Madinet Masr reported impressive financial results for the H1 of 2023, ending June 30, 2023, during which the company witnessed substantial growth and significantly increased net profit, driven by soaring unit sales from new project launches and expansions, Invest-Gate reports.

The company’s net profit for this period reached EGP 584.7 mn, accompanied by total revenues of EGP 2,199.6 mn. In Q2 2023, Madinet Masr recorded a net profit of EGP 280.3 mn, generating a top line of EGP 1,184.4 mn.

A key highlight of Madinet Masr’s performance in H1 2023 is the remarkable increase in the gross contracted sales, which amounted to EGP 5,298.3 mn, marking a 54.6% year-on-year (YoY) growth.

Madinet Masr’s subsidiaries, Minka and EgyCan, contributed EGP 1.45 bn in the contracted sales, which were not consolidated in the company’s H1 2023 results. The company also experienced a substantial quarterly growth of 90.7% in gross contracted sales, reaching EGP 3,505.5 mn for Q2 2023.

Although the number of units delivered by Madinet Masr during H1 2023 decreased by 42.4% compared to the same period in 2022, with 479 units delivered, this decline was attributed to a higher inventory of ready-to-move-in units in 2022. Similarly, the company had 203 units in Q2 2023, reflecting a 56.9% YoY decrease.

Madinet Masr’s revenue for H1 2023 amounted to EGP 2,199.6 mn, representing a 22.8% YoY increase, driven by robust growth in gross contracted sales. In Q2 2023, the company achieved revenues of EGP 1,184.4 mn, indicating a 21.8% growth compared to Q2 2022.

The company’s gross profit exhibited significant growth, with EGP 1,379.6 mn recorded in H1 2023, a remarkable 152.1% increase YoY. This rise in gross profit margin from 30.6% in H1 2022 to 62.7% in H1 2023 can be attributed to the higher-margin revenue generated from new sales.

Moreover, in Q2 2023, Madinet Masr’s gross profit amounted to EGP 799.7 mn, reflecting a 189.9% YoY increase, with a gross profit margin of 67.5%, compared to 28.4% in Q2 2022.

Also, Madinet Masr’s EBITDA for H1 2023 reached EGP 873.1 mn, marking a substantial 116.1% YoY increase. The EBITDA margin for the period stood at 39.7%, compared to 22.6% in the same period last year. In Q2 2023, the company achieved an EBITDA of EGP 429.3 mn, a growth of 122.4% year-on-year, with a margin of 36.2% compared to 19.9% in Q2 2022.

The net profit for Madinet Masr in H1 2023 reached EGP 584.7 mn, indicating an impressive 146.8% YoY increase, with a net profit margin of 26.6% compared to 13.2% in H1 2022. In Q2 2023, the net profit amounted to EGP 280.3 mn, reflecting a substantial 140.2% growth, with a net profit margin of 23.7% compared to 12.0% in Q2 2022.

Madinet Masr has successfully optimized its borrowing utilization to support growth and manage financial risk. The company’s net debt decreased by 28.3% year-to-date, reaching EGP 995.8 million by the end of H1 2023.

The net debt/EBITDA ratio improved to 0.57x, down from 1.72x at the end of FY 2022. Additionally, the total notes receivable for Madinet Masr reached EGP 4,371.3 mn as of June 30, 2023, indicating a 10.7% increase from the end of 2022. The receivables/net debt ratio for H1 2023 improved to 4.4x, up from 2.8x at the close of FY 2022.

Madinet Masr also experienced substantial cash collections, with EGP 1,954.9 mn recorded in H1 2023, representing a 19.6% YoY increase. In Q2 2023 alone, the company collected EGP 1,066.8 mn, reflecting a significant 33.7% growth compared to Q2 2022.

During H1 2023, Madinet Masr invested EGP 925.5 mn in construction and infrastructure capital expenditures (CAPEX), indicating an increase from the EGP 798.9 million spent in H1 2022. This investment primarily focused on ongoing projects, particularly at Taj City. In Q2 2023, the company deployed EGP 413.4 mn in CAPEX, nearly matching the EGP 417.8 mn spent in Q2 2022.

Notably, Madinet Masr’s robust financial performance in H1 2023, characterized by doubled net profit and substantial growth in gross contracted sales, highlights the company’s success in expanding its urban community developments. With ongoing projects and strategic utilization of resources, Madinet Masr remains well-positioned for continued growth in the Egyptian real estate market.