رئيس مجلس إدارة شركة الدلتا للسكر المصرية لـ CNBC عربية: نستهدف أرباحاً تتجاوز الـ 1.4 مليار جنيه هذا العام وحجم التدفقات المالية يقترب من 4.5 مليار جنيه
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00:00 [Music]
00:13 Welcome viewers to this episode of the weekly dialogue
00:16 which comes to you from Cairo via CNBC Arabia
00:19 and our guest is Dr. Ahmed Abou Yazid,
00:21 Chairman of the Board of Directors and a member of the Delta Sugar Company
00:25 Dr. Ahmed, welcome to CNBC Arabia
00:27 Welcome, sir, I'm very happy to be here
00:29 Let's start with the company's results in the first half of the year
00:33 and there was a 100% increase in profits
00:36 The profits doubled in the first half
00:39 What were the main factors that contributed to the company's increase in profits during this period?
00:43 In the name of God, the most merciful, the most merciful
00:46 At first, we violated a policy in the company
00:49 which has been in place for about five years
00:53 which is to reduce the funding flows
00:56 What does it mean to reduce the funding flows?
00:59 It means that we work with a cash flow system
01:02 which means that I have quick and continuous financial inflows
01:06 in order to reduce the cash flow
01:09 The cash flow gives me profits and these profits become funding flows
01:13 Therefore, we violated a financial policy and a marketing policy
01:18 that we build all the production that we produce
01:21 to have a cash flow in the market
01:24 This is the first action
01:26 The second action is that we implemented a policy of restructuring and development of the company
01:31 As you know, the company's production capacity was 14,000 tons of sugar per day
01:42 We increased the production capacity and turned it into 21,000 tons per day
01:48 What does this number mean?
01:54 It means that we have a sugar production capacity that exceeds 3,000 tons of sugar per day
02:00 Therefore, the amount of sugar produced annually increased
02:06 Instead of 270,000 tons, this year I exceeded 356,000 tons of sugar production
02:15 This means that the production lines were increased
02:18 Yes, the production capacity and the capacity of the company were increased
02:22 to more than what they used to have
02:24 So, I have 25% or 20% more sugar production
02:31 The third action is that we used to work on the production of sugar from sugar beet only
02:38 We worked in parallel with the production of sugar from the sugar beet
02:43 We integrated the process of re-supplying raw sugar
02:47 and we integrated it with the production of local sugar from sugar beet
02:53 to increase the efficiency of energy consumption
02:57 This is an activity that was recently added
02:59 Yes, we did not initially work on re-supplying with local production
03:03 I had periods of shortage or shortage in supply
03:08 Especially in the early days, which starts in the last month of February and March
03:14 The amount of sugar beet that is produced is low
03:18 So, I have a shortage of efficiency and efficiency
03:24 We continued to bring raw sugar and we continued with production
03:28 What does this mean?
03:30 It means that you are saving energy
03:33 You have no energy wasted
03:35 We made a cash flow and increased the capacity of factories
03:40 Energy was used and it was used up
03:43 This means that the production cost of sugar is reduced
03:47 Is the repetition here only for sugar beet or for other companies?
03:51 All the companies that were in the same situation
03:54 brought raw sugar and repeated it
03:56 Because as you know, we have a shortage
03:59 The self-sufficiency in sugar is between 87% and 90% in Egypt
04:05 We import 10% or 13% of the sugar from abroad
04:10 In the form of raw sugar, there is a quantity of about 400,000 tons
04:15 These 400,000 tons of raw sugar come through the Ministry of Company
04:20 through some of the local factories and it is repeated here in Egypt
04:24 You were talking about the fourth factor
04:26 The fourth factor that we are talking about
04:30 is that we have a plan to have good export
04:34 As you know, we produce annual products
04:38 We produce sugar from the sugar beet harvest
04:41 and I have an annual product, which is molasses
04:44 Molasses enters many factories
04:46 How much is the export volume or the export revenues?
04:50 The export revenues are close to about 50 million dollars
04:55 This is annually?
04:57 Yes, this helps me to get raw sugar
05:00 It helps me to get other parts
05:02 Because we do something called solid maintenance
05:05 After each season of operation
05:07 We have to get other parts from abroad
05:09 Of course, we get it with a dollar currency
05:11 We get raw sugar, so we need the currency
05:14 Instead of borrowing money in the past
05:17 We are now managing the currency through self-management
05:21 of the products that are marketed by the company
05:24 So you don't need to manage a dollar currency
05:26 to get raw sugar?
05:28 No
05:29 How much is the cash flow in the company?
05:31 We deal with a portfolio of about 4.5 billion pounds
05:36 A portfolio of about 4.5 billion pounds of sales transactions
05:43 This is the commercial flow that we get from it
05:47 And thank God, we are talking about the factors that we talked about
05:54 This led to the company's revenues jumping to high levels
06:03 Last year, we were talking about 1.1 billion pounds of profits
06:10 This year, we are talking about a level of profits that will exceed 1.4 billion pounds
06:19 What is the policy of distribution of profits?
06:21 Of course, we have a plan for distribution of profits
06:24 We avoid a part of the profits that is called "missing profits"
06:29 We avoid specialties
06:31 Because if we want to follow the same path as we did before
06:35 The first phase, the first and the second
06:37 We also avoid a part of the savings for projects and development
06:43 The rest is dedicated to distributing the profits to the contributors
06:49 As you know, we are a contributing company
06:51 The investment law system is 159
06:54 We have about 16% of the portfolio listed in the stock exchange
07:00 In the form of state documents in the Egyptian stock exchange
07:04 The rest is a contribution from the sugar company and the comprehensive industries
07:08 The Egyptian sugar company and the comprehensive industries
07:11 Then the chemical company, which is affiliated with the capture company
07:14 Then the insurance company and the insurance company for life
07:19 And the national investment bank, which is also a partner in the company
07:24 What about the investment balance, the share of investments
07:27 Which the company has observed in the past year
07:30 And also the targets for investment in the coming year
07:33 Recently, we have joined the Egyptian company that produces ethanol
07:38 And this is in the Domat port, which cooperates with the capture company for petrochemicals
07:42 So we joined them, this is a new project
07:44 We invested 5% in it
07:47 And after that, we can increase the share
07:50 And this is for the production of a specific type of alcohol or ethanol
07:55 Which is not in moisture, it is 99.9%
07:58 This is for the fuel
08:00 And this is exported to the outside world and brings a very good currency
08:04 And brings high prices, so this gives us the potential
08:07 To increase the share
08:09 To increase the share and also to have a chance
08:12 That the company's profits, God willing, will be more developed
08:15 How much does 5% of this investment represent?
08:18 The number, because the project is before expansion
08:22 The current number is about 15 million dollars
08:28 The company has a deposit, a deposit in the local currency
08:33 This deposit is about one billion pounds
08:36 And we also have a dollar deposit of about 15 million dollars
08:42 So, thank God, this is what we are also studying at this stage
08:50 That we can contribute to the sugar factory
08:54 Whether it is done in any area that is suitable for sugar farming
08:58 And we are also studying that we have a special land
09:02 A special agricultural land for the company
09:04 You can see that Egypt is currently encouraging companies
09:09 To have lands to invest in or to plant the raw material
09:15 Like the land of the land of the landowner
09:20 So, how many lands does the company currently plant?
09:24 We deal annually with at least 110,000 acres
09:29 We deal annually with at least 55,000 farmers
09:34 55,000 farmers, Delta Company contracts with them
09:39 Annually, we enter the old Delta lands
09:42 Which, as you know, is the factory in the province of Kafr El Sheikh
09:46 So, we plant in the province of Kafr El Sheikh and the neighboring provinces
09:50 Like Al-Ahliya, Al-Sharqiya, Al-Alyubiya
09:54 And we also plant a part in the east of the Suez Canal
09:58 In the east of Tafri'a and in the Sahel Al-Tin
10:01 These areas have entered us a new year
10:04 When the crisis of the Russian-Ukrainian war happened
10:08 There was a crisis in the borders
10:11 So, the state encouraged the farmers to plant grains and wheat
10:20 Egypt encouraged the farmers
10:24 And increased the price of wheat
10:27 It exceeded 1,500 pounds
10:30 So, there is a competition in the winter wheat
10:35 Between the wheat and the sugarcane
10:38 And both of them are planted in one wheat called the winter wheat
10:42 And both of them are strategic goods
10:44 And both of them are strategic goods, as you mentioned
10:48 So, we must look for another strategic alternative
10:52 And this is in the national projects of the lands
10:55 Like the Future of Egypt project, like the Paradise of Egypt project
10:58 Like the other projects, like the 1.5 million acres project
11:02 All these projects
11:05 Our potential is to expand the planting of the farmers
11:10 In these lands, which are newly refurbished
11:13 Through these national projects
11:15 There are many rumors about the existence of negotiations
11:19 With Gulf investment banks to acquire a share from the company
11:24 And the company continues to deny the expansion of the stock market
11:27 That there were negotiations or that it received offers
11:30 What is the reality of this matter?
11:32 Are there really negotiations?
11:34 Did you receive offers to acquire a share from the company?
11:37 We are not talking about the word acquisition
11:40 We are talking about the partnership for development
11:44 We are talking about the partnership for development
11:48 The investor in the company, in the end
11:51 Is concerned with knowing if there are really offers
11:55 To acquire a share, a share, to acquire a share
11:58 At the stage we are at
12:00 We cooperate with the state through the Ministry of Finance
12:03 And the Ministry of Planning
12:05 Through the Egyptian sovereign fund
12:08 That we establish the company
12:11 We establish the company so that it puts us in the right track
12:14 And after that, any offers related to any partnership
12:22 A cooperative, an investment, in order to raise
12:27 Because anything that is offered is studied
12:30 But until now, while we are sitting together
12:34 No partner, sister or investor has offered
12:40 Any partnership with Delta
12:43 Mr. Ahmed, I will continue with you in this interview
12:46 But please allow me a break
12:48 Our viewers will now take a break
12:50 And then we will continue this episode of the weekly interview
12:52 Stay with us
12:53 [Music]
13:20 Welcome again, viewers, to this episode of the weekly interview
13:23 Our guest is Dr. Ahmed Abou El Yazid
13:25 President of the Board of Directors and a member of the Delta Sugar Company
13:29 Dr. Ahmed, welcome again
13:31 Welcome, Mr. Ahmed, and to our viewers
13:33 Why is there a sugar crisis in Egypt?
13:35 God willing, there is no crisis or anything
13:37 What is happening in the sugar sector or in the markets?
13:40 I will tell you
13:41 First, I will talk about facts sheet, facts in digital minutes
13:45 About the production of sugar in the Arab Republic of Egypt
13:49 We produce annually from the harvest of sugar beetles
13:54 Through eight factories
13:56 Four of them are direct followers of the state
14:00 Through the company that is in charge of food industries
14:03 Which is the Delta Company, the Deahliya Company, the Nubaria Company, and the Fayoum Company
14:09 And four are followed by investment sectors
14:11 Such as the Sharqiya Company, the Nile Company, the Alexandria Company, which is Safoda
14:16 And the sugar channel
14:17 We produce 1.8 million tons of sugar
14:21 Or more precisely, 1.8 million tons of sugar
14:25 This is from the sugar bar?
14:26 From the sugar bar only
14:28 And we also produce from the harvest of sugar beetles
14:31 From an area of approximately 224,000 acres
14:36 We produce at least 850,000 to 900,000 tons of sugar beetles
14:42 And they are stored in the Wajh-e Ibli
14:44 Through the Egyptian sugar company and the sugar processing factories
14:48 And we also produce glucose and high fructose
14:52 With amounts equivalent to 250,000 tons from the national company of corn products
14:58 When we come to calculate all this from consumption
15:02 We consume annually 3.3 million tons of sugar
15:07 The citizen consumes approximately 32 to 34 kilos of sugar annually
15:15 What is the reason for the increase in the rate?
15:18 The surplus is about 10%
15:21 As we said, it is a self-sufficiency rate of 87 to 90%
15:27 We import 10% of this amount of sugar
15:31 Which is approximately 400,000 tons of sugar
15:35 And the surplus is re-imported to Egypt and is sold in the local markets
15:39 What is the reason for this increase?
15:42 We found that there is a high demand for sugar now
15:47 You know that Egypt has become a host
15:52 To a large number of Arab countries
15:57 In the shadow of geopolitical conflicts and crises
16:00 So you have a large mass that consumes food
16:05 Not just you
16:06 The new equation is that there was a crisis in Sudan
16:11 And the crisis in Sudan, the brother country, was disrupted by sugar factories
16:17 You know that the sugar production factory in Sudan had a problem
16:21 In the shadow of this conflict
16:23 But the increase in demand started locally
16:25 Locally and externally
16:27 As Egypt, there is an exchange between us and Sudan
16:32 A partnership was established between the Egyptian-Sudanese company
16:39 Between Sudan and the Arab Republic of Egypt
16:43 Through the company that seized the food industries
16:46 And implemented the national service projects
16:48 And the Sudanese government
16:51 This company was supposed to import meat from Sudan
16:57 Whether in live pieces
17:00 And they make it here in the refugee camps
17:02 And they slaughter it and distribute it as cold meat
17:05 And not frozen
17:07 Its level is close to that of local meat
17:12 Therefore, there are competitive deals
17:15 Between Egypt and Sudan
17:18 Therefore, when the crisis happened with the brothers in Sudan
17:23 There was a kind of Egyptian support for them
17:27 That we take meat and give it sugar instead
17:32 In what is called competitive deals
17:35 Or exchange deals
17:37 Therefore, we have exported a part of Sudan
17:41 And we also use raw sugar from abroad
17:46 Some of them also had a question mark in the market
17:50 Because Egypt has a gap, as I said
17:53 And at the same time, it exports
17:56 So why export if there is something for the local market?
18:01 Egypt has a human duty
18:04 And it has a duty to honor the countries of its brother
18:10 And the country is considered by the President
18:14 As a part of the Egyptian citizen
18:19 If you want to know what happened to the Syrian brothers
18:23 Who are here in Egypt
18:25 They are treated as Egyptians
18:27 But the Sudanese brothers are treated as Egyptians
18:31 The privileges that anyone takes
18:35 Are not treated as refugees
18:37 Secondly, if we take into account
18:40 How many exports of sugar are made in food industries
18:44 Which are jams, juices, and sweet bread
18:49 Any product that has sugar is manufactured
18:52 In Egypt, in the past period
18:55 The export of manufactured food industries
18:59 Exceeded 14-16 billion
19:02 A part of these exports are made in sugar
19:05 Today, after the conflicts that happened in Yemen, Libya, and Sudan
19:10 Factories have been disrupted
19:12 The amount of exports that we export to Libya, Yemen, and Sudan
19:18 Are large exports
19:20 And manufactured products are put in them, including sugar
19:23 All this, the sugar that is manufactured in food industries
19:27 Takes a part of the supply
19:29 The hostility that the Sudanese brothers have
19:34 And all this, we as a state try to get used to
19:38 In the form of raw sugar that we import from abroad
19:42 Raw sugar has been mass produced
19:45 The prices of the world's sugar exchange
19:49 Have increased a lot
19:51 Before we go to the world's sugar exchange
19:53 Have the exports to Sudan been stopped?
19:56 No, Egypt has not stopped
19:58 There is cooperation
20:00 Even in the midst of the current crisis?
20:02 No, we are still in the midst of competitive deals
20:05 You need a part of the meat
20:07 And you give them a part of the sugar
20:09 These are competitive deals
20:11 That are being made between us
20:13 You were talking about the price fluctuations
20:15 In the prices of sugar in the world's sugar market
20:18 The price fluctuations or the price clashes
20:21 Have a reason
20:23 Because the higher the price of energy
20:28 Sugar is one of the sources of energy
20:31 And therefore it is related to the price of oil and gas
20:36 A few days ago, there was a surge in energy prices
20:40 We saw the series from 60 to 70 to 80 to 90
20:43 To 100 to 110 dollars for oil
20:47 For the oil barrel
20:49 And therefore, one will ask
20:51 What is the relationship of energy with the production of sugar
20:53 That comes from the liver or from the pancreas?
20:56 The largest producer of sugar in the world
21:00 Is Brazil, Thailand and India
21:05 There was a shortage of sugar in the world
21:09 In supply and demand
21:11 When it decreases, the price rises
21:14 What made it decrease?
21:16 What made sugar decrease
21:18 The two signs are two things
21:21 India had drought
21:23 The amount of sugar produced in India or Thailand decreased
21:28 Brazil produces about 43 million tons of sugar
21:36 A huge number
21:38 When oil boils
21:40 Brazil converts a large part of sugar
21:43 To produce biofuel or ethanol
21:47 As a source of clean energy and expensive
21:52 When oil boils, it converts a part of sugar
21:56 To produce alcohol or bioethanol
21:58 Which is also a clean energy
22:00 And it takes carbon from it
22:02 And makes it more expensive
22:04 It decreases the supply globally
22:06 And the sugar rises
22:08 As it is now
22:10 Today we are talking about a stock exchange
22:12 That has planned 730 dollars per ton on its land
22:15 It will still be shipped
22:17 And it will be spent on insurance and on trading
22:20 This is what makes sugar jumps
22:23 You will say, what is the point of sitting here in Egypt?
22:26 What is the point of buying the international stock exchange?
22:29 No, I have a part that is compensated
22:31 With the whole sugar that I will import
22:33 But you have a self-sufficiency of 90%
22:36 Therefore, the impact of external crises
22:39 Should not be great
22:41 Good
22:42 I will explain to you the subject
22:44 If there is a chance
22:46 We have several factories
22:49 One of them is a part that we export
22:52 With compensated payments
22:54 Because I bring a strategic commodity
22:56 Meat is also a strategic commodity
22:58 And it cannot be absent
23:00 So I bring something as long as I have a balance
23:03 And I have something called strategic reserves
23:06 How much is the strategic reserve of Egypt now?
23:10 We have a strategic reserve
23:12 That exceeds a million tons today
23:14 And this is enough for us for about five months
23:17 This strategic reserve
23:20 In the past, it was 15 months
23:23 And now we have increased the ratio to 5 to 6 months
23:26 Most of the strategic commodities are now 5 to 6 months
23:29 This strategic reserve is kept in the market
23:32 And you start to export it at stages in months
23:35 The raw sugar that comes from the companies
23:39 That work in the private sector
23:42 The companies that we talk about
23:47 In Egypt, they are socially responsible
23:52 In the sense that they do not take the whole view
23:55 From an economic point of view
23:57 We were surprised by some behaviors
24:00 From some companies or some factories
24:03 That sell at a price on the basis of what is
24:06 Available in the international stock market
24:09 And this is a price jump
24:13 Today, the day we are sitting in
24:16 The Prime Minister's state with the ministers of finance
24:20 There is a special session
24:22 To research and discuss such matters
24:25 And how to control the price of sugar
24:29 To keep it expensive for the citizens
24:32 Have there been any clashes between the traders
24:34 In the price of sugar in Egypt?
24:36 I will not focus on this point
24:38 But what happens is that
24:41 The private sector companies
24:46 When the international stock market
24:49 Is called a high number
24:51 They deal with the mechanism of this number
24:54 And the trader takes the commodity
24:58 And starts to trade it
25:01 From one to another
25:04 And this increases the price
25:06 And for this reason, the state has done
25:09 A very important thing
25:11 The Ministry of Finance intervened
25:14 And there is an assumption that the companies
25:17 That follow it will put sugar in the commodity stock market
25:21 And this is the first time in Egypt this year
25:24 That sugar is put in the commodity stock market
25:27 And this was a good point
25:29 Because there were clear lines
25:31 That there will be no price clashes
25:33 The last price we sold in the stock market
25:36 Was 24,300 pounds
25:40 And this is a very good price
25:43 And this was the first time
25:46 That about 6 sessions were held
25:49 To put sugar in the commodity stock market
25:52 And we are coordinating to expand this experiment
25:56 To prevent clashes
26:00 And to reduce the price of sugar
26:04 And there will be procedures
26:07 That will be issued by the Ministry of Finance
26:12 So, it is not the sweet of the creator that is important
26:15 No, no
26:17 Mr. Ahmed, thank you for this interview
26:19 You are welcome
26:21 And we have reached the end of this episode
26:25 You came from Cairo
26:27 And our guest today is Dr. Ahmed Abou Yazid
26:30 The head of the board of directors and a member of the sugar company
26:33 See you in the next episode
26:35 Goodbye
26:37 (music)