Qalaa kicked off the new year with a revenue of EGP 37.2 billion in 1Q25, largely stable year-on-year as the slight year-on-year drop in ERC’s revenue offset the top-line growth witnessed across the rest of the Group’s subsidiaries during the quarter. Meanwhile, EBITDA stood at EGP 4.2 billion in 1Q25. ERC remains on track to fully repay its senior debt by early 2026. The company’s margins continue to improve, and stronger performance is expected in 4Q25. In addition, ERC is pursuing several projects and initiatives designed to further enhance and expand its margins. Meanwhile, Qalaa’s commercial registry has been updated as of 05 October 2025 to reflect the increase of the Company’s issued and paid-in capital as part of the QHRI debt capitalization process.

Key Highlights:

  • Qalaa’s consolidated revenue remained largely stable year-on-year at EGP 37.2 billion in 1Q25, as the decline in ERC’s revenue offset the top-line growth reported across the rest of the Group’s subsidiaries during the quarter. Excluding ERC, consolidated revenue rose by 24% y-o-y to EGP 3.9 billion in 1Q25. Meanwhile, recurring EBITDA contracted by 46% y-o-y to EGP 4.2 billion in 1Q25, primarily due to the decline in EBITDA reported at ERC on the back of a drop in global refining margins.
  • The Group recorded a consolidated net loss of EGP 43.0 million in 1Q25, compared to a net profit of EGP 7.2 billion in 1Q24, mainly due to the net loss reported at ERC, which is itself the result of a drop in global refining margins, as well as the continued accrual of interest expense relating to the Settlement and Restructuring agreements signed in 2024, which amounted to EGP 492 million in 1Q25.
  • It is worth noting that ERC’s margins are increasing and an improved performance is expected in 4Q25. Additionally, the company is eyeing a number of projects and initiatives aimed at enhancing and expanding margins.
  • ERC continued to operate above its rated capacity, yet refining margins remain pressured due to the cyclical nature of the business. ERC’s USD-denominated revenue contracted slightly year-on-year, largely due to the decline in product prices.
  • ERC has no outstanding receivables from EGPC, which is presently current on all its payments due to ERC.
  • In June 2025, the company made a payment of USD 157.5 million to senior lenders, consisting of USD 135 million in principal repayment, as well as USD 22.5 million in interest and fees, and the next payment is due in December 2025. Those repayments see ERC remain on track to fully settle its senior debt by 1Q26, which is almost two years ahead of schedule.
  • Qalaa’s remaining portfolio companies continued to showcase their strength and resilience across the board, with all business segments reporting revenue growth in 1Q25. Additionally, most portfolio companies achieved a net profit during the quarter.
    • The continued recovery at Al-Takamol Cement, coupled with solid growth at ASEC Engineering and ASEC Automation, supported the performance of the Group’s cement segment during the quarter.
    • Dina Farms Holding continued to deliver robust results following strong performances across all business segments at Dina Farms, as well as increased sales volumes and higher selling prices at ICDP.
    • ASCOM’s strong performance was largely driven by its two largest USD-denominated revenue generators, ACCM and GlassRock, as well as improved results at ASCOM Mining. Worth noting that the Group’s position as an import substitute and export player across the mining business continued to strengthen Qalaa’s consolidated results.
    • CCTO’s transportation and logistics business delivered strong results, largely driven by the coal storage, container depot, and stevedoring services at NRPMC.
    • TAQA Arabia delivered a strong top- and bottom-line performance on the back of solid results across the board.
  • The Group continues to focus on growing its exports and leveraging the cost advantage available to local manufacturers, with Group export proceeds reaching c.USD 17.4 million in 1Q25. Meanwhile, local foreign currency revenue stood at c.USD 674.3 million during the quarter.
  • As of 05 October 2025, Qalaa’s commercial registry has been updated to reflect the increase of the Company’s issued and paid-in capital from EGP 9.1 billion to EGP 21.1 billion divided over 4.2 billion shares, as part of the QHRI debt capitalization process. The newly-issued shares are expected to be distributed to the participants in the debt purchase in November 2025 in line with their participation percentage.
  • In 1Q25, Qalaa recorded an interest provision of EGP 246 million relating to the portion of the Senior Debt that was previously owed to Egyptian banks. This liability continues to be reflected on Qalaa’s balance sheet pending the full satisfaction of all conditions stipulated in the settlement agreement. However, this does not reflect the actual amounts currently owed to these lenders; rather, it represents the pre-settlement balances.
    • It is important to note that, upon Qalaa’s exercise of its Call Option over TAQA’s shares in accordance with the terms of the settlement agreement, all outstanding amounts, including any accrued interest, will be written off. The TAQA Call Option exercise price is expected to be lower than the outstanding amounts recorded at that time.
  • In addition, under the restructuring agreement signed in 2024 between SPVs fully owned by Qalaa and a local bank, a total of USD 44 million, together with all related accrued interest pertaining to loans owed to this bank, which as of Q1 2025 amounted to EGP 247 million, is expected to be written off following the full repayment of the amounts due to the bank in 2033.
  • Qalaa’s strategy will continue to focus on the following elements:
    • Qalaa will continue driving growth through small incremental investments in its subsidiaries, expanding cashflows, and thereby reducing its debt to cashflow ratios. Management is confident this strategy will continue to deliver the desired results.
    • Strategic plans are currently underway to initiate four IPOs over the coming two years for select high-growth subsidiaries to unlock shareholder value, enhance financial flexibility, and facilitate the valuation of Qalaa’s shares.
    • Qalaa continues to prioritize the reduction of its consolidated debt, with a targeted decrease of approximately EGP 30 billion expected in FY25 alone. This includes, but is not limited to, the repayment of USD 300 million in ERC senior debt and USD 240 million in debt owed to QHRI.
    • While cashflow bottlenecks persist across the Group, the overall liquidity position has improved significantly. Additionally, further improvements are anticipated across all major operations, especially on the back of ERC being able to distribute dividends starting 2026.

Cairo: Qalaa Holdings, a leader in energy and infrastructure (CCAP.CA on the Egyptian Exchange), released today its consolidated financial results for the three month period ending 31 March 2025. During the quarter, Qalaa’s revenue remained largely stable year-on-year at EGP 37.2 billion, with the decline in ERC’s revenue offsetting the year-on-year top-line growth reported across the rest of the Group’s subsidiaries.

In 1Q25, ERC’s USD denominated revenue inched downwards by 3% y-o-y in EGP terms to EGP 33.3 billion, largely due to the decline in product prices. Excluding ERC, Qalaa’s 1Q25 revenue grew by 24% y-o-y to EGP 3.9 billion, driven by solid results across all other subsidiaries.

On the profitability front, Qalaa’s EBITDA contracted by 46% y-o-y to EGP 4.2 billion in 1Q25, mainly as a result of the drop in EBITDA reported at ERC, which shrank by 53% y-o-y to EGP 3.3 billion, largely as a consequence of the decline in global refining margins.

Excluding ERC, Qalaa’s EBITDA grew by 26% y-o-y to EGP 902.1 million in 1Q25, driven by solid growth across most subsidiaries. ASEC Holdings’ 1Q25 EBITDA expanded by 85% y-o-y to EGP 484.5 million, largely driven by the strong recovery at Al-Takamol Cement, an increase in production volumes and favorable FX movements at ASEC Engineering, and ASEC Automation’s expansion into regional markets and the renewable energy sector.

Dina Farms Holding Company achieved an EBITDA of EGP 176.6 million in 1Q25, a 32% y-o-y decline driven by a fall in profitability at Dina Farms’ livestock division, coupled with increased selling and distribution expenses at ICDP. In 1Q25, ASCOM’s EBITDA grew by 32% y-o-y to EGP 170.0 million, primarily driven by an increase in prices for milled products and a decline in shipping costs at ACCM, coupled with higher prices and the kick-off of a new phosphate extraction project at ASCOM Mining.

EBITDA at CCTO’s transportation and logistics business rose by 44% y-o-y to EGP 120.9 million in 1Q25, largely driven by the solid operating results at NRPMC following enhancements across the company’s storage, depot, and stevedoring services. Finally, TAQA Arabia’s EBITDA grew by 56% y-o-y to EGP 487.7 million in 1Q25, fueled by broad-based growth across TAQA’s subsidiaries. TAQA Arabia is accounted for as an investment in associate using the equity method and revenues are not included in Qalaa’s consolidated revenues.

In 1Q25, Qalaa reported a consolidated net loss after minority interest of EGP 43.0 million, compared to a net income of EGP 7.2 billion in 1Q24. The decline in bottom-line profitability during the quarter was largely a result of the net loss reported at ERC as well as the continued accrual of interest expense relating to the Settlement and Restructuring agreements signed in 2024, which amounted to EGP 492 million in 1Q25. Worth noting that in 1Q24, Qalaa recorded a non-recurring one-off gain of EGP 10.0 billion associated with sale of investments and debt restructuring.

Notwithstanding the above, all of Qalaa’s subsidiaries, apart from ERC and Dina Farms Holding Company, recorded net profits during the quarter.

ERC reported a net loss of EGP 1.1 billion in 1Q25, compared to a net profit of EGP 2.1 billion in 1Q24, largely as a result of the decline in global refining margins during the quarter. ASEC Holdings achieved a net profit of EGP 695.4 million in 1Q25, compared to a net loss of EGP 481.4 million reported in 1Q24, following the company’s solid EBITDA growth, in addition to the reversal of a bank loan provision.

In 1Q25, Dina Farms Holding Company reported a net loss of EGP 8.8 million, compared to the net profit of EGP 155.6 million reported in 1Q24, mainly as a consequence of the aforementioned factors that impacted EBITDA, in addition to non-recurring capital losses and increased financing costs at Dina Farms. ASCOM achieved a net profit of EGP 38.6 million in 1Q25, compared to a net loss of EGP 25.7 million in 1Q24. Enhanced bottom-line profitability came on the back of an increase in the prices of milled products and a drop in shipping costs at ACCM, coupled with higher prices and the kick-off of a new phosphate extraction project at ASCOM Mining.

At CCTO’s transportation and logistics business, net income closed the quarter at EGP 13.5 million, compared to a net loss of EGP 0.4 million in 1Q24. Enhanced bottom-line profitability was largely driven by the solid operating results at NRPMC following enhancements across the company’s storage, depot, and stevedoring services. Finally, TAQA Arabia’s net profit expanded by 32% y-o-y to EGP 136.1 million in 1Q25, driven by solid bottom-line growth across all subsidiaries apart from TAQA Petroleum.

“Qalaa kicked off 2025 with solid results across the board, as the Group continued to showcase its strength, resilience, and agility in a dynamic macroeconomic landscape,” said Qalaa Holdings Chairman and Founder Ahmed Heikal. “Qalaa’s top-line remained largely stable year-on-year in 1Q25, with the drop in ERC’s USD-denominated revenue, following the decline in product prices and the drop in global refining margins offsetting the top-line growth seen across the rest of our subsidiaries during the quarter. It is worth highlighting that excluding ERC, the Group’s revenue expanded by 24% y-o-y.”

“Building on this promising start to the year, we will continue executing our growth strategies across our diverse platforms. I am confident that the Group can continue to leverage its resilience and agility to navigate market challenges and capitalize on improving macroeconomic conditions. In parallel, we will continue pushing ahead with our strategy of undertaking targeted, incremental investments with the aim of continuously enhancing Qalaa’s investments portfolio,” Heikal added.

On a separate note, I am pleased to announce that our debt settlement and restructuring efforts are progressing well. As of 05 October 2025, Qalaa’s commercial registry has been updated to reflect the increase of the Company’s issued and paid-in capital from EGP 9.1 billion to EGP 21.1 billion divided over 4.2 billion shares. The newly-issued shares are expected to be distributed to the debt purchase participants during November 2025 according to their participation percentage,” Heikal said.

“Finally, I would like to reiterate that the true value of Qalaa’s performing assets is masked due to holding them at their historical cost and, in some cases, adjusting for impairments, while not taking into consideration any revaluation adjustments,” Heikal concluded.

“I am proud of Qalaa’s solid start to the year,” said Hisham El-Khazindar, Qalaa Holdings Co-Founder and Managing Director. “In 1Q25, our results continued to be heavily driven by ERC’s USD-denominated revenue, which contracted slightly year-on-year following the drop in product prices and the decline in global refining margins witnessed during the quarter. Elsewhere across our portfolio, our agriculture and logistics segments continued to leverage their solid investment fundamentals to deliver strong top-line growth. Similarly, the strong year-on-year growth over the past quarter at Al-Takamol Cement, following the company’s continued impressive recovery, supported the performance of the Qalaa’s cement segment. Meanwhile, our mining business continues to generate valuable USD proceeds by serving as an import substitute and export player via our mining business, further strengthening Qalaa’s consolidated results.”

“On the debt settlement front, ERC remains on track to fully settle its senior debt ahead of schedule. On that front, the company completed a payment of USD 157.5 million to senior lenders in June 2025, and the next payment is due in December 2025. As always, we remain completely committed to reducing Qalaa’s risk levels and maintaining a healthy financial position going forward,” added El-Khazindar.

“Our performance during the first quarter of the year is a testament to our resilience and agility, enabling us to overcome market challenges and capitalize on improving macroeconomic conditions. Furthermore, the successful completion of Qalaa’s capital increase represents a major milestone, reinforcing the company’s balance sheet and providing greater financial flexibility. I look forward to additional quarters of gains, growth, and strong results across our businesses and operations,” concluded El-Khazindar.

Previous Qalaa Holdings press releases on this subject and others may be viewed online from your computer, tablet or mobile device at qalaaholdings.com/newsroom

Qalaa Holdings (CCAP.CA on the Egyptian Stock Exchange) is an African leader in energy and infrastructure. Qalaa Holdings builds responsible and sustainable businesses that add value to the economies and societies in which it does business. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in industries including Energy, Cement, Agrifoods, Transportation & Logistics, Mining and Printing & Packaging. To learn more, please visit qalaaholdings.com.

For more information, please contact
Ms. Ghada Hammouda
Chief Sustainability and Marketing Officer 
Qalaa Holdings
    ghammouda@qalaaholdings.com
Tel: +20 2 2791-4439 
Fax: +20 22 791-4448
Mobile: +20 106 662-0002
Twitter: @qalaaholdings