Coral Growth Investments Limited announced consolidated earnings results for the third quarter ended 30 September 2015. For the quarter, the company reported revenues were EGP 1,062,946,000 against EGP 1,220,443,000 for the same period a year ago. This was due to several factors: a sharp slowdown in regional markets and Egypt; structural industry-wide overcapacity leading to increased price competition; energy price increases raised costs by 20% leading to weaker demand primarily in Egypt; local market weakness was compounded by the Ramadan and Eid holidays impacting demand and limiting trading days in Egypt and the Middle East.

Net operating profit was EGP 71,071,000 against EGP 194,578,000 for the same period a year ago. EBITDA was EGP 146,695,000 against EGP 269,997,000 for the same period a year ago. This was a result of the following: the costs of goods sold (COGS)/sales increased from 72.3% in third quarter of 2014 to 78.7% in third quarter of 2015 due to the sharp energy cost increases implemented in July 2014 compounded by lower production and diseconomies of scale on weaker sales; selling, general and administrative (SG&A) expenses, increased in absolute terms, by 7.7% from EGP 145.4 million in third quarter of 2014 to EGP 156.7 million in third quarter of 2015, hence driving up SG&A /sales from 11.9% to 14.7% in third quarter of 2015.

Net profit before tax was EGP 21,870,000 against EGP 136,561,000 for the same period a year ago. Net profit after tax after min. interest was EGP 20,355,000 against EGP 114,144,000 for the same period a year ago.