Cairo Poultry Company (POUL.CA on the Egyptian Exchange) CPC announced strong 1H25 results, achieving 16% year-on-year revenue growth to EGP7,883 million. This performance was fueled by strategic pricing initiatives across poultry and processing segments amid persistent supply constraints, alongside volume expansion in core businesses—notably feed sales. Despite challenging market conditions and subdued consumer demand, the company preserved healthy margins, highlighting its operational agility.
EBITDA rose 24% YoY to EGP1,957 million in 1H25, with margins reaching 25%. Net profit jumped 48% YoY to a record EGP1,680 million, while net profit margin expanded to 21% from 17% in 1H24. These outstanding results reflect CPC’s ability to sustain profitability while navigating ongoing market volatility.
Sectoral Performance
Feed Division
In 1H25, total feed sales volumes rose by 30% YoY, fueled by a robust 40% recovery in cattle feed sales and a 26% increase in poultry feed sales, alongside a 22% growth in aqua feed sales. This expansion followed a low base in 1H24, when volumes were subdued due to extremely high prices caused by foreign exchange shortages, which discouraged farmer activity. Additionally, compared to 2Q24 and 1Q25, feed sales grew by 32% and 17%, respectively.
In 1H25, average prices declined by 19% YoY due to higher availability of grains compared to 1H24 on the back of a more favorable FX rate. This contraction led to a drop in EBITDA margin, which fell to 5% from 12% in the same period last year.
Poultry Division
In 1H25, parent chick volumes rebounded strongly, rising 78% YoY from the depressed levels of 1H24, while increasing 11% compared to 2Q24 but declining 25% versus 1Q25. Broiler chick volumes fell 5% YoY. Similarly, 2Q25 volume dropped 4% and 9% compared to 2Q24 and 1Q25, respectively, due to cyclical phasing. Live bird volumes followed a similar trend, declining, 11% YoY and 2Q25 falling 14% and 27% against 2Q24 and 1Q25, respectively driven by challenging rearing conditions and phasing.
FX shortages in early 2024, followed by disease outbreaks, severely disrupted production, creating supply shortages that impacted 1H25. As a result, parent chick prices jumped 88% to EGP460/chick, while broiler chick and live bird prices increased by 50% and 4% YoY, reaching EGP44/chick and EGP85/kg, respectively. These price increases helped lift the sector’s EBITDA margin to 32% in 1H25, up from 26% in 1H24.
Processing and Further Processing (Koki)
Despite challenges from weaker consumer spending, Koki showed resilience in 1H25. Total sales dipped just 1% compared to the previous year, with a sharp 48% rise in processed chicken sales making up for a 13% decline in value-added product sales. Sequentially, volumes fell 3% and 9% compared to 2Q24 and 1Q25, respectively, reflecting continued pressure on consumer spending.
By leveraging innovative strategies and adapting swiftly to market shifts, Koki raised average selling prices by 18% YoY in 1H25, countering higher input costs and soft demand. This pricing strength drove a robust EBITDA margin of 12%, up from 8% in 1H24
Financial Performance
In 1H25, CPC recorded robust 16% revenue growth to EGP7,883 mn versus 1H24, fueled by favorable pricing and volume growth across all segments, complemented by a strong recovery in feed volumes. Sequentially, 2Q25 revenues grew 9% over 2Q24 but declined 13% compared to 1Q25.
COGS rose 8% YoY to EGP5,162 mn, while gross profit surged 34% to EGP2,721 mn. The gross margin expanded significantly to 35% (up 4.7 ppts YoY). Compared to 2Q24, 2Q25 gross profit increased 7% despite a marginal 0.7% margin contraction, while showing a 30% decline versus 1Q25 with a 7.5% margin reduction.
SG&A expenses increased 17% to EGP360 mn in 1H25, maintaining tight control at 4.6% of revenues (versus 4.5% in 1H24), primarily due to increase in wages and sales-related costs.
EBITDA grew 24% to EGP1,957 mn, with margins expanding 1.5 ppts to 25%. However, 2Q25 EBITDA declined 8% and 39% versus 2Q24 and 1Q25 respectively, with margin contractions of 4 ppts and 9 ppts.
CPC achieved remarkable progress in net interest income, which soared six-fold to EGP321 mn in 1H25. This reflects successful execution of the company’s strategy to minimize external borrowing costs while optimizing cash management during periods of high interest rates.
Net profit jumped 48% YoY to EGP1,680 mn, achieving a strong 21% margin. Sequentially, 2Q25 net profit rose 15% to EGP673 mn (18% margin, up 1 ppt versus 2Q24) but declined 33% compared to 1Q25 with a 5 ppt margin contraction.
Demonstrating financial resilience, CPC strengthened its balance sheet despite market challenges. The company reduced its cash conversion cycle to 48 days in 1H25 (from 51 days in 1H24), primarily through strategic supplier negotiations as well as the product mix, highlighting operational discipline and reinforcing its stable financial position.
Outlook
Despite facing tough market headwinds and pressured consumer budgets, CPC has demonstrated strong performance, bolstered by its vertically integrated business model that strengthens both resilience and profitability. As we move into 2H25, broiler chick and live bird prices are expected to normalize with more stable supply conditions and better farming environments – a development that should stimulate greater demand for poultry feed and improve prices.
Leveraging its integrated operations, CPC continues to focus on strengthening its market position and enhancing operational effectiveness. This strategic focus positions the company to maintain financial resilience and healthy margins amid evolving market dynamics and competitive pressures