Raya Holding for Financial Investments, a Cairo-based conglomerate and key player in the Egyptian investment landscape, led by tycoon Medhat Khalil, has witnessed a decline in profit, which fell below $15 million in H1 2026 as higher operating and selling expenses weighed on profitability.

The group attributed its top-line growth to stronger operational performance across its portfolio, increased market penetration, new product launches, market-share gains and expansion into international markets.

Raya’s revenue rises 21.6% to $673.17 million in H1 2026 as profit falls

According to figures contained in its half-year financial disclosure for the period ended June 30, 2026, the Egyptian investment group reported a 17.1% decline in profit, decreasing from the prior half-year’s EGP 892 million ($18 million) to EGP739 million ($14.73 million) in H1 2026.

The Cairo-based investment group reported a 21.6% surge in consolidated revenue, which increased 21.6% year-on-year to EGP33.79 billion ($673.17 million) , compared with EGP27.78 billion ($553.57 million) in the first half of 2025. Gross profit rose 7.8% to EGP6.47 billion ($129 million) from EGP6 billion ($119.54 million), although the gross profit margin declined to 19.2% from 21.6%.

Raya Holding’s foreign-currency-denominated revenue increased 3.2% year-on-year to EGP9.13 billion ($181.93 million) in H1 2026, up from EGP8.84 billion ($176.16 million) a year earlier. The revenue represented 27% of the group’s total consolidated revenue, reflecting the company’s continued efforts to expand its international footprint and diversify its income streams.

Higher costs weigh on EBITDA and net profit

However, higher operating expenses placed pressure on margins. General and administrative expenses increased 22.8% to EGP2.69 billion from EGP2.19 billion, while selling and marketing expenses climbed 26% to EGP1.37 billion from EGP1.09 billion. The increase in selling and marketing costs was driven by intensified promotional campaigns and customer acquisition initiatives as Raya sought to support expansion across regional and international markets.

The faster growth in selling, marketing and operating costs compared with revenue resulted in a 9.5% decline in EBITDA to EGP2.9 billion ($57.79 million) during the first half of 2026.

Consequently, the group’s EBITDA margin narrowed by 2.9 percentage points to 8.6%, compared with 11.5% in H1 2025. Net profit before minority interests fell 9.2% year-on-year to EGP882 million ($17.57 million) from EGP972 million ($19.37 million), while net profit after minority interests declined 17.1% to EGP739 million ($14.72 million). The company attributed the decline primarily to higher operating expenses, which offset the benefits of its strong revenue growth.

Raya Trade leads revenue growth

Raya Holding’s Retail and Distribution sector remained one of the group’s strongest contributors, with Raya Trade generating revenue of EGP14.75 billion in H1 2026, up 51.9% from EGP9.71 billion a year earlier. The performance was supported by the company’s growing international presence, particularly in Nigeria, alongside higher retail revenue following the expansion of the Raya Shop and Raya Mega Stores networks.

A continued shift toward higher-margin products also supported growth, while the addition of brands including Kenwood and De’Longhi strengthened Raya Trade’s product portfolio. Raya FMCG generated EGP1.58 billion in revenue, up 41.2% year-on-year, driven by new business partnerships and expansion initiatives that broadened market reach and supported market-share gains. Effective cost management also contributed to operational efficiency.

Raya Information Technology and its subsidiaries generated EGP7.04 billion ($140.26 million) in revenue during the first half of 2026, down 12.8% from EGP8.08 billion ($160.98 million) in H1 2025. Despite the decline, the Technology and Infrastructure segment maintained a strong market position, supported by new banking and telecommunications projects spanning ATM services, information systems and data centers.

Meanwhile, Raya Customer Experience, the group’s business process outsourcing arm, recorded revenue of EGP1.7 billion ($33.87 million), representing a 29.3% increase from EGP1.32 billion ($26.3 million) in the previous year. Growth was driven by new contracts in Gulf and European markets, the expansion of specialised multilingual technical support services and rising global demand for Egypt-based outsourcing, supported by the country’s cost competitiveness and skilled workforce.

A long-term presence in Egypt’s technology sector

Raya Holdings, established in 1999 through a merger between entities owned by Medhat Khalil and Orascom Group, has become a prominent player in the Egyptian investment landscape. Khalil maintains a commanding 58.1% majority stake in Raya Holdings. The group operates 15 delivery sites across Egypt, the UAE, Bahrain, Saudi Arabia, and Poland, serving more than 100 clients in industries including telecom, technology, banking, automotive, travel, and retail.