The International Company for Medical Industries (ICMI) plans to raise its stake in New Alfa for Medical Equipments Production, which is currently up to 5%. The company is also in the process of increasing its shares in Alfa Medical. Once the process of the first increase is completed, the company will review its liquidity and set a time plan for the New Alfa shares lift.
ICMI Financial Director and Head of Investors Relations Marwa Monir said that the company aims to increase its sales of solutions and needles through acquiring more shares in Alfa Medical and New Alfa Medical Equipments Production. The larger share of both companies’ production is expected to be directed for exporting to utilise the rising exchange rate of the US dollar against the Egyptian pound.
She pointed out that Alfa Medical is engaged in the production of medical solutions and needles, one of the activities complementary to the main activity of ICMI. Alfa factory is also located near ICMI in the 10th of Ramadan industrial zone.
ICMI had earlier announced the purchase of 190,000 shares of Alfa Medical, representing 3.17% and valued at EGP 380,000, raising its stake in the company to 48.5% of Alfa Medical capital.
Monir added that acquiring the new share in Alfa Medical was done through the company’s credit to ICMI, which was transferred into shares to increase ICMI’s stake.
She noted that ICMI plans to raise its shares in New Alfa, currently 5%, but is waiting to complete the first increase in Alfa. The company will then review its liquidity and make a final decision on increasing its capital in New Alfa.
Monir explained that ICMI is keen to raise its shares in New Alfa to take advantage of investment in New Alfa’s needle production. New Alfa also has a land plot in the 10th of Ramadan that could be used to add new activities or expand the current factory.
New Alfa operates in the production of medical syringes and solutions.
ICMI’s results in the first quarter of this year indicated a net profit of EGP 101,000, compared to EGP 78,430 in the same period last year, which is a growth of 29.5%.
Monir said that the growth was a result of increasing sales through activating commercial activity by marketing medical products of other companies.
ICMI has recently added commercial activity and cancelled imports and agencies’ activities at the request of the General Authority for Investment and Free Zones (GAFI), which expressed concerns about the presence of foreign shareholders in the structure of the company being less than 0.5%. This emerged after the company’s last capital increase on the Egyptian Exchange.
The company’s total sales in the first quarter boosted to EGP 1.4m, versus EGP 813,000 in the same period of 2014. Costs registered EGP 1.2m, compared to EGP 583,000.
Monir said her company applied to supply General Authority for Health Insurance with medical supplies.
ICMI revenues climbed by 28% in 2015, achieving a net profit of EGP 341,000 versus EGP 266,000 in 2014.
ICMI administers and operates a plant for the production and packaging of sutures, needles, and other medical supplies. The company’s capital stands at EGP 12m, distributed among 12m shares at EGP 1 per share.