Orascom Development Egypt (ODE) brought in EGP 4.7bn in real estate sales during 1H 2022 — a 16.9% growth from last year — and total revenue increased by 27.6% to EGP 3.8bn. It also recorded a net profit of EGP 858.3m — an increase of 15.3% y-o-y.
Furthermore, total revenues reached EGP 3.8bn — up 27.6% y-o-y — compared to EGP 3.0bn in 1H 2021. Gross profit increased by 18% to EGP 1.3bn, compared to EGP 1.1bn.
The boost in revenues and gross profit resulted from the acceleration of ODE’s construction activities, with real estate revenues reaching EGP 2.6bn — an increase of 12.1% — in addition to the enhanced business performance of the hotels and town management segments.
Additionally, EBITDA increased by 20.3% to EGP 1.4bn with a 36.4% margin, compared to EGP 1.1bn and a margin of 38.6%. Other gains and losses recorded EGP 120.5m versus a gain of EGP 33.5m. The FX translation loss is mainly related to the devaluation of the EGP.
Interest expenses increased by 13.7% to EGP 153.4m, compared to EGP 134.9m, due to the increase in interest rates. This operational excellence was reflected in ODE’s bottom-line figures with a net income increase of 15.3%, recording EGP 858.3m, compared to EGP 744.6m.
It is worth mentioning that adjusted net income — excluding one-offs, which includes forex losses or gains along with any non-operational one-off transactions— would have increased by almost 37.6% from EGP 711.1m to EGP 978.8m.
Also, the company’s cash and cash equivalent balance reached EGP 2.9bn. Total debt stood at EGP 3.8bn, compared to EGP 3.4bn, and net debt reached EGP 985.5m.
The increase in debt is mainly a result of the depreciation of the EGP against foreign currencies. ODE also continued to generate positive cash flows from operations, recording EGP 632.1m, compared to EGP 813.2m.