Talaat Moustafa Group Holding (TMG) has reported sales of EGP 2.2bn in the second quarter (Q2) of 2020, representing a 69.4% year-on-year (y-o-y) decline.
The figures bring sales for the first half (H1) of 2020 to EGP 4.5bn, representing a downturn of 61.9% y-o-y. On a sequential basis, the company’s sales performance seemed to hold its ground, portraying a slight 0.4% quarter-on-quarter (q-o-q) increase.
TMGH noted that its sales performance faces continued pressure due to the novel coronavirus (COVID-19) pandemic, which accounts for the downturn.
The company reported solid revenues in Q2 of 2020, witnessing a decline of only 15.2% y-o-y to EGP 2.3bn.
Although the full financials for this period are yet to be released, the company’s hospitality revenues are likely to be virtually non-existent in Q2 of 2020 due to the closures of hotels due to the pandemic.
As a result, TMG expects that non-hospitality revenues, the bulk of which come from real estate, will have performed on a par with the Q2 of 2019 period.
This would take into consideration that the revenues without the hospitality portion in Q2 of 2019 are almost exactly equal to total revenues reported in Q2 of 2020.
Pharos Research noted that, given the EGP 4.5bn TMG reported in H1 of 2020 sales, the company is on track to meet its fiscal year (FY) 2019/20 sales forecast of EGP 7.0bn. This represents a 65.9% y-o-y decrease, especially since there might be some recovery in sales numbers in H2 of 2020.