Cairo – Orascom Development Egypt (ODE) continued to achieve good results in the first half-year of 2021 supported by a solid performance of the real estate segment and efficient cost management. The Group’s top line revenue growth was enabled by improved market sentiments, supported by expectations of a gradual economic recovery, and a healthy housing demand for our real estate products. The momentum driven by our real estate segment led to a net profit of EGP 744.6 million, despite the ongoing headwinds from Covid-19 affecting the hospitality business.
Financial Review:
1H 2021:
Revenues reached EGP 3.0 billion, up 55.8% y-o-y. Gross profit also increased by 90.9% to EGP 1.1 billion. We were not only able to maintain our healthy gross profit margins, but increase it to 37.2%, (1H 2020: 30.4%). The Group continued to manage its costs successfully during the period with smart spending initiatives across the board. SG&A expenses decreased by 10.0% to EGP 54.6 million in 1H 2021. Adj. EBITDA more than double to EGP 1.15 billion in 1H 2021, with a 38.6% margin vs. EGP 560.6 million and a margin of 29.2%. EBITDA also increased by 136.6% to EGP 1.23 billion in 1H 2021. Interest expense decreased by 16.8% to EGP 134.9 million in 1H 2021 due to the decrease in Libor and Corridor rates. Net profit for the period surged by 342.2% to EGP 744.6 million in 1H 2021. ODE continued its prudent cash management and business optimization initiatives, further fortifying the Group’s balance sheet and maintaining an enhanced liquidity stance. Total cash and cash equivalent balance reached EGP 2.6 billion, while total debt reached EGP 3.5 billion and net debt reached EGP 866.7 million. We continued to generate positive cash flows from operations, recording a 109.4% increase to EGP 813.2 million in 1H 2021.
Q2 2021:
Topline performance remained strong, benefitting primarily from the robust growth in our real estate segment in addition to the slight recovery in the hotel’s business. Revenues increased by a solid 50.7% to reach EGP 1.5 billion in Q2 2021. While gross profit also increased by 51.2% to EGP 538.0 million in Q2 2021 with a gross margin of 35.1% (Q2 2020: EGP 355.8 million and a margin of 35.0%). Adj. EBITDA was up in Q2 2021 by 64.2% to 563.4 million with a margin of 36.7% vs. EGP 343.2 million and a margin of 33.7%. EBITDA also surged by 100.7% to EGP 537.8 million in Q2 2021. In line with this background net profit was up 4.0x to EGP 306.1 million in Q2 2021 (Q2 2020: EGP 76.5 million).
© Press Release 2021
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