Orascom Development Egypt announced that its revenues reached EGP 7.1bn, an increase of 41.4% compared to EGP 5.0bn in FY 2020. Gross profit also increased by 69.3% to EGP 2.4bn with a margin of 33.9% in FY 2021 vs. EGP 1.4bn and a margin of 28.4% in FY 2020.
The company’s EBITDA reached EGP 2.5bn, an 82.0% increase vs. EGP 1.4bn in 2020. EBITDA also increased by 81.5% to EGP 2.3bn compared to EGP 1.3bn in FY 2020. Finance costs decreased by 16.9% to EGP 269.5 million in FY 2021 as we decided to pay back all leases in El Gouna and thus generated more savings. Net profits reached EGP 1.3bn in FY 2021 up 2.3x compared to EGP 571.3bn in FY 2020.
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 3.1bn in FY 2021, a 51.3% increase y-o-y. Total outstanding debt reached EGP 3.4bn and net debt was EGP 322.8 million. Net debt to Adj. EBITDA reached 0.1x in FY 2021 down from 1.1x in FY 2020. We also managed to generate EGP 1.7bn in cash flow from operations, a 40.0% increase over the same period last year.
New sales for Q4 2021 reached EGP 3.0bn, a 61.4% increase from EGP 1.8bn in Q4 2020. That brings our FY 2021 sales value to EGP 9.2bn, a 48.8% increase over FY 2020 and 32.9% over FY 2019. Our operations continued to progress during Q4 2021. We had a robust quarter with strong demand for secondary homes, complemented by solid sales momentum in O West and Makadi.
The increase in sales across all destinations was a factor of both, our ability to increase the average selling prices and the number of units sold, which increased by 53.5% to 1,455 units in FY 2021 vs. 948 units in FY 2020. Our solid construction pace kept us on track with our planned unit delivery for FY 2021. ODE delivered 278 units in El Gouna, meeting all our contractual delivery dates. El Gouna continued to be the Group’s largest contributor to new sales (44% of sales), followed by O West (43% of sales), and Makadi Heights (13% of sales).
Real estate revenues increased by 56.2% to EGP 5.2bn (FY 2020: EGP 3.3bn). The segments’ Adj. EBITDA increased by 86.9% to EGP 2.2bn. Total deferred revenue from real estate that is yet to be recognized until 2026 increased by 39.7% to EGP 12.2bn, while total real estate portfolio receivables increased by 57.8% to EGP 18.5bn. Real estate cash collections also increased by 46.4% to EGP 4.5bn during FY 2021.
The management said: In February 2022, the Russian and Ukrainian conflict emerged. The situation is changing rapidly creating high volatility across the markets. ODE is closely monitoring the market developments, however, it is too early to fully assess the impact of the conflict on our hospitality segment.
Despite the current uncertainties, there is neither an indication of a significant disruption of the Group’s business nor signs of a material impact on its future operational performance.
Egyptians still represent more than 50% of the hotel’s occupancy and it depends highly on the Western European markets, mainly Germany, Belgium, France and Switzerland, as main source markets for foreign tourism.
In 2021, the Russian and Ukrainian guests represented only 3% of the hotel’s total foreign occupancy.
While restrictions on international travel have begun to ease, there is still uncertainty in the market around the performance of hotels. Accordingly, ODE decided to abstain at the time being from providing guidance for 2022.
