North Cairo Flour Mills sees 42% profit growth in Q1, despite revenue dip

EGYPT – North Cairo Flour Mills, a subsidiary of Egypt’s state-owned Holding Company for Food Industries, reported a 42.3% increase in net profits for the first quarter of the 2024/2025 fiscal year.

The company’s net profit after tax reached EGP 10.409 million (US$211,350), up from EGP 7.316 million (US$148,545) during the same period last year.

This surge underscores North Cairo Mills’ resilience in the face of a challenging economic environment. The Egyptian food processing sector is navigating both domestic inflation and global supply chain issues.

However, despite the impressive profit increase, North Cairo Flour Mills reported a slight dip in revenue. Total revenues for Q1 declined marginally by 0.5%, landing at EGP 297.794 million (US$6M) compared to EGP 299.242 million (US$6.1M) in the same period last year.

This revenue dip can be attributed to fluctuating domestic demand for flour products and operational adjustments to manage rising production costs. The company’s emphasis on optimizing expenses and maintaining robust operational efficiency has helped sustain profit growth amid these pressures.

North Cairo Flour Mills, alongside similar state-owned entities, plays a vital role in Egypt’s staple foods supply chain.

The company specializes in producing a wide array of flour products essential to the Egyptian market, such as flour for subsidized bread production and products for industrial and retail clients.

The company’s performance is part of a broader trend among Egypt’s publicly traded food processing companies, which have managed to post profit increases despite economic headwinds, including currency devaluation and rising costs of imported raw materials​

This quarter’s financial results mark a continued positive trend for North Cairo Flour Mills, which also recorded a 12.6% year-on-year profit increase at the close of FY 2023/2024, fueled by strategic cost controls and targeted investment in modernizing production facilities.

The company’s positive financial performance highlights the food sector’s crucial position within Egypt’s economy, particularly as the nation prioritizes food security and inflation management amid global market volatility​.

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