Palm Hills Developments (PHD) announced in a statement on Wednesday that it recorded EGP10.7bn in new sales in the first half (1H) of 2022 — a 38% increase y-o-y.
Moreover, the company’s revenue stood at EGP 6.9bn — a 73% growth y-o-y. Meanwhile, net profit after tax and minority interest amounted to EGP 558m — an increase of 21% y-o-y with a net profit margin of 8%.
Furthermore, net debt increased to EGP 1.1bn, as the company postponed some securitisation transactions given the current market conditions and prevailing high interest rates.
Receivables stood at EGP 26bn — covering net debt 23 times over — and net debt to EBITDA stood at 0.5 times.
“We delivered 643 units in 1H 2022 — an increase of 24% y-o-y in handovers — and expect a ramp up in deliveries during 2H. We also have more than 600 completed units that are ready for delivery within liveable zones across various projects,” said Executive Chairperson of PHD Yassine Mansour.
“We also spent EGP 1.7bn on construction activities — an increase of 25% y-o-y — to sustain our steady focus on increasing construction spending to hedge against cost inflation in the coming quarters and increase the balance of our ready to move inventory, which recorded EGP 4.4 billion.”
He added that Badya exhibited further growth in terms of new sales, construction, and handover momentum. Sales in Badya grew by a remarkable 144% y-o-y to EGP 3.1bn, translating into 677 units sold. Moreover, Badya accounted for 35% of new residential sales and 29% of all new sales.
“We are planning to deliver more than 500 units in Badya in 2H 2022 and expect it to be the largest contributor to this year’s sales,” Mansour affirmed.
“During 2Q 2022, we successfully launched Palmet — our mixed-use development — which spans 45 feddans in the heart of Palm Hills October. Palmet is expected to offer various commercial facilities, including retail and office space, serviced apartments, and a boutique luxury hotel complemented by other amenities.”
