Orascom Development Egypt (ODE) starts the year with strong positive operational and financial results across all its destinations, recording a net profit of EGP 384 mn in the first quarter, Invest-Gate reports.

Financial Review
During Q1 2023, total revenues reach EGP 3 bn, up 52.8% YoY. Gross profit increases by 60.9% to EGP 1.1 bn with a margin of 37.1%.

The company reveals that the boost in its revenues and gross profit results from the acceleration of the construction activities, with real estate revenues reaching EGP 2 bn, an increase of 44.3%, in addition to the enhanced business performance of the hotels and town management segments.

Adjusted EBITDA also increases by 61.8% YoY to EGP 1.2 bn, while other gains and losses report a loss of EGP 519.5 mn.

“The increase in other gains and losses mainly attributes to the FX loss related to the portion of foreign currency debt as a result of the devaluation of the EGP.”

Group Real Estate

Net real estate sales reach EGP 2.7 bn, a 35.9% YoY increase in Q1 2023, coupled with accelerated construction, boosting our segment’s revenues to EGP 2 bn.

El Gouna becomes the group’s largest contributor to new sales (41%), followed by O West (40%), and Makadi Heights (18%). Revenues from real estate increased by 44.3%  YoY to EGP 2 bn.

Hotels

A tremendous start for our hotel’s segment recording more than double-digit growth for all main operational KPIs in Q1 2023 compared to the same period last year despite the global economic headwinds.

Revenues for the hotels during Q1 2023 surge by 120% YoY to EGP 573.2 million, and growth operating profit increases by 220.8% YoY to EGP 332.0 million.