Egypt - Orascom Development Egypt (ODE) reported a strong start to the year, with total revenues rising 54.3% year-on-year to EGP 6.4bn in the first quarter (Q1) of 2025.

Gross profit more than doubled, increasing by 130.2% to EGP 3.3bn. This resulted in a gross profit margin of 50.7%, up significantly from 34.0% in Q1 2024.

The growth was primarily driven by exceptional performance in the company’s recurring income segments, particularly hotels and commercial assets, which together contributed EGP 2.1bn in revenues—a 58.9% increase over the same period last year.

Adjusted EBITDA also showed impressive growth, soaring 115.5% to EGP 3.4bn, with the EBITDA margin improving to 52.7%, compared to 37.7% in Q1 2024. Net profit rebounded strongly to EGP 2bn, reversing a net loss of EGP 1bn in the first quarter of the previous year.

In the real estate segment, ODE sold 131 units in Q1 2025, generating EGP 4.1bn in net contracted sales, down from EGP 8.8bn in Q1 2024. The decline was attributed to fewer new launches, as the company prioritized timely delivery of units in O West and Makadi Heights. El Gouna remained the top contributor, accounting for 74% of total sales. Despite the drop in volumes, the segment’s deferred revenue rose by 38% year-on-year to EGP 38.6bn, enhancing visibility into future earnings.

Real estate revenues declined slightly by 2.7% to EGP 2.8bn, largely due to lower contributions from O West. However, ODE anticipates a pickup in revenues in the coming quarters, driven by accelerated construction activity. The segment delivered adjusted EBITDA of EGP 1.2bn, representing a margin of 43.2%.

ODE’s hotel operations delivered a record performance, with revenue increasing by 68% year-on-year to EGP 1.2bn—the highest first-quarter div in the company’s history. This was supported by high occupancy rates and improved average room rates, despite ongoing global macroeconomic and geopolitical challenges. 

The commercial assets segment also sustained its upward trajectory, with revenue rising 49% to EGP 1bn. Adjusted EBITDA for the segment reached EGP 361.4m, up 52%, reflecting enhanced operational efficiency and a continued focus on profitability.

Regionally, El Gouna posted Q1 real estate sales of EGP 3bn, down 26.2% due to fewer launches. However, average selling prices increased sharply by 56% to EGP 279,416 per square meter. Real estate revenue from El Gouna rose 29.9% to EGP 1.9bn, while hotel revenue jumped 67.9% to EGP 1.2bn. Total revenues from El Gouna doubled to EGP 5.5bn.

At Makadi Heights, real estate sales fell 63.3% to EGP 463.7m, despite a 102.8% increase in average selling prices. Revenues climbed 81.4% to EGP 387.4m, with 700 unit deliveries targeted by year-end.

Taba Heights, with only one operational hotel, recorded a 161.1% increase in revenues to EGP 28.2m. The company continues to focus on cost control while awaiting a broader recovery in tourism.

O West experienced a sharp drop in real estate sales, which fell 82.0% to EGP 604.7m due to the lack of new project launches. However, average selling prices rose 75.3%, partially offsetting the volume decline. Revenues dropped 54.9% to EGP 530.6m. ODE expects a rebound in the second quarter, supported by intensified construction efforts and a planned capital increase later in 2025.

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