Paints & Chemical Industries (Pachin) said on Thursday, in a statement to the stock market, it is initially planning to have a direct presence in an African market through either an acquisition or a joint venture with a local partner.
However, no specific studies have been carried out in this regard, the company noted. CEO Mohie Abdel Razik was cited earlier today as saying his company is seeking to foray into an African country through several options including acquisitions or joint ventures with a paint firm,.
The top official told Al Mal gazette that the company to be acquired should have strong ties with the government in such an African country that should be stable at the political and economic levels.
He also said the second option is to launch a joint venture with a local entity with EGP 10 million investments.
Abdel Razik indicated that potential markets include Ethiopia, Ghana and Nigeria.
The company posted consolidated financial results for the fiscal year that ended on June 30, 2014, showing a decline in net profit by 23% to EGP 74.4 million, from EGP 96.8 million a year earlier.
Standalone net profit amounted to EGP71.4 million, compared with EGP 82.29 million in FY12/13.
Financial results for the nine-month period that ended on March 31, 2014 had shown a 17% drop in net profit to EGP 54.9 million, compared with EGP 66.7 million net profit in the same period a year earlier. The company’s financial results for the period July-December, 2013 had shown EGP 45.24 million net profit after tax and minority interest, compared with EGP 48.46 million in the same period a year earlier.