25% drop in Egypt Aluminium’s profit margin despite higher sales

Egypt Aluminium Company (Egyptalum) saw its profitability weaken in the first half of the 2025-26 financial year, even as turnover rose, according to unaudited figures released to the Egyptian Exchange on January 28.

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The government-owned aluminium producer posted net profit after tax of EGP 5.54 billion (USD 118.26 million)  for the six months till December 2025, down 25 per cent from EGP 7.355 billion (USD 157.06 million) reported in the same period a year earlier.

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Revenue, however, moved in the opposite direction. Sales rose 12.56 per cent year on year to EGP 21.507 billion (USD 459.27 million), compared with EGP 24.208 billion (USD 516.95 million) in the corresponding period of the previous financial year.

Egyptalum’s operations include the production, marketing and distribution of aluminium and related products, as well as the import and export of raw materials and aluminium alloys. The company is now focused on a range of investment activities spanning financial ventures and real estate.

However,  the first-half figures clearly highlight a mixed outcome because, despite stronger sales, higher earnings were never translated, potentially owing to rising raw material and energy costs pressured profit margins, first quarter’s 43 per cent slump in net profit and a slight 0.07 per cent dip in net sales and exceptionally high growth in the preceding 2024/2025 fiscal year, setting a very high benchmark for comparison.

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