Profits on the rise for Palm Hills, EgyptAlum, & CSAG💰

Palm Hills starts 2025 with 148% surge in Q1 sales

Palm Hills Developments reported a 148% year-on-year (YoY) spike in Q1 2025 sales, reaching EGP 80.2 billion—more than double the EGP 32.2 billion posted in the same period of 2024 and far above the EGP 21 billion recorded in Q4.

The company said the exceptional start to the year puts it on a solid path to achieving its EGP 200 billion full-year sales target, up 33% from the year before.

The surge was fueled by strong performance across its key developments, including Badya, Palm Hills New Cairo,PX Palm Hills, and Palm Hills Alexandria. 

The company also noted that Q1 figures do not yet reflect expected North Coast sales, which are set to begin this month. The North Coast contributed EGP 90 billion in sales during 2024.

Following record sales last year

Palm Hills is riding high after a milestone year in 2024, during which it delivered its best-ever sales momentum: a staggering EGP 151 billion, or 2.5x the sales volume recorded the year before, driven by robust demand across nearly all projects.

Palm Hills ended 2024 with net profits of EGP 3.4 billion, up from EGP 1.73 billion in 2023.

EgyptAlum reports profit surge in 9M amid strategic reforms

Egypt Aluminum (EgyptAlum) posted a net profit of EGP 9.89 billion for the nine-month period from July to March 2025, marking an 89% YoY increase, driven by a dynamic pricing strategy aligned with global aluminum market trends and reinforced by effective cost controls and operational restructuring, it said in a statement to the EGX.

The specifics

Revenues climbed to EGP 32.06 billion, compared to EGP 22.46 billion in the same period of the previous fiscal year, supported by stronger export performance and enhanced trade partnerships, particularly in high-demand markets. 

Basic earnings per share rose to EGP 23.99, up from EGP 12.67 during the same period the year before.

Driving growth

Profitability was bolstered by new raw material procurement strategies that reduced input costs, and by the implementation of a strict cost control plan that restructured internal operations and improved resource efficiency, the company noted. 

Remember, the company has big export targets

The firm plans to allocate 60% of its total annual production of 300,000 tons for international markets under plans to increase its export revenues to USD 540 million during the current fiscal year, we previously noted.

And the government is working on boosting its growth

Late last year, our Industry Ministry began review of a five-year, USD 250 million plan to develop the state-owned company.  The strategy aims to retain the company’s assets while enhancing production lines, increasing output, and readying the company’s exports for compliance with the EU’s decarbonization targets.

Canal Shipping Agencies net profit jumps 66% YoY in 9M FY2024/25

Canal Shipping Agencies (CSAG) reported a 66% YoY hike in net profit, reaching EGP 945.2 million during the nine months ending March 2025, according to its latest earnings release.

Revenue also saw a solid rise, coming in at EGP 93.5 million, compared to EGP 77.1 million a year earlier.

Earnings per share climbed to EGP 3.15, up from EGP 1.90.

Behind the rise

The company’s strong performance was supported by higher investment returns from its subsidiaries, Port Said Container & Cargo Handling Co. (PSCCHC) and Damietta Container & Cargo Handling Co. (DCHC).

CSAG holds a 20.6% stake in PSCCHC and a 20.01% stake in DCHC.

Remember, the company is upping its investments

Shareholders last month approved a sharp increase to CSAG’s current investment budget, raising it from EGP 15.5 million to EGP 60.5 million. They also greenlit a EGP 30 million investment budget for FY2025/26.

Looking ahead, the company is targeting EGP 1.06 billion in pre-tax profit and EGP 140 million in operating revenue in FY2025/26.

On the macro front: inflation accelerates in April following recent fuel price hike

Egypt’s annual headline inflation – total inflation within an economy, including volatile commodities like food and energy prices — increased to 13.9% in April 2025, up from 13.6% in March, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS).

This is the first data release since Egypt hiked fuel prices by an average of 13.6% last month in line with our IMF loan requirements. 

On an annual basis, food and beverage prices rose 6% in April, with particularly sharp increases in fruit prices (62%), grains and bread (12.9%), and soft drinks and juices (22.6%).

Month-on-month

Consumer prices edged up by 1.5% in April from the previous month, but food and beverage costs eased, slipping 1.5% .

What went up

Electricity, gas, and other fuels: up 6.7% in April.

Private transport costs: up 8.6%.

Medical products and equipment: up 11.4%.

Fish and seafood: up 1.7%.

Vegetables: up 1.2%.

Grains and bread: up 0.5%.

What went down

Fruit: down 5.1% in April.

Meat and poultry: down 3.5%.

Dairy, cheese, and eggs: down 0.6%. 

Going forward

Fitch projected in a recent rating report that inflation in Egypt will reach 12.5% by the end of FY 2025, and 10.6% at the end of FY26.

The Central Bank of Egypt is targeting a 7% (±2 percentage points) inflation rate for the fourth quarter of 2026.

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