Ah Hussain
The group reaps the fruits of the expansion of its activities and scope of business and succeeds in achieving strong revenue growth during the year
accompanied by an increase in net profit despite the continuous operational expansions
Cairo, March 9 2022: Today, E-Finance for Financial and Digital Investments SAE (Egyptian Stock Exchange Code: EFIH.CA), the leading company, announced today that In the development, management and operation of technological networks for digital transactions and the first Fin-tech company in the modern sense in Egypt, on its financial and operational results for the fiscal year period ending on 476 December
, as revenues increased at an annual rate 59.3% to reach 1,963.3 million pounds within a year 2021, thanks to the strong contribution of “e-finance” and “e-cards” technology company. The net profit also increased at an annual rate of 9% 48. To record 529. 7 million pounds during a year 2021, compared to 2022 . 9 million pounds within a year 2020. During the last quarter of a year 2020 alone, revenues increased at an annual rate of 177 .6% to record 663. 7 million pounds.
Income statement summary
(million pounds)
fiscal year 2021
Fiscal Year 2022
Change
Total Consolidated Revenues
1,963.3
1,921. .3
59.3%
cost of revenue
1,45.5
534.8
177.4%*
Gross profit
922. 9
595. 6
59.0%
Gross Profit Margin
47.0%
48.3%
-1.3 percentage points *
Operating EBITDA for depreciation and amortization
877.3
476.2
57.3%
EBITDA Margin
040. 2%
38.6%
-0.5 percentage point *
EBITDA
763.7
476.2
60.4%
Adjusted EBITDA margin
040.9 %
37.6%
0.3percentage point*
net profit
476.7
2021 .9
476 .9%
Net Profit Margin
26. 5%
595 .7%
-2.2 percentage points *
Adjusted net profit
595.2
353.9
57.9%
Adjusted Net Profit Margin
27.2%
595 .7%
– 1.5 points Percentage
The change in profit margins and the rise in cost of revenue reflects the contribution to revenue from supplying equipment related to the Egypt Railways project, as these devices are characterized by low profit margins. It also reflects the costs of employing human resources in the newly established subsidiaries. The adjusted results represent the profitability results after excluding the impact of the non-recurring expenses related to the initial public offering amounting to 14. 4 million pounds within a year 2021, in line with Egyptian accounting standards.
The strong growth in the group’s revenues during the year comes 2021, in light of the increase in the revenues of all its subsidiaries, led by “E-Finance Operating Technology” company, which acquired the lion’s share of total revenue collection; Where it monitored revenue growth at an annual rate 29.8% to record 1,529 million pounds within a year 2021, or what Equivalent to 340 9% of the group’s total revenues during the year, noting that it contributed a percentage of 59 1% in the growth rate of the group’s revenues during the same period. This comes thanks to the growth in the revenues of cloud computing services at an annual rate 59.3 during
The revenues of the smart card operating technology company “e-Cards” also increased at an annual rate 963 % to record 340. 1 million pounds during a year 2021, compared to 040.4 million pounds within a year 2022, to contribute to this percentage 232 4% of the group’s total revenues during the year, and a percentage of 534. 1% in the growth rate of the group’s revenues during the same period. For its part, “Khalis” digital payment services company succeeded in concluding its second operating year as an independent subsidiary of the group with strong revenue growth at an annual rate 183.6% to be recorded 59.9 million pounds within a year
. .
The gross profit increased at an annual rate 59.0% to record 963.9 million pounds, and this was accompanied by the stability of the gross profit margin to record 963. .0% within a year 2021, without noticeable annual change. This comes thanks to the strong expansion of the group’s operational activities and the resulting significant growth in revenues during the year, which contributed to reducing the impact of the increase in cost of revenues at an annual rate 77.4% during the same period. The net profit increased at an annual rate of 46.9% to record 534. 7 million pounds during a year 2021, while the net profit margin was 31. 5% Within a year 2021 versus 28.7% during the previous year. and during the last quarter of the year
alone; Gross profit and operating profit before tax, interest, depreciation and amortization and net profit increased at annual rates 340.5% and 60 6% and 921 2%, respectively, thanks to the group’s success in reaping the benefits of intensifying operations
The Group reported an adjusted net profit (excluding the impact of non-recurring IPO related expenses of 963 . 4 million pounds within a year 2021, in line with Egyptian accounting standards) with a value of 534. 2 million pounds, an annual growth rate of 55.9%, versus 2021. . 9 million pounds within a year 2020. The adjusted net profit margin was 29.2% during a year 2021.
In this context, Ibrahim Sarhan, Chairman of the Board of Directors of the e-finance group for financial and digital investments, expressed his pride Strong with the exceptional achievements and remarkable successes achieved by the “e-Finance” group during the year 2021; crowned with record financial and operational performance; It clearly embodies the unique value and leading position of its activities and business, and paves the way for it to continue its remarkable start towards a new stage of growth that began its journey as a listed company on the Egyptian Stock Exchange. The group’s revenues increased at an annual rate of 340% to reach 1,
. 3 million pounds during a year 2021, thanks to the remarkable growth in the revenues of all companies and affiliated investments. This reflects the honorable performance; The positive returns of the various activities and businesses of the group, whether existing or those that we succeeded in launching recently within the framework of structural transformations and the business development model that we adopt.
Sarhan added that the successes of the e-finance group of companies in activating national projects in partnership With the Egyptian government, laying the foundations of digital transformation in its comprehensive concept, which includes simplifying and automating procedures in a manner that integrates with the modernization of the legislative structure, has contributed to maximizing efforts to stimulate the economy, strengthening the governance of the revenue and expenditure system, maintaining a safe economic path, achieving economic goals and meeting development needs. Sarhan stressed that these successes with the Egyptian government; This led to the government’s confidence in choosing the company to offer on the stock exchange, to achieve unprecedented success, which was praised by the Prime Minister, the ministers, and all the authorities specialized in the fields of offering in the stock exchange.
Sarhan pointed out that the performance The strengths of the e-finance group was appreciated and praised by the Minister of Finance, who described the group It is the strong, flexible and rapid arm of the state in digital transformation, and that what the e-finance group has accomplished is the fruit of the success of fifteen years of continuous work and real effort, which contributed to improving the efficiency and effectiveness of government performance, improving the quality of services provided to citizens, and enhancing governance and transparency through the optimal use of advanced technology on the Toward consistent with the global trend in the transition from a paper work environment to technological systems. We have a strong public financial management system by integrating, controlling and computerizing all government financial operations, starting with the preparation, implementation and control of the state’s general budget, which helps to achieve financial discipline and use state resources efficiently and effectively.
Sarhan explained that the administration is looking forward to the future by accelerating the pace of the planned investments to upgrade the technological infrastructure of the group, to maintain its unique leadership position in the Egyptian market and to achieve the strategic goals that it adopts, pointing to the strength of the financial position of the group thanks to the arrival of cash and the like to 2,877 approximately one million pounds, which confirms its complete readiness to implement its investment plans to the fullest extent, which aims to develop all of the group’s business and activities, in a way that contributes to maximizing the return and the positive return for the shareholders in a sustainable manner.
Sarhan pointed out that the investment plans targeted by the group focus on two main axes, the first is consolidating the group’s position and enhancing its ability to seize new growth opportunities offered by the financial services sector in the Egyptian market following the dramatic transformations. The difficulties it has experienced during the last period, most notably its adoption of innovative digital solutions similar to international markets. As for the second axis, it crystallizes in providing the group with enormous competitive elements, which make it the holder of absolute influence and leadership in the fields and sectors in which it operates, so that our investment plans become so; A real nucleus for the continuous development of the group’s capabilities and the permanent improvement of its performance year after year.
Sarhan went on to move forward on a parallel path towards achieving the best model of integration between all its activities and businesses, and employing the joint technological structure between Affiliate companies in order to promote the various solutions and services provided, especially since the company’s various activities are characterized by the ability to achieve integration and integration between them. for example; E-commerce solutions, billing collection and collection, smart card solutions and a host of other services that we excel at can be combined into an integrated package that is unprecedented in the entire digital transaction market.
Sarhan expressed the group’s aspiration as well To expand our customer base to include new segments and categories beyond government agencies and banking institutions, such as retailers and private sector companies, noting that many subsidiaries have already launched in this direction. On the other hand, the group will continue its endeavors to expand its share in the digital banking sector. To this end, it aims to inject additional investments to enhance the infrastructure of cloud computing services that are unique to it, as well as to create more services that integrate with cloud computing services and contribute to the development of its customer base.
He emphasized Sarhan said that the group has a well-established infrastructure for cloud computing services, which qualifies it well to achieve leadership in the financial services sector in Egypt, through its package of services and innovative solutions provided. He pointed out that the administration is currently exploring appropriate opportunities to achieve this desired leadership, including opportunities to expand the group’s activities to the non-banking financial services sector, which has witnessed rapid growth in the Egyptian market over recent years, especially that the integrated solutions and services provided by its platforms will be valuable Added to the activities and operations of that sector. Sarhan concluded that the group has the ability to employ the advanced technological infrastructure of cloud computing services that is unique to it, in creating an integrated package of services; It results in providing corporate and individual clients with a unique experience in the non-banking financial services sector.
It is worth mentioning that the Board of Directors proposed distributing cash dividends to shareholders for the fiscal year 2021 with a value of 0. pounds per share, equivalent to 183.7 million pounds, with an annual increase of 50%, Which represents a return on stock of 0.55 % based on the closing price in March 8 2021.
To view the full financial results report and obtain an electronic copy of the company’s consolidated and independent financial statements for the fiscal year period ending on 31 Dec 2021, please visit the website via the following link: investors.efinanceinvestment.com
