Egypt’s state silos company sees 82 percent profit rise
Egypt’s General Silos and Storage Company (GSSC) has posted an 82 percent rise in its net profits for the nine-month period which ended March 31, 2002, as compared to the corresponding period the previous year, according to the CASE disclosure department.
The company’s unaudited net profit totaled 19.94 million Egyptian pounds ($4.3 million) between July 2001 and March-end 2002, compared to EP10.96 million for the same period in the previous financial year.
GSSC’s sales reached EP106.14 million, rising 24 percent over last year. The cost of goods sold (COGS) registered a 22 percent increase, at EP84.92 million. GSSC’s gross profit climbed 30 percent to a total of EP21.22 million.
GSSC, a parastatal entity under the Egyptian Ministry of Supply, is responsible for Egypt’s import, storage, protection and distribution of imported cereal grains—mainly wheat and wheat flour. It has modern grain silos, located in Cairo, Alexandria, Damietta and Safaga.
Egyptian purchases of foreign wheat have recently been partially privatized, with nearly half of Egypt’s seven million ton wheat imports and two million-ton flour shipments, handed over to the private sector. Following the introduction competition in the sector, GSSC was reported to be facing a financial crisis.
The company’s profits dropped from EP70 million in 1997, to EP40 million in 1998, EP35 million in 1999 and EP24 million in 2000, according to GSSC official Mostafa Samman, interviewed by the Al-Wafd newspaper earlier this year.
The state-owned Holding Company for Food Industries is scheduled to hold a general assembly to approve GSSC’s budget FY02/03 for, on May 27, 2002. — (menareport.com)
© 2002 Mena Report (www.menareport.com)