Upper Egypt Mills records US$1.1M quarterly profit as sector margins tighten

EGYPT – Upper Egypt Mills Company has reported a first-quarter consolidated net profit of EGP 52.31 million (US$1.1 million), down from EGP 58.27 million (US$1.23 million) posted a year earlier, underscoring continued margin pressure across Egypt’s milling sector.

The company’s results for fiscal year 2025/2026 also reflected weaker top-line performance.

Consolidated revenues declined to EGP 529.97 million (US$11.1 million), compared with EGP 619.65 million (US$13 million) during the same quarter in the previous fiscal year.

The figures highlight a contraction in earnings as operating costs escalate faster than demand growth, particularly within Egypt’s grains value chain.

Further signalling varied operating performance in the sector, the company reported an increase in standalone annual earnings despite earlier pressure in consolidated results.

According to a filing with the Egyptian Exchange, the company achieved an unaudited standalone net profit of EGP 222.232 million (US$4.67 million) for the fiscal year ended 30 June 2025, up from EGP 185.687 million (US$3.91 million) in the previous year.

Annual revenue reached EGP 1.54 billion (US$32.39 million), indicating stable operational continuity despite cost challenges.

However, the nine-month consolidated view shows strain. For the period from 1 July 2024 to 31 March 2025, UEFM posted consolidated net profit of EGP 183.27 million (US$3.85 million), down from EGP 197.71 million (US$4.16 million) over the same period a year earlier.

The dip suggests cost burdens or fluctuating demand pressures affected subsidiary operations even as standalone performance improved.

As one of the world’s leading wheat importers, Egypt remains exposed to international price volatility and currency fluctuations.

According to Hesham Soliman, MENA market analyst, Egypt imported 1,003,652 MT of wheat in November 2025, rising from 781,836 MT in November 2024.

Soliman notes that 11.86 million MT were imported between January and November 2025, averaging about 1.08 million MT monthly, compared with 13.79 million MT in the same period of 2024.

Russia accounted for 59% of 2025 wheat supplies, down from 75% in 2024, while Ukraine’s share rose from 13.7% to 28.8% over the same period.

Local market prices, he observes, remain elevated, with Russian 12.5% protein wheat at US$244 per MT and replacement cost standing at US$248, while 11.5% protein wheat trades at US$240 against a US$244 replacement cost. Expected wheat imports for full-year 2025 stand at 12.5–13 million MT.

Cost volatility linked to such import trends has intensified competition among processors, particularly as subsidy reform prioritises state-aligned millers.

These dynamics have limited the ability of private players to fully pass rising operational costs to the consumer.

Meanwhile, inflation has encouraged households to adjust purchasing behaviour away from premium flour segments, reducing upside for commercial millers.

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