Cairo Poultry shares fall after Q1 profit drops nearly 38%

EGYPT – Shares of Cairo Poultry retreated on the Egyptian Exchange after the company reported a sharp decline in first-quarter earnings, reflecting mounting pressure across Egypt’s poultry industry.

The company posted consolidated net profit of about US$12.6 million (EGP 624.9 million) for the January to March 2026 period, down from more than US$20.2 million (EGP 1 billion) recorded in the corresponding quarter a year earlier, representing a decline of almost 38%.

Following the earnings announcement, investors reduced holdings in the stock amid concerns that high operating expenses and lower poultry prices may continue affecting margins through the remainder of the year.

Market analysts said the latest results point to worsening conditions in Egypt’s poultry market, where producers are facing elevated costs while struggling to maintain selling prices.

Rising costs pressure producers

Cairo Poultry operates across poultry farming, hatcheries, feed production, processed foods, and distribution networks, supplying retailers, restaurants, wholesalers, and consumers throughout Egypt.

The company expanded production capacity in recent years to meet rising domestic demand for low-cost animal protein, with poultry remaining one of Egypt’s most widely consumed meat products due to its lower price relative to beef and other proteins.

At the same time, poultry producers in Egypt have faced rising feed costs linked to global commodity price fluctuations, shipping costs, and foreign exchange shortages that are affecting imports of maize and soybean meal used in animal feed production.

The depreciation of the Egyptian pound has further increased the financial strain on producers, as most feed ingredients are purchased in foreign currency, pushing up operating costs across the sector.

Although production expenses have remained elevated, poultry prices in local markets have weakened as many farmers have increased output after earlier periods of strong demand and limited supply.

Industry observers said the resulting oversupply has reduced producers’ revenues while operational costs continue to rise, leaving both smaller farmers and larger integrated companies exposed to declining profitability.

Sector outlook remains uncertain

Analysts said Egypt’s poultry sector operates with relatively narrow margins, meaning changes in feed prices or consumer selling prices can quickly affect company earnings.

Meanwhile, persistent inflation and rising household expenses have made consumers more price-conscious, limiting producers’ ability to pass higher production costs directly to buyers.

Despite the difficult market conditions, analysts said Cairo Poultry still benefits from its vertically integrated structure, which allows it to manage several stages of production internally rather than relying heavily on outside suppliers.

Egyptian authorities continue to promote domestic poultry production as part of broader food security policies aimed at reducing reliance on imported food supplies and ensuring affordable protein availability for the country’s population.

Market watchers said investor sentiment toward the company will likely depend on whether feed costs ease, poultry demand improves, and profit margins recover during the coming quarters.

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