Egypt's Chemical Industries to report 21% decline in net profit to EGP645m

Cairo-based Chemical Industries Holding Company
(CIHC) will report this month that net profit for the financial year ending June 30, 2011 declined 20.85% from the previous year's EGP 815 million to EGP 645 million, a person with knowledge of the matter told Zawya.

Gross profit for the year ended June 30, 2011 amounted to EGP 705 million, compared to around EGP 626 million in the previous year.

CIHC is a 100% state-owned company with shareholding in 18 affiliate companies. The group operates in the chemicals, fertilizers, mining, basic materials and industrial products sectors.

In a meeting on December 22, 2011, the CIHC board headed by Mohamed Adel Al-Mouzi, Commissioner-General of the Public Business Sector Companies, approved the financial statements for the financial year ended June 30, 2011, as well as the statements and consolidated results of CIHC and its affiliates.

According to the person, several factors were responsible for the decline in net profit. Among them are: around EGP 180 million in losses incurred and staff bonuses at loss-making units, and the cost of early retirement payouts in some companies.

If these extraordinary items were not accounted for, the net profit would have been about EGP 860 million, an increase over the previous year's EGP 815 million, the person said.

CIHC contributed EGP 14.5 billion to the Public Treasury in the year ending June 30, 2011, compared to EGP 9 billion during the previous year.