related revenues grew 49% to EGP 274.6 mn, contributing to 11% of its total revenues for the year.“2021 was a transformational year for CHG which saw us deliver robust financial and operational results while taking important strides forward on our longer-term growth and development strategy,” CEO Ahmed Ezzeldin said.Looking ahead: The group launched a new multi-specialty surgical model in its El Katib Hospital, the results of which it expects to see reflected on revenues later this year. “Our overarching goals for 2022 remain unchanged as we look to drive new organic and inorganic growth, further optimize all aspects of our operations, and, most importantly, continue serving our patients and their families to the best of our abilities,” said Ezzeldin. Ibnsina Pharma’s net income more than tripled y-o-y in 4Q2021 to EGP 74.4 mn, according to the company’s earnings release (pdf). The company booked revenues of almost EGP 6 bn, rising 20% y-o-y. On a full-year basis, the company’s bottom line rose 40% y-o-y to EGP 315.7 mn, on the back of a 16% y-o-y increase in revenues to EGP 21.7 bn.Price hikes, OPEX cuts drive growth: Ibnsina reported sales growth of more than 7% during the year, which it said was “mainly driven by increases in the average selling price.” The company also said it had managed OPEX growth, cutting OPEX to sales to 3.8% from 4.4% in 2020.Looking ahead: Ibnsina is forecasting double-digit retail sales growth in 2022 as strong economic growth and a rising population supports consumer demand. It also expects non-retail sales to grow this year in anticipation that public procurement processes will become more efficient.

Monday, 21 March 2022

EARNINGS WATCH | EnterpriseAM
e-Finance profits fall 15% in 3Q2021
e-Finance saw its net income dip 20% y-o-y in 3Q2021 to EGP 99.3 mn, according to the company’s first quarterly financials (pdf) as a publicly traded company. Revenues rose around 25% y-o-y during the quarter to EGP 395.2 mn. On a nine-month basis, net income rose 35% y-o-y to EGP 374.8 mn during 9M2021 while revenues rose 59% y-o-y to reach EGP 1.3 bn. The state-owned fintech platform listed on the EGX last month, raising some EGP 5.8 bn in the IPO. That might not be all for e-Finance, with the firm currently deliberating selling shares in two of its subsidiaries, Khales and e-Cards. Shares in the state-owned tech firm closed down 7.4% at EGP 19.17 as of the close of trading yesterday, a sell-off that, according to one analyst who asked to remain anonymous, was triggered by the disappointing results. Still, the company’s shares are handily above water, having made their market debut at EGP 13.98. More is riding on end-of-year financials: Investors will get a fuller picture come the new year about whether the high expectations generated during the IPO process are justified. Over the next couple of quarters, the market will look to see progress from the company on its advertised plans (projects on e-everything from e-invoicing to e-gates), according to our source. EDITOR'S NOTE- This story was updated on 15 November to correct net income figures for 3Q2021 and 9M2021. Egypt Kuwait Holding’s net income rose 60% y-o-y in 3Q2021 to USD 46.8 mn, according to the company’s quarterly earnings release (pdf). Revenues during the quarter came in at USD 211.6 mn, up 45% from 3Q2020. Top-line growth was fuelled by a 60% surge in revenues from the company’s fertilizers and petrochemicals business, which benefited from the boom in commodities and urea prices. EKH’s energy segment saw revenues grow 12% during the three-month period. Share conversion “well received”: “EKH’s recent optional conversion of its listed shares on the EGX was well received by the market, with institutional investors opting to convert 83% of their holdings in EKH’s shares from USD to EGP,” CEO Sherif El Zayat said. In total, 68% of the company’s EGX shares were converted to EGP. Ibnsina Pharma reported EGP 5.6 mn in quarterly net income for 3Q2021, up 20% y-o-y increase from the same period last year, according to the company’s earnings release (pdf). Its net revenues for the same period increased by 16.4% y-o-y to EGP 5.6 bn. Separately, the company is planning to increase its capital to EGP 280 mn from EGP 240 mn through new shares, which will be put up for a vote at an extraordinary general assembly meeting (pdf) later this month. Odin Investments’ net losses widened in 3Q2021 to EGP 374k, falling 6.4% y-o-y, according to the company’s financials (pdf). The company’s revenues also dipped 9.7% y-o-y to EGP 4.5 mn during the quarter.

Monday, 15 November 2021

Ibnsina’s investment arm to pour EGP 440 mn into logistics firm
EGX-listed Ibnsina Pharma’s investment arm AIM is investing EGP 440 mn to establish a logistics service provider, Ramp Logistics, according to an EGX disclosure (pdf). The third-party logistics business is set to provide warehousing and transport services, and will be 99% owned by AIM.Ramp Logistics is planning both sector and regional expansion: The company is looking to serve sectors outside of pharma in Egypt while also planning to grow its geographical footprint. Ramp has already signed a contract with Orchid Kuwait Egyptian Company to set up a new 31k sqm warehouse in Tenth of Ramadan, doubling its storage capacity. “The planned expansion by Ramp Logistics … will allow Ramp Logistics to lower the required initial capex needed for expansion and extend the payment of investment cost over a long period,” said Omar Abdel Gawad, co-CEO of Ibnsina Pharma.Background: Ibnsina, a pharma distributor, had previously signaled plans to shore up its logistics capabilities and was looking to invest EGP 180 mn in 2021 to set up new distribution hubs and improve its tech infrastructure.

Monday, 8 November 2021

EGX up 2.8% YTD
The EGX30 fell 0.3% at today’s close on turnover of EGP 1.6 bn (3.6% above the 90-day average). Foreign investors were net sellers. The index is up 2.8% YTD.In the green: Cleopatra Hospitals (+5.9%), Ezz Steel (+2.9%) and EKH (+1.7%).In the red: Pioneers Holding (-4%), Raya (-3.7%) and Ibnsina Pharma (-3.3%).

Wednesday, 15 September 2021

Ibnsina net income up 45% in 2Q2021
EARNINGS WATCH- Ibnsina Pharma saw its net income rise more than 45% to EGP 56.3 mn in 2Q2021, compared to EGP 38.7 mn in the same period last year, according to the company’s earnings release (pdf). The bottom-line growth was fuelled by a 21% rise in revenues, which reached almost EGP 5.4 bn during the quarter from EGP 4.4 bn last year.During the first six months of the year, Ibnsina saw a 20% y-o-y rise in net income to EGP 106.7 mn from EGP 89 mn a year earlier.“Ibnsina Pharma is in clear sight of its strategic objectives for the year” thanks to the strength of Egypt’s pharma market, which is rebounding from the shock of the covid pandemic, said co-CEO Omar Abdel GawadLooking ahead: Growth during the first six months of the year has set the company on “a path to even stronger growth over the remainder of 2021,” Gawad said. “Heading into 2H2021, we anticipate an increase in Ibsnina’s top-line growth rate which will bring it into line with previous guidance, helped by the company’s ability to leverage economies of scale across its operations.”Alexandria Medical Services saw its net income rise to EGP 15.4 mn in 2Q2021, from EGP 184.3k in losses in the same period last year, the company reported (pdf). The medical firm’s revenues rose 69% to EGP 67.8 mn in the April-June period, compared with EGP 40.1 mn last year.Maridive Oil and Services narrowed its losses in the second quarter to USD 12.5 mn, from USD 20.3 mn in 2Q2020, according to the company’s financials (pdf). This came despite revenues falling by almost half to USD 29.5 mn, down from USD 57.6 mn last year.Abu Dhabi Islamic Bank Egypt (ADIB) saw its bottomline rise to EGP 347.9 mn in 2Q2021, compared to EGP 300.2 mn during the same period last year, according to the company’s financial results (pdf). Net interest income also rose to EGP 842.7 mn in 2Q2021, compared to EGP 765.5 mn last year.Export Development Bank of Egypt reported a rise in its bottomline to EGP 159.5 mn in 2Q2021, compared to EGP 125.2 mn in 2Q2020, according to the bank’s financial results (pdf). Net interest income increased to EGP 483.3 mn in 2Q2021, compared to EGP 395.5 mn in 2Q2020. The EGX30 rose 1.3% at today’s close on turnover of EGP 1.55 bn (14.2% above the 90-day average). Local investors were net sellers. The index is up 1.7% YTD.In the green: Speed Medical (+4.6%), Egypt Kuwait Holding (+4.4%), and CIB (+3.0%).In the red: Raya Holding (-2.5%), TMG Holding (-2.4%), and Medinet Nasr Holding (-2.2%).

Sunday, 15 August 2021

Sodic, Ibnsina report higher net incomes, OIH narrows net losses
EARNINGS WATCH- Sodic’s bottom line surged over three-fold in 1Q2021, reaching EGP 100 mn after tax and minority interest, from only EGP 30 mn in the same quarter last year, the upmarket developer said in its earnings release (pdf). Revenues for the quarter increased 60% y-o-y to EGP 849 bn, while gross contracted sales surged 114% to a record EGP 1.85 bn from 333 units sold. The company delivered 120 units in 1Q2021, up from 100 in 1Q2020. Nearly two-thirds of sales were in West Cairo, with newly launched development Karmell contributing to 35% of the quarter’s sales and other projects in the area contributing a further 27%. Some 38% of sales were in East Cairo, led by Sodic East and Villette.Looking ahead: “We are pleased and excited to deliver an excellent set of results for the first quarter of the year, putting us on track to achieve our annual guidance,” Sodic Managing Director Magued Sherif said. The first quarter of 2021 was “the best … on record for gross contracted sales,” supported by “strong momentum” from the previous three months. The company will remain committed to construction and delivery timelines across its projects, and will continue to invest in a “portfolio of prime assets to deliver on our strategy to create sizable future recurring revenues, Sherif added.Ibnsina Pharma reported a net income of EGP 50.4 mn in 1Q2021, slightly up from EGP 50.3 mn from 1Q2020, according to its earnings statement (pdf). Sales increased 7% during the quarter to reach EGP 4.75 bn, compared to EGP 4.44 bn in the same quarter in 2020.The outlook: “Ibnsina Pharma welcomes the new year with optimism and in a position of strength … [as the] the first quarter has set Ibnsina Pharma on a path to even stronger growth,” co-CEO Omar Abdel Gawad said. The company’s priority area looking ahead is to leverage “all possible avenues” for rapid growth and work on “margin-boosting efficiencies through a variety of cost-based measures,” co-CEO Mohamed Abdel Gawad added.Orascom Investment Holding (OIH) reported a 75.8% drop in its net losses to EGP 103 mn in FY2020, compared to EGP 425 mn a year earlier, according to the company’s earnings release (pdf). Revenues fell to EGP 730.38 mn during the year from EGP 811.4 mn in 2019. Earlier this year, OIH spun off its non-bank financial services holdings into Orascom Financial Holdings through a horizontal demerger.MARKET ROUNDUP- The EGX30 rose less than 0.1% at today’s close on turnover of EGP 1.77 bn (26.6% above the 90-day average). Foreign investors were net sellers. The index is down 4.9% YTD.In the green: CI Capital (+13.3%), Export Development Bank (+3.3%) and Orascom Financial Holding (+3.1%).In the red: Sidi Kerir Petrochem (-2.4%), Ibnsina Pharma (-2.4%) and Cleopatra Hospital (-2.0%).

Monday, 31 May 2021

Also on our Radar on 10 May 2021
Ibnsina Pharma will digitialize health services offered by the General Authority of Healthcare in hospitals that serve the country’s universal healthcare system under an agreement signed on Thursday, Ibnsina said in a statement (pdf). The contract will see Ibnsina digitize the authority’s supply chain and develop applications that offer virtual medical consultations. Bechtel wants in on more of Egypt’s megaprojects: US infrastructure giant Bechtel is looking to expand its business in Egypt, with an eye to get in on more of the country’s megaprojects, including managing new cities, President of Bechtel’s infrastructure global business unit Shaun Kenny told Prime Minister Moustafa Madbouly during a meeting yesterday, according to a cabinet statement. Bechtel is expected to lead the planned construction of Cairo Metro Line 6, Transport Minister Kamel El Wazir previously said.

Monday, 10 May 2021

MOVES | EnterpriseAM
Abdelaziz Ali named non-executive chairman of Ibnsina Pharma
Abdelaziz Ali (bio) has been appointed non-executive chairman of Ibnsina Pharma, according to an EGX disclosure (pdf). Ali also serves as chairman of the Egyptian Agricultural Production Company, and has co-founded high-profile companies companies including Chipsy, Al Shorouk Hospital and El Masreyeen Dairy.

Monday, 5 April 2021

EARNINGS WATCH | EnterpriseAM
Earnings watch: Ibnsina, EKH, Palm Hills, Al Baraka Bank, Domty
Ibnsina Pharma’s net income tumbled 71% y-o-y in 4Q2020 to EGP 24.2 mn, down from EGP 83.2 mn in 4Q2019, the pharma distributor said in its annual earnings statement (pdf). The drop comes despite net revenues rising 6.6% y-o-y during the quarter to EGP 4.9 bn. On a full-year basis, Ibnsina saw a 32% y-o-y drop in net income to EGP 225 from EGP 329 mn a year earlier, while its top line rose 12.5% y-o-y to EGP 18.7 bn from EGP 16.6 bn.The outlook is brighter: “We are confident that the market has used 2020 to build the experience necessary to cope successfully with covid-related disruptions, and that Ibnsina Pharma will leverage the anticipated rebound in sales in FY2021,” said co-CEO Omar Abdel Gawwad.Egypt Kuwait Holding’s (EKH) attributable net income fell 11% y-o-y to USD 27.0 mn in 4Q2020, down from USD 30.3 mn in 4Q2019. EKH’s 4Q2020 top line came in at USD 146.6 mn, compared to USD 149.5 mn in 4Q2019. On a full-year basis, the company recorded attributable net income of USD 116.3 mn compared to USD 115.6 mn in 2019, according to an earnings release (pdf). EKH’s top line rose 7% y-o-y to record USD 603.3 mn in FY2020, compared to 563.6 in FY2019, which Chairman Moataz Al-Alfi said was a result of the company’s diversification strategy and the strength of its portfolio. Management were able to introduce measures that helped boost cost control/optimization and improve operational efficiency across its fertilizer and petrochemicals segments, bolstering the company’s margins in 2020.Looking ahead: EKH will capitalize on the energy segment’s growing market to expand the Group’s client portfolio and aims to leverage capacities to identify significant value generating ventures from the Egyptian government’s compressed natural gas (CNG) expansion initiative. EKH will “maintain a conservative approach” on commodities despite international consensus that we’re entering a commodities supercycle on the back of market recovery as the covid-19 vaccine is rolled out.Palm Hills Development’s net income fell 35% in 4Q2020 to EGP 228 mn from EGP 349 mn in 4Q2019, it said in its earnings statement (pdf). Revenues during the quarter fell 36% y-o-y to EGP 1.7 bn, despite new sales picking up during the last three months of the year.Al Baraka Bank Egypt reported EGP 1.26 bn in net income in 2020, up from EGP 1.07 bn in 2019, according to an EGX disclosure (pdf).Domty recorded EGP 52.9 mn in net income in 4Q2020, up 35% y-o-y from EGP 39.1 mn in the same period the previous year, according to its earnings release (pdf). Revenues during the quarter rose 26% y-o-y to EGP 815.7 mn, from EGP 646.9 mn in 4Q2019. On a full-year basis, Domty’s net income came in at EGP 158 mn, up from EGP 156.2 mn in the previous year, while revenues rose to EGP 3 bn from EGP 2.67 bn in 2019.

Tuesday, 2 March 2021

FINTECH | EnterpriseAM
Ibnsina to tap healthcare fintech with new company
Ibnsina Pharma is making another play for the tech space, announcing in an EGX filing (pdf) yesterday that it has set up a new EGP 300 mn company to invest in fintech firms focused on the healthcare sector. The company declined to disclose which types of fintech it wants to invest in when approached for comment by Enterprise.Take two: This comes three months after Ibnsina bailed on its attempted acquisition of a 75% stake in 3elagi Tech under threat of a lawsuit by the Pharmacists’ Syndicate, which mounted a campaign against the company’s attempt to sell products directly to consumers via the 3elagi app.Ibnsina is looking beyond pharma: The new company will also look to invest in pharma- and non-pharma logistics companies, IR Manager Mohamed Shawky told us.OTHER FINTECH NEWS- Also riding the covid-fueled fintech wave: Mashreq Bank Egypt logged a 53% rise in the number of customers using its digital services since the start of the covid-19 pandemic, Executive Vice President Haitham Hammad told the local press. The bank saw its volume of digital transactions surge 373% and the number of people making payment almost double.

Tuesday, 2 March 2021

PHARMA | EnterpriseAM
Ibnsina to distribute Bayer meds in Egypt, Rameda looks to invest
Ibnsina Pharma has signed an agreement with Germany’s Bayer to import and distribute products from its OTC and Rx-based portfolios, the companies said in a joint statement (pdf) today. Bayer wants to grow in Egypt: Bayer Consumer Health wants to increase sales by 30% in 2021 after recording sales of EGP 401 mn last year, while the pharma unit is eyeing double-digit sales growth after it made EGP 722 mn in sales in 2020. Ibnsina has expansion plans of its own: The company announced plans last month to invest EGP 180 mn in 2021 to establish new distribution hubs and improve its tech capabilities, as well as expand its network of branches and up its portfolio of products. What they said: Ibnsina Chairman Mohsen Mahgoub: “This strategic partnership will allow Ibnsina Pharma to not only further strengthen its product offering, but will give patients across Egypt unprecedented access to the latest pharma treatments available.” Bayer VP + head of consumer health Middle East, Mohamed Galal: “We are feeling optimistic to sign this distribution agreement with Ibnsina Pharma, trusting the high-efficiency, and the level of services offered, to support our patients throughout Egypt. I look forward to growing our partnership.” ALSO IN THE INDUSTRY- Rameda is eyeing investments worth EGP 50-60 mn this year to develop its production lines, raise its production capacity, and upgrade its labs and water stations, CEO Amr Morsy told the local press. New products on the horizon: The company also plans to launch 8-10 new meds this year in a bid to expand its exports into Asia, Africa, and the Middle East, he noted, adding that the new offerings include covid-19 treatments, and meds for nausea and increasing blood flow to the brain. Last year, the company rolled out nine new products and acquired another three including the generic anti-inflammatory molecule last April. Growth projections: Rameda is aiming for sales growth that outperforms the market by 5-10% this year, Morsy said, adding that the company saw a 20% rise in private retail sales last year. The news comes after GSK brushed aside Rameda’s bid and another from Acdima as it sets out to sell its Egypt arm to Hikma. Correction: 22 February 2021. A previous version of this article incorrectly stated that the company saw a 20% increase in overall sales in 2020.

Monday, 22 February 2021