Qalaa Holdings has succeeded in reducing its losses to EGP 59.6m, reducing losses in the third quarter (Q3) of 2014 by 67% compared to the same period last year. The company said in a statement issued on Sunday that it seeks to shift to profitability by 2016, after the losses incurred in the past years. The company hopes to reduce its debts to $260m by the end of 2014, down from $300m at the end of 2013. Qalaa is one of the largest investment companies in Egypt, with assets currently amounting to $9.5bn. This includes dozens of companies located mainly in Egypt, and East and North Africa. The company is included in the main index of the Egypt Stock Exchange Q3 revenues increased to 11% on a quarterly basis to reach EGP 1.7bn. Gross operating profit – before taxes, interest, depreciation and amortisation – recorded EGP 257.9m, up 39% over the same period last year. "The cement and construction sector topped the consolidated revenues of the company during Q3 as its contribution stood at 40%, followed by the energy sector at 29%", added the statement. Co-founder and Managing Director of Qalaa Hisham El-Khazindar said that the company made a profit in Q3 amounting to EGP 85m from revenues relating to the sale of "Sphinx" company. The latter had been affiliated to "Glassworks" company, and the sale came as part of an exit programme of non-major projects belonging to the company. El-Khazindar stated that Qalaa will continue to work on reducing general and administrative expenses. He added that the improvement of economic and market conditions might lead the company to increase spending in order to achieve the maximum benefit from new investment opportunities after successive years of austerity.
