Lecico Releases Annual Financial Results For 2023
Egypt: Lecico has released its annual financial results, showcasing significant growth and improvements across various metrics. Overall, sales grew by 48% to reach LE 4,842.9 million (USD 1.03 Billion), compared to LE 3,273.8 million (USD 701 million) in 2022. This increase was achieved despite a drop in volumes, as strong price increases and the impact of devaluation drove up average prices. Average selling prices rose by 70%, contributing to this impressive growth.
Gross profit saw an even more substantial increase, growing by 173% to reach LE 1,634.1 million (USD 350 million), compared to LE 598.6 million (USD 128 million) in 2022. Consequently, the company’s gross profit margin improved by 16 percentage points, reaching 34%, up from 18% the previous year. Operating profit also showed a remarkable turnaround, reaching LE 941.1 million (USD 201 million) with a margin of 19%, compared to a loss in 2022. Net profit similarly improved, reaching LE 446.3 million (USD 95.6 million) with a margin of 9%, contrasting with the losses incurred in the previous year.
The year 2023 saw growth in sales across all regions. Lecico gained market share in the UK, driven by increasing contract sales and a strong trade offer. Sales in the UK accounted for 22% of the company's revenues. In France, sales value grew by 201%, with volumes increasing by 54% to 524,000 pieces from 340,000 in 2022. Prices in France rose by 95% as Lecico was forced to increase prices to offset cost inflation. Overall, the sales value rose by 34%, driven by growth in average prices, despite a 14% drop in sanitary ware volumes and a 16% decline in tile volumes. Sanitary ware prices increased by 84%, while tile prices rose by 48%. Egypt remained a significant market, accounting for 40% of revenues.
Sales to South Africa increased by 20%, despite a strategic move away from entry-level products. Volumes in South Africa were down by 21% to 183,000 pieces from 230,000 in 2022, but prices rose by 52%, making South Africa account for 4% of revenues. However, overall sanitary ware sales volume decreased by 14% to 4.2 million pieces, down by 680,692 pieces. Egyptian volumes decreased by 20%, down by 267,552 pieces, while export volumes decreased by 12%, down by 415,416 pieces. Sales in Lebanon, however, increased by 7%, up by 2,276 pieces. Exports increased to 73% of total sales volume, compared to 71% in 2022.
Average sanitary ware prices increased by 84% year-on-year to LE 762.6 (USD 16) per piece, up from LE 414.5 (USD 8.87) in 2022. This was due to price increases and the devaluation of the Egyptian Pound. The company also significantly improved its scrap and repair rates during the year, which helped offset some of the inflationary pressures caused by reduced production and high inflation in Egypt.
Source: LECICO