Oriental Weavers Q1 2026 profit rises to $17.1 million on lower costs, higher exports

Oriental Weavers, the Cairo-based manufacturer known as the world’s largest producer of woven rugs and carpets, began 2026 with stronger earnings, reporting first-quarter profit of more than $17 million as lower raw material costs and steady international demand helped offset weaker consumer spending and a slowdown in housing-related markets.

The group, chaired by Yasmine Mohamed Farid Khamis, reported first-quarter profit of EGP893 million ($17.1 million), up 62 percent from EGP551 million ($10.5 million) a year earlier. The increase came as revenue climbed and the group benefited from softer polypropylene prices, which eased pressure on production costs and supported margins during the quarter.

Revenue rose 9 percent to EGP6.94 billion ($132.7 million) in the first quarter of 2026, compared with EGP6.39 billion ($122.2 million) in the same period last year. Sales volumes increased 8 percent, driven largely by overseas markets, particularly the United States, where demand remained steadier than in several regional markets.

Manufacturing efficiency balances market headwinds

The results come at a time when manufacturers across Egypt continue to face pressure from weaker discretionary spending, slower construction activity and uncertainty tied to geopolitical tensions. Even so, Oriental Weavers managed to expand sales while keeping a close watch on operating costs, helping the group maintain profitability in a tougher trading environment.

Chief Executive Officer Hazem Al Zifzaf said the group’s latest performance reflected continued strength from the final quarter of 2025, despite pressure on global demand and slower activity in home improvement and construction markets, as the group continued shifting toward higher-margin products and export markets that offer stronger returns, helping offset weaker conditions in parts of the domestic market. 

“We delivered a strong set of results during the quarter,” Al Zifzaf said. “We continued to capitalize on our R&D capabilities through the introduction of higher-margin products across more profitable channels and destinations while maintaining a strong focus on operational efficiency across manufacturing and supply chain operations.”

Oriental Weavers’ balance sheet shows stronger liquidity

Oriental Weavers was founded in 1979 by the late Egyptian industrialist Mohammed Farid Khamis and has been listed on the Egyptian Exchange since 1997. Built on Egypt’s long textile tradition, Oriental Weavers grew from a single-loom operation into one of the country’s biggest industrial success stories. Under Yasmine Khamis, the group has expanded its international footprint and strengthened its position in the global carpet industry.

The group’s first-quarter results also reflected a stronger balance sheet, with Oriental Weavers shifting from a net debt position of EGP1.5 billion ($28.7 million) in the first quarter of 2025 to a net cash position of EGP1.2 billion ($23 million) in the latest quarter. The improved cash position gives Oriental Weavers greater flexibility to manage operating costs, support future expansion and navigate uneven demand across global consumer markets.

Total assets increased from EGP33.1 billion ($633 million) at the end of December 2025 to EGP37.1 billion ($710 million) by March 31, 2026. Shareholders’ equity rose from EGP20.8 billion ($398 million) to EGP23.5 billion ($449.4 million), while retained earnings nearly doubled from EGP2.5 billion ($47.8 million) to EGP4.8 billion ($92 million).