El Sewedy Electric's General Assembly, in its recent meeting, approved a cash dividend for shareholders of 1.85 EGP per share. This decision comes in light of the positive financial results achieved by the company during the past year.
The total distributable profits, which include profits carried over from the previous year, reached approximately 11.69 billion EGP. The assembly also ratified the Board of Directors' report on the company's activities and the independent and consolidated financial statements for the fiscal year ending on December 31, 2025.
Event Details
The General Assembly decided to retain approximately 7.3 billion EGP as retained earnings for the next year, reflecting the company's strategy to strengthen its capital base. Additionally, the assembly approved the leasing of two administrative buildings, each with an area of 5000 square meters, located in the “District Five” area of New Cairo, with a maximum monthly rent of 25 USD per square meter.
Furthermore, the assembly approved a contract for distributing products of El Sewedy Electric's subsidiaries in the local market through the sales points of El Sewedy for Electrical Tools and Cables, for a duration of 5 years and a value not exceeding 500 million USD.
Background & Context
These decisions come at a time when El Sewedy Electric is witnessing significant growth in its profits, with the company's profits increasing by 1.85% over the past year, reaching 19.2 billion EGP compared to a profit of 18.83 billion EGP in 2024. The company's revenues also rose to 281 billion EGP, reflecting the success of its expansion strategies in the market.
In a related context, the General Authority for Financial Supervision approved the publication of the disclosure report regarding the capital reduction through the cancellation of incentive shares, which includes a reduction of the issued and paid-in capital from 2.14 billion EGP to 2.139 billion EGP.
Impact & Consequences
This decision is considered a strategic step aimed at improving capital efficiency and enhancing the company's ability to expand in the future. The cancellation of 1.42 million shares from the “incentive and motivation system” reflects the company's commitment to financial transparency and effective resource management.
El Sewedy Electric aims to strengthen its presence in foreign markets, having announced the signing of new contracts with companies in countries such as Angola and Kuwait, contributing to boosting its revenues and increasing its competitiveness in the regional and international markets.
Regional Significance
El Sewedy Electric is one of the leading companies in the energy and electrical cables sector in the region, contributing to supporting the Egyptian economy by providing job opportunities and enhancing investments. Its success in achieving sustainable profits reflects the strength of the industrial sector in Egypt.
These developments come at a time when many Arab companies are seeking to enhance their investments in renewable energy and infrastructure, reflecting the general trend towards achieving sustainable development in the region.