Madinet Masr, one of Egypt’s leading urban community developers, announces its standalone financial results for the Q1 2023, reporting a net profit of EGP 304.4 mnon total revenue of EGP 1 bn, Invest-Gate reports.
The company recorded gross contracted sales of EGP 1.79 bn for Q1 2023, up by 12.8% y-o-y.
On the other hand, newly acquired subsidiaries – Minka and EgyCan – generated EGP 544 mn in contracted sales which were not consolidated in Madinet Masr’s results for the quarter.
During Q1 2023, the real estate developer delivered a total of 276 units, down 23.5% y-o-y versus the 361 units delivered for Q1 2022 due to a higher inventory of ready-to-move in units 2022.
The company’s gross profit came in at EGP 579.9 mn in Q1 2023, up 113.6% y-o-y. Madinet Masr’s gross profit margin increased from 33.2% in Q1 2022 to 57.1% in Q1 2023 due to an increase in revenue from new sales with higher margins as compared to revenue from unit delivery with lower margins.
Further, the company deployed EGP 512.1 mn in construction and infrastructure CAPEX during Q1 2023, compared to the outlay of EGP 381.1 mn in Q1 2022, reflecting ongoing projects primarily at Taj City.
Abdallah Sallam, CEO of Madinet Masr, states: “The Egyptian real estate market continues to demonstrate its defensive nature amidst macroeconomic instability and inflationary pressures. The prevailing market fundamentals along with our Company’s strategic vision, unwavering resilience, and the dedication of our talented team are yielding remarkable outcomes and propelling the next era of growth for Madinet Masr.”
Sallam adds: “We firmly believe in strategic expansion as a catalyst for long-term growth and value creation. Our vision for the future is best exemplified through our rebranded identity, which channels a new era of geographic expansion and strategic transformation as we look beyond Nasr City and East Cairo. We have ambitious projects in the pipeline as we continue our mission of transforming urban communities and shaping the real estate landscape.”