Thursday 23 Jan
Delta Sugar Company announced a 21% year-on-year decline in its net profit for 2024, reaching 1.26 billion Egyptian pounds compared to 1.59 billion pounds in 2023.
The company reported a significant decline in net profit for the full year 2024, reaching 4.7 billion Egyptian pounds, a substantial drop from the 7.02 billion Egyptian pounds achieved in 2023.
The company attributed this
decline primarily to challenging market conditions. Sales of sugar products
were hindered from the outset of the production season, resulting in a
liquidity crunch, increased overdrafts, and consequently, higher interest
expenses.
Furthermore, decreased production
volumes and lower average selling prices for by-products such as beet pulp and
molasses compared to the previous year also contributed to the profit decline.
It's worth noting that Delta
Sugar recorded a net profit of 1.15 billion Egyptian pounds during the first
nine months of 2024, down from 1.4 billion Egyptian pounds in the same period
of 2023.
Revenues also declined
significantly during this period, reaching 2.31 billion Egyptian pounds
compared to 5.56 billion Egyptian pounds in the same period of the previous
year.
The company attributed this decline in profits to a combination of factors: rising production input costs, reduced sugar sales volumes, and increased interest payable on loans.
