Category
🗞
NewsTranscript
00:00 In business results, the profits of Oporland companies for food industry after the division of minority rights by about 1.8% in the previous year
00:08 recorded more than 470,600,000 pounds in comparison to 462,300,000 pounds in 2022.
00:17 Sales jumped by 57.9% last year to reach 7.2 billion pounds compared to 4.5 billion pounds in 2022.
00:28 We will hear more about these results from Mr. Ashraf Hamed, Deputy Chairman of the Board of Directors and Executive President of Oporland.
00:39 Welcome Mr. Ashraf and thank you for being here.
00:43 Let's start by talking about these results and the jump by about 1.9%.
00:48 What are the most important products that contributed to this increase in profits?
00:52 First of all, I would like to welcome you and thank you for the invitation.
00:58 In fact, if we talk about 2023, there were very big challenges and difficulties,
01:06 and we all know and see them, especially in the management of currency and dollars.
01:12 We found that a very large part of food industries, especially dairy, needs to produce and export,
01:23 and this can reach 40 to 50% of raw materials.
01:27 So in fact, this was the biggest challenge in obtaining and managing raw materials.
01:33 The main goal was to maintain the size of the company, for Oporland, and to maintain the market share and to provide the product in a permanent and continuous way for consumers,
01:46 regardless of the levels of profit, which was not the goal.
01:50 Especially, there were very fast and continuous increases in costs,
01:55 and this was accompanied by continuous increases in prices, which increased by about 50% to 55% in 2022.
02:04 This was a very big challenge.
02:07 So in fact, we want to talk about the Egyptian market, which is a consumer market in the first place.
02:12 For Oporland, it has a great power in the local market, so it had to be in many ways.
02:20 Providing raw materials was the main goal, maintaining the market share,
02:25 in addition to some of the developments that our main goal was in some of the products that are focused on,
02:34 such as processed cheese or cooked cheese, because it had great opportunities that the company created in exporting,
02:41 and this helped the company a lot in growing in addition to providing the dollar currency to get the raw materials.
02:50 But you, unlike other companies, reduced prices by 15% to 30%, Mr. Ashraf.
02:56 Was this also helpful for you to maintain your market share and to accept your products?
03:04 In fact, we reduced prices during the period that we were talking about at the beginning of February,
03:14 or after the very good news for the Egyptian market,
03:18 in the idea of new deals that will harm the dollar in large numbers,
03:24 you will be able to manage the market needs from raw materials.
03:28 And based on this, we had a big decrease in the market share.
03:32 So the costs of raw materials began to decrease.
03:37 Yes, there is a balance in most companies, and most companies have high costs,
03:43 but this gave us a positive shape, we started to move and take a positive or fast step in reducing prices
03:50 from the beginning of the week that we are in.
03:54 And this is not based on real costs, we can say that it has really decreased,
04:00 but it is a very big positive look for what is coming in the Egyptian market.
04:06 The beginning was a decrease of about 5% in prices,
04:09 but I see that it will be reduced gradually,
04:14 and this year's reduction may reach, depending on the cost,
04:18 but I think it will be possible to reach 20-30% of the prices in the year 2022-2024.
04:25 You were also postponed to one of the projects until now, the Bur Farm project,
04:30 due to the increase in costs, Mr. Ashraf, where did the project reach?
04:35 Will the cost increase continue with an increase in the investment in the project later?
04:41 The truth is that we are very ready for Bur Farm as an existing main building.
04:51 The only thing we are waiting for is to get the cut for the production of dairy.
04:57 The cut will come entirely imported from abroad,
05:02 and we know that there was a big crisis in the management of needs,
05:06 so we were interested in the stage of getting the currency to handle raw materials,
05:13 and this is a major priority, so we stopped any expansion in the past period
05:19 to focus on the currency to handle raw materials as a primary stage.
05:27 In terms of efficiency, we will, God willing,
05:31 in all projects that have increases, because we need to increase production
05:36 after the products in the farms and in Bur Farm.
05:41 We are aiming to increase production,
05:44 in addition to the increase in the production of the farm,
05:49 so I expect, God willing, this year, in the second half,
05:52 all these projects will be implemented, all the projects that are postponed,
05:55 whether by adding new production capacity or running the dairy farm, God willing.
06:00 The cost of funding, Mr. Ashraf, how much did you receive and the amount of funding?
06:05 Quickly.
06:07 In terms of expansion, we need about $6 million this year
06:14 to support the expansion that Aburland is aiming for, God willing.
06:18 We wish you good luck, Mr. Ashraf Hamed,
06:21 Deputy Chairman of the Board of Directors and Executive Chairman of Aburland Food Industry.
06:25 You were with us via phone. Thank you.