Table of Contents
Key Points
- Revenue rose 17% to $260.2 million, fueled by robust international sales, higher prices, and strong non-woven segment growth.
- Net profit fell 24% as rising input costs, reduced export rebates, and weak domestic demand pressured margins and cash flow.
- The Khamis-controlled group eyes margin gains via cost cuts, R&D-led high-margin products, and export growth despite economic headwinds.
Cairo-based Oriental Weavers, the global carpet giant controlled by Egyptian businesswoman Yasmine Mohamed Khamis and her siblings, delivered solid sales but slightly weaker earnings in the first half of 2025, as currency devaluation and rising input costs squeezed margins.
According to its newly released half-year results, revenue for the first half of the year ended June 30 climbed 17 percent year-on-year to EGP12.57 billion ($260.21 million) from EGP10.78 billion ($223.25 million) in H1 2024, driven by higher volume in international markets.
Net profit fell 24 percent to EGP1.12 billion ($23.12 million) from EGP1.47 billion ($30.47 million), even as international sales climbed on higher average selling prices and strong non-woven segment growth. The decline in profitability reflects the impact of rising costs, leading to an 80 percent drop in export rebates, soft domestic demand, and increased net debt.
Strong exports, pricing lift Oriental Weavers’ global revenue
Export revenue jumped 44 percent to EGP4.2 billion ($86.95 million), driven by a 3 percent volume rise and favorable currency translation.
While hard-currency prices were steady, Egyptian-pound pricing surged 39 percent on sharp devaluation. Domestic sales inched up 3 percent to EGP2.2 billion ($45.54 million) as volumes plunged 18 percent on weak sentiment and last year’s pre-devaluation stockpiling.
International sales, 68 percent of revenue, rose on higher prices and robust non-woven demand. Woven volumes gained 7 percent despite soft global markets, with a 23 percent ASP rise lifting revenue 31 percent. Tufted volumes fell 6 percent, though a 14 percent ASP increase boosted revenue 7 percent. Non-woven volumes surged 31 percent, with ASP up 23 percent, driving a 61 percent revenue jump.
Egypt sales, 32 percent of revenue, fell on weak demand, with non-woven up 58 percent on a 73 percent ASP surge. “Our Q1 performance demonstrates the strength of our international platform and the success of our pricing strategy in navigating currency volatility,” the Khamis-led management said.
Family control and outlook
Oriental Weavers, one of the world’s largest producers of machine-made carpets, operates plants in Egypt, China, and the U.S., exporting to more than 150 countries. The Khamis family retains a controlling 56.58 percent stake in the publicly listed group.
The company is driving operational efficiencies, cutting costs, and restructuring high-cost units, while using its R&D strength to launch higher-margin products in profitable markets. These measures aim to bolster margins and position the firm to capture growth when demand rebounds, as in past down cycles, despite Egypt’s economic headwinds and softer global trade.
