Cairo – Mubasher: Abu Qir Fertilizers achieved net profits of EGP 686.55 million in the first quarter (Q1) of fiscal year 2020/2021, down by 8.6% year-on-year (YoY) from EGP 751.6 million.
The company generated EGP 1.74 billion in sales in the July-September period from EGP 1.98 billion in the corresponding period a year earlier, according to a bourse disclosure on Thursday.
The profit drop was attributed to several reasons, mainly the fall in the average selling prices locally and internationally by 11.5% due to the coronavirus (COVID-19) pandemic as well as the depreciation of the US dollar against the Egyptian pound by 4% which led to decreasing the company’s revenue from exports which represent 50% of its total production.
In addition, the interest rate cut by a combined 350 basis points also had a negative impact on the company’s return on cash investments.
In FY19/20, the company recorded net profits of EGP 2.69 billion, down from EGP 3.16 billion a year earlier.
