By Ahmed Allam
Cairo – Mubasher: Cairo Oils and Soap Co. is seeking to turn to profits and to generate EGP 400 million sales in one year, said Chairman Ayman Korra.
The top official told Mubasher in an interview that his company is currently conducting a capital increase.
The Egyptian Exchange’s listing committee earlier approved the increase in the company’s issued capital from EGP 80 million to EGP 200 million divided into 24 million shares at EGP 5 par value plus EGP 0.01 issue costs each.
The oil and soap producer posted EGP 52.41 million net loss for the fiscal year 2014/2015, up from EGP 33.48 million logged a year earlier.
Korra indicated that the target sales after restructuring the marketing team amount to EGP 35 million monthly, at an estimated total value from EGP 400 million to EGP 420 million.
The company will focus on local sales to boost its market shares, said the chairman, adding that export sales are not major due to instability at regional markets of Libya, Syria and Iraq.
According to the chairman, the company is facing difficulty in securing hard currency to buy raw materials and necessary equipment for production.
The capital increase will go for repaying due debts, buying raw materials and equipment, as well as completing outstanding projects, said Korra.
The company’s rights issue was covered by 96.4% in the first phase, while the remaining shares were 46 times oversubscribed.
Translated by Sayed Abdel Rahman
