Key Highlights Q1 2021

  • Revenues up 61.5% to EGP 1.46 billion, despite the tourism industry halt from Covid 19
  • Operating EBITDA more than doubled to EGP 590.9 million, with a 40.5% margin
  • Net profit up 377.1% to EGP 438.5 million compared to EGP 91.9 million in Q1 2020
  • Net real estate sales up 37.0% to EGP 2.1 billion vs. EGP 1.5 billion in Q1 2020, which included EGP 301.4 million of commercial land sales
  • Total deferred revenue from real estate increased by 21.0% to EGP 9.6 billion in Q1 2021
  • Total real estate portfolio receivables increased by 35.0% to EGP 12.8 billion in Q1 2021
  • Cash balance increased by 22.4% to EGP 2.5 billion in Q1 2021 from EGP 2.0 billion in FY 2020, signaling a strong liquidity position
  • Cash flows from operations reached EGP 396.3 million, a 26.8% increase from EGP 312.5 million in Q1 2020 

Cairo: – Orascom Development Egypt (ODE) started the year on solid grounds with strong operational and financial results, despite the headwinds from the prevailing Covid-19 affecting our hospitality segment. The strong growth during the first quarter of the year was driven by significant increase in our real estate segment performance.

Financial Review:

Q1 2021:

Revenues reached EGP 1.46 billion, up 61.5% y-o-y compared to EGP 903.8 million in Q1 2020. The boost in revenues resulted from the acceleration of our construction activities across all our projects, with real estate revenues reaching EGP 1.2 billion, an increase of 156.2% y-o-y compared to Q1 2020. Gross profit increased by 152.9% to EGP 574.9 million in Q1 2021 (Q1 2020: EGP 227.3 million) with a gross margin of 39.4%. Operating EBITDA was up 171.8% to EGP 590.9 million in Q1 2021, with a 40.5% margin compared to EGP 217.4 million and a margin of 24.1%. EBITDA also increased by 174.6% to EGP 694.0 million (Q1 2020: EGP 252.7 million).

Interest expense decreased by 11.9% to EGP 70.1 million in Q1 2021 (Q1 2020: EGP 79.6 million) due to the decrease in Libor and Corridor rates. Net income increased almost 4.8x to EGP 438.5 million in Q1 2021 and with a net profit margin of 30.0% vs. EGP 91.9 million in Q1 2020 with a margin of 10.2%. During Q1 2021, we were able to increase our cash balance by 22.4% to EGP 2.5 billion, compared to the EGP 2.0 billion in FY 2020.

Total debt reached EGP 3.5 billion while net debt stood at EGP 1.0 billion (FY 2020: EGP 1.5 billion). We continued to generate positive cash flows from operations, recording a 26.8% increase to EGP 396.3 million in Q1 2021 (Q1 2020: EGP 312.5 million).

Read the full report here.

-Ends-

About Orascom Development Egypt (ODE):

Orascom Development Egypt (ODE) is the largest subsidiary of Orascom Development Holding (ODH). ODE is an integrated developer of resort towns in Egypt, with a vertically integrated business model involving the development of residential units, hotels, and recreational facilities such as golf courses, town centers, and marinas, in addition to supporting infrastructure, such as hospitals, schools, and utilities. ODE currently owns a land bank of 49.9 million square meter and 24 hotels with a total of 4,950 rooms within four operating destinations. El Gouna, on the Egyptian Red Sea Coast in Hurghada, Taba Heights, on the Sinai Peninsula, Makadi in Hurghada and Byoum in Fayoum. ODE also launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located in 6th of October City.

Contact for Investors:                                                                  
Sara El Gawahergy                                                         
Head of Investor Relations
Head of Strategic Projects Management                                   
Tel: +20 224 61 89 61
Tel: +41 418 74 17 11                                                                                  
Email: ir@orascomdh.com 

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