Khamis family’s Oriental Weavers starts 2025 with $11 million profit

Key Points

• Oriental Weavers’ Q1 2025 revenue rose 27% to $128.2 million, driven by exports, amid a slight dip in profitability due to rising costs and Egypt’s currency devaluation.
• Export sales surged 44% to $84.17 million, supported by volume gains and favorable exchange rates, while domestic sales grew just 3% as demand weakened.
• Cash from operations dropped 60% to $9.52 million, leading to negative free cash flow, yet the group ended Q1 with $81.97 million in cash reserves.

Cairo-based Oriental Weavers, the global carpet giant controlled by Egyptian businesswoman Yasmine Mohamed Khamis and her siblings, opened 2025 on a mixed note, recording strong top-line growth but a slight dip in net earnings as currency devaluation and rising input costs weighed on margins.

According to its recent update, the group reported a 27 percent increase in revenue to EGP6.4 billion ($128.22 million) for the three months ended Mar. 31, up from EGP5.04 billion ($101 million) in Q1 2024. However, net profit slipped 1.2 percent year-on-year to EGP551 million ($11 million), despite export rebates and prudent cash management supporting the bottom line.

The decline in profitability reflects the impact of Egypt’s accelerating currency crisis, which inflated operating costs and labor expenses, while margins came under pressure from a stronger U.S. dollar and constrained domestic demand.

Exports fuel growth as local sales soften

Export sales surged 44 percent to EGP4.2 billion ($84.17 million), bolstered by a 3 percent increase in volumes and favorable currency translation. While average prices in hard currency held steady, pricing in Egyptian pounds jumped 39 percent due to sharp devaluation. 

In contrast, local revenues rose just 3 percent to EGP2.2 billion ($44.09 million), with domestic volumes falling 18 percent amid sluggish consumer sentiment and a high base effect from Q1 2024, when wholesalers stocked aggressively in anticipation of devaluation.

Cash flow narrows despite strong liquidity

Cash generation came under pressure, with net cash from operations plunging 60 percent to EGP475 million ($9.52 million). Capital expenditures more than doubled, pushing Oriental into negative free cash flow of EGP130 million ($2.61 million) for the quarter. Nonetheless, the company maintained a robust liquidity buffer, ending Q1 with EGP4.09 billion ($81.97 million) in cash and equivalents.

“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 team stated. “We remain focused on driving sustainable growth, managing input costs, and unlocking operational efficiencies.”

Family-led carpet giant targets operational gains

Oriental Weavers, one of the world’s largest producers of machine-made carpets, has manufacturing plants in Egypt, China, and the U.S., with its products reaching customers in over 150 countries. The Khamis family maintains a majority stake of 56.58 percent, ensuring they remain in control of the publicly traded company. 

The group’s total assets increased to EGP35 billion ($701.42 million), while shareholders’ equity reached EGP21.1 billion ($422.86 million). Liabilities stayed mostly steady, reflecting the company’s careful approach to managing debt. Despite ongoing economic challenges in Egypt and a slow global trade environment, Oriental Weavers is focusing on exports and improving efficiency to protect its profit margins and deliver value to shareholders in the coming quarters.