We are very proud to announce that we have completed one of the most successful IPOs in Egypt. The offering was 36% of the outstanding shares of which 21% were offered to cornerstone investors, 10% offered for institutional investors, and 5% offered to retail investors.
In line with revenue diversification strategy, Fawry established a new company by the name of “Fawry FMCG” which is mandated with facilitating the merchants’ purchasing from their suppliers. Fawry owns 51% of the Fawry FMCG.
Chief Executive Officer, Eng. Ashraf Sabry, commenting on the results
In the second quarter of 2019, we accelerated the Company’s growth while advancing our strategy of building a complete digital ecosystem connecting corporates, merchants, and consumers. Our omni channel platform enables consumers whether banked or unbanked to enjoy a better customer experience while fulfilling their daily needs and corporates to efficiently reach out to their clients.
We have as well delivered more solutions to SMEs connecting them to their suppliers, enabling them to have access to financial services as well as supporting them accept electronic payments and digitally engage with
Our YoY revenue growth in Banking Services of 167%, Supply Chain Solutions of 55%, and Alternative Digital Payments of 30% demonstrates high growth across all lines of business as well as delivering on our revenue diversification strategy.
We are continuing to deliver on our target KPIs and strategic objectives. Total revenues during the first half of 2019 increased to EGP 373.3 million compared to EGP 273.7 million achieving growth rate of 36.4%. Gross profit increased from EGP 124.9 million to EGP 177.7 and gross margin showed a 2% improvement reaching 48% compared to 46%.
Operating profit increased from EGP 22.9 million to EGP 39.8 million and operating margin also improved to a record 11%, compared to 8% last year, demonstrating sound operational leverage supported by platform maturity and business diversification.
Our net profit after non-controlling interest declined from EGP 25.5 million to EGP 23.7 million affected by EGP 3.6 million related to the IPO, EGP 3.6 million of non operating currency losses due to the appreciate of the Egyptian pound, and our share of losses in startup businesses of EGP 8.7 million.
Finally, we are still demonstrating our market leadership by market share and by being the first to provide the market with new solutions.
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