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Ezz Steel considering cost reductions to boost financial and market share-2018 China (Guangzhou) Int¡¯l Bearing and Equipment Exhibition
12/21/2017 Bearing and expo- bearing exhibition |
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Daily News Egypt reported that Ezz Steel is considering cost reductions in order to boost its financials and increase its market share amid fierce competition. Mr Kamal Galal, investor relations manager at Ezz Steel said that ¡°We are currently working on plans to reduce costs to boost the company¡¯s financial results and at the same time maintain the quality we introduce to our customers.¡±
He explained that ¡°Our sales are on the rise. In the past nine months we almost doubled our sales when compared to the same period during 2016.¡±
According to company financial results, seen by Daily News Egypt, Ezz Steel¡¯s consolidated sales grew 97% in the first nine months (9M) of the year, standing at EGP 29.4 billion versus EGP 14.9 billionn in the corresponding period of 2016.
Third quarter (Q3) net sales further improved, growing 17% over Q2 2017.
Mr Gala stressed that ¡°The company is also benefiting from a surge in product prices.¡±
Prices increased significantly in the first nine months of 2017 due to the steep devaluation of the Egyptian pound.
Long steel prices were up 83% and 126% in the local and export markets, respectively. Flat steel prices increased by 120% in the local market and 160% in the export market in 9M 2017, compared to the prior year-period.
He confirmed that ¡°That could explain why we are on track to gain more customers amid fierce competition in the market.¡± He added that ¡°Reducing costs is a priority at the current stage.¡±
Consolidated cost of goods sold for 9M 2017 represented 91% of sales.
The company said in its financial report that ¡°This was largely due to low capacity utilisation of our plants during that period. At 9%, the 9M 2017 gross profit margin was slightly lower than the 10% recorded in 9M 2016.¡±
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(Guangzhou) Int¡¯l Bearing and Equipment Exhibition
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