ODE Posts 253.4% Surge in H1 Sales

ODE Posts 253.4% Surge in H1 Sales

Orascom Development Egypt’s (ODE) net sales hiked by 253.4% to EGP 4.2 bn in H1 2019, compared to EGP 1.2 bn a year earlier, driven by a rise in unit sales in its newly launched project in west Cairo, O West, in addition to El Gouna and Makadi Heights, Invest-Gate reports.

Besides, the company’s revenues continued its uptrend and posted a solid 52.4% surge in H1 2019 to EGP 2.33 bn from EGP 1.5 bn in the year-ago period, backed by the enhanced operational performance across all business segments, particularly real estate, revealed ODE’s financial statements on August 20.

According to the release, 860 units were contracted in the January-June period of 2019, “representing a growth of 245.4% versus 249 in H1 2018 number of units. Revenues also increased by 170.6% to EGP 1.25 bn versus EGP 462.2 mn in H1 2018, on the back of increased deliveries in El Gouna, in addition to the recognized land portion for the sold units in O West.”

The property developer’s gross profit also soared by 20.1% to hit EGP 733.8 mn during the six-month period, with a margin of 31.5%. EBITDA grew by 43.8% year-over-year to EGP 908.1 mn in H1 2019, translating into an EBITDA margin of 39.0%.

“It is important to note that EBITDA margins were affected by O West, our first home project in Egypt, due to the upfront launch sales and marketing expenses incurred during the period,” read the statement.

ODE’s outlook for 2019 mulls new real estate sales between EGP 6.5 bn and EGP 7 bn, compared to EGP 2.3 bn in 2018, capitalizing on O West and building on the positive momentum of El Gouna and Makadi Heights.

Praising such positive results, the company’s CEO Khaled Bichara stated, “We are very pleased to see that ODE is continuing its solid stance and continues to be on track to achieve 2019 targets.”

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