-          Revenue: EGP270mn, +166% Y-o-Y, +12% Q-o-Q 
-          Operating profit: EGP57.5mn, N/M Y-o-Y, +12% Q-o-Q
-          Reported net profit: EGP35.6mn, N/M Y-o-Y, +19% Q-o-Q
 
Dice reported 3Q17 results with headline earnings of EGP35.6mn, compared to net losses of EGP5.6mn during the same quarter last year (+19% sequentially). Excluding FX gains of cEGP6.4mn and capital losses of EGP2.0mn, earnings came in at EGP32.6mn on strong revenue growth. For 9M17, earnings reached EGP130.2mn, compared to net losses of EGP1.7mn during the same period last year. Results were affected by higher finance costs (+125% Y-o-Y in 3Q17, +99% Y-o-Y in 9M17) as net debt nearly doubled Y-o-Y because of the EGP floatation (80%+ of debt in USD). Top-line was up an impressive 166% Y-o-Y (+12% Q-o-Q) to EGP270.0mn during the quarter and 83% Y-o-Y during 9M17, mainly due to EGP devaluation as exports represent 70%+ of sales. Headline gross margin narrowed c380bps Y-o-Y to 28.9% in 3Q17 because of a sharp increase in COGS (+181% Y-o-Y), mainly on devaluation-related cost pressures (showed sequential improvement vs. 25.9% in 2Q17). Accordingly, gross profit was up 135% Y-o-Y (+25% sequentially) to EGP78.1mn. Meanwhile, for 9M17, gross margin widened c10pp Y-o-Y to 30.7%, with gross profit growing 170% Y-o-Y. EBIT surged EGP58.0mn during the quarter (vs.EGP3mn in 3Q16) on a 15% Y-o-Y decline in SG&A costs due to lower general and administrative expenses as well as a near-doubling of the export rebate to EGP10mn. Accordingly, EBIT margin widened c19pp Y-o-Y to 21.3%. In 9M17, EBIT margin expanded c18pp to 23.9%, with EBIT up more than sevenfold at EGP187.0mn.

(Company disclosure, Nada Amin, Hatem Alaa)
 
Dice: EGP25.78 as of 28 Nov. 2017, MCap: USD77mn, DSCW EY/DSCW.CA