Orascom Development Egypt (ODE) has commenced the year with strong financial results, reporting a revenue of EGP 4.2bn in the first quarter (Q1) of 2024, marking a year-over-year (y-o-y) increase of 41.4%.
The company’s gross profit rose by 29.4% y-o-y to EGP 1.4bn in Q1 2024. However, the gross profit margin contracted slightly to 34.0% (compared to 37.1% in Q1 2023), primarily due to escalating material costs amidst an inflationary climate.
Real estate revenues surged to EGP 2.8bn, a 40.8% increase from Q1 2023. ODE also saw significant growth in its recurring income segments, such as hotels and commercial assets, contributing EGP 1.3bn to total revenue—a 42.6% y-o-y increase. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 35.1%, reaching EGP 1.6bn with a margin of 37.7% in Q1 2024. The company reported other gains and losses with a net loss of EGP 2.4bn, mainly due to foreign currency debt devaluation impacts on the Egyptian pound. Finance costs soared by 107.0% to EGP 434.9m in Q1 2024, driven by rising interest rates.
Adjusted net income, excluding one-time items such as forex fluctuations and non-operational transactions, climbed by 52.7% from EGP 903.5 million in Q1 2023 to EGP 1.4bn in Q1 2024. However, a net loss of EGP 984.5 million was recorded in Q1 2024, in contrast to a net profit of EGP 384m, largely attributable to an EGP 2.4bn FX loss caused by the EGP devaluation.
Net real estate sales experienced a dramatic increase of 218.3%, reaching EGP 8.8bn. Q1 2024 new sales hit a record EGP 8.8bn, up 218.3% from EGP 2.7bn in Q1 2023, with international sales comprising 43% of the total. This sales boost was achieved through higher average selling prices and a 124.3% increase in units sold, totalling 610 units.
El Gouna emerged as the leading contributor to new sales at 47%, followed by O West at 39%, and Makadi Heights at 14%.
Despite challenging market conditions, the company’s hotel group reported a revenue increase of 21.9% to EGP 698.8m, with foreign guests accounting for 94% of occupancy in Q1 2024.
