Riyadh – Mubasher: Saudi Industrial Development Company (SIDC) on Tuesday stated that the recent floatation of the Egyptian Pound (EGP) versus the dollar in Egypt will negatively affect its consolidated financial results.

The impact will hit SIDC’s wholly-owned subsidiary in Egypt, Arabian Co. for Sponges and Spring Mattresses Manufacturing Limited (Sleep High – Egypt), according to a bourse filing.

The impact is expected to reach SAR 9 million (EGP 37.29 million) according to the officially announce price on the date of the EGP floatation, SIDC said.

The figure entails SAR 4.1 million in currency differences that will impact the income statement, added to SAR 4.9 million that will impact shareholders’ equity, it added.

On Thursday, 3 November, the Central Bank of Egypt (CBE) announced floating the EGP against foreign currencies and left pricing to supply-and-demand mechanisms.

SIDC has taken the necessary hedging measures that will limit the effect of the EGP devaluation, the company’s statement to Tadawul showed.

The company is also considering various alternatives to reduce these effects in the future, it added.

SIDC recently reported narrowing its losses in the third quarter of 2016 by 19.8% to SAR 9.3 million, compared to SAR 11.6 million in the same period in 2015.