Al-Mawar Holding Records 13% Revenue Growth in the First Half of 2026, with a 37% Increase in the Group’s Share of Net Profits from the “Big Five” Subsidiaries

“Al Mawar Holding” during the first half:

Valmore Holding Group (listed as VLMR.CA and VLMRA.CA on the Egyptian Exchange, and VALMORE.KW on the Kuwait Stock Exchange), a leading investment company in the Middle East, North Africa, and Europe, announced its consolidated financial and operational results for the fiscal period ending June 30, 2026.

Consolidated revenues reached $392 million during the first half of 2026, representing a 13% growth compared to the same period last year, while gross profit amounted to $143 million, reflecting an 18.1% increase over the same period. Operating profit before tax, interest, depreciation, and amortization stood at $166 million, with an operating profit margin of 42%. This contributed to the company achieving net profits for the current six-month period of $87.5 million, resulting in a share of $70.3 million attributable to the parent company’s shareholders.

Individually, for the second quarter, revenues reached $226 million, marking a 25.2% growth. Gross profit realized was $84 million, up 29% compared to the comparable period. Operating profit before tax, interest, depreciation, and amortization totaled $86.5 million. The company recorded a net profit for the second quarter of $46 million, with $36.1 million attributable to the parent company’s shareholders. The comparative period from 2025 included non-recurring profits of $44.8 million resulting from the divestment of certain investments, as well as profits from discontinued operations related to Delta Insurance, which was sold. Excluding these non-recurring items from the comparative net profit, as well as excluding non-recurring profits of $3.42 million during the current period, the parent company shareholders’ share of the current period’s profits would have grown by 46.7% compared to the first half of last year.

Regarding the results of the Group’s largest subsidiaries—Alexandria Fertilizers Company, Spraya Egypt, NAT Energy, Kahraba, and North Sinai Marine—their combined revenues increased by 26% annually to reach $379 million during the first half of 2026, and rose by 55.2% annually to record $218 million during the second quarter individually. It is worth noting that dollar-denominated revenues accounted for 57% of the Group’s total revenues during the first half of 2026. On this basis, the Group’s share of the net profits of these five companies increased by 36.9% annually to reach $104 million during the first half of the current year, reflecting the strong financial and operational performance of the Group’s various investments.

Commenting on the Group’s performance, Louai Jassem Al-Kharafi, Chairman of the Board of Directors of Valmore Holding, stated that the first-half results serve as tangible confirmation of the soundness of the Group’s new strategic direction, which involves building a diversified investment portfolio capable of maximizing positive returns across different economic cycles. He noted that the strong financial and operational performance amidst a challenging regional climate embodies the resilience this strategy was designed to establish. Al-Kharafi added that this strategy is based on a clear and straightforward structure, with Alexandria Fertilizers and Spraya Egypt contributing approximately 70% of the Group’s total revenues during the first half of 2026. Both companies possess a solid export base and significant capacity to generate dollar-denominated revenues. Alongside them are the Group’s investments supported by long-term concession agreements in natural gas distribution, electricity generation and distribution, and natural gas exploration and production activities, which collectively contributed 27% of the Group’s revenues during the same period. He pointed out that Icom, the Group’s newest investment in Saudi Arabia, combines both characteristics by providing dollar-denominated income and long-term revenue structure stability, an outcome the Group also aims to achieve with the Indolis project upon its commissioning.

Al-Kharafi clarified that the strategic balance among the Group’s investments was a key support for the Group’s performance during the first half of the year. This same balance underpins the Group’s capital management approach, ensuring capital is directed where it yields the best long-term returns for shareholders. He emphasized that this discipline has allowed the Group to continue steadily expanding its international footprint in Saudi Arabia and the United Kingdom without slowing down, despite the challenges the region has faced since the beginning of the year.

For his part, John Rock, Managing Director of Valmore Holding Group, stated that first-half events have reinforced the Group’s conviction in the robustness of its strategic pillars and their impact on business results, as evidenced by the 36.9% annual increase in the Group’s share of net profits from the “Big Five” companies during the first half of 2026. He explained that the 22% annual decline in the parent company’s share of net profit for the period was primarily due to the comparative period from last year containing non-recurring gains from the divestment of certain non-core assets, and that the operational performance of the subsidiaries is the most accurate indicator for evaluating the Group’s performance during the reporting period.

He added that the Group’s performance in the second quarter demonstrated operational readiness and efficiency across its investments. Alexandria Fertilizers successfully capitalized on the surge in urea export prices thanks to stable energy supplies, enabling the plant to operate at full capacity during the second quarter. Meanwhile, the strong recovery in Spraya Egypt’s results followed the strategic decision to maximize profit margins and diversify the export mix, despite ongoing restrictions on exports to certain regional markets.