Orascom Development Egypt (ODE) has released its financial results for Q1 2021, Invest-Gate reports.

ODE grows its total revenues by 61.5% to EGP 1.46 bn and its net profit by 377.1% to EGP 438.5 mn, with real estate sales reaching EGP 2.1 bn, according to a company press release on May 10.

ODE revenues are up 61.5% to EGP 1.46 bn, despite the tourism industry halt from Covid 19, the statement reads. ODE achieves operating EBITDA more than doubled to EGP 590.9 mn, with a 40.5% margin.
Moreover, it achieves net profit up 377.1% to EGP 438.5 million compared to EGP 91.9 mn in Q1 2020 with net real estate sales up 37.0% to EGP 2.1 bn vs. EGP 1.5 bn in Q1 2020, which included EGP 301.4 mn of commercial land sales.

According to the statement, the total deferred revenue from real estate increased by 21.0% to EGP 9.6 bn in Q1 2021, and the total real estate portfolio receivables increased by 35.0% to EGP 12.8 bn in Q1 2021.

Furthermore, the cash balance increased by 22.4% to EGP 2.5 bn in Q1 2021 from EGP 2.0 bn in FY 2020, signaling a strong liquidity position. Also, cash flows from operations reached EGP 396.3 mn, a 26.8% increase from EGP 312.5 mn in Q1 2020.
Meanwhile, the company started the year on solid grounds with strong operational and financial results, despite the Covid-19 effect on the hospitality segment. The strong growth during the first quarter of the year was driven by a significant increase in the company’s real estate segment performance.

Revenues reached EGP 1.46 billion, up 61.5% y-o-y compared to EGP 903.8 mn in Q1 2020. The boost in revenues resulted from the acceleration of construction activities across all our projects, with real estate revenues reaching EGP 1.2 bn, an increase of 156.2% y-o-y compared to Q1 2020, as reported by the statement.

Likewise, gross profit increased by 152.9% to EGP 574.9 mn in Q1 2021 (Q1 2020: EGP 227.3 mn) with a gross margin of 39.4%. Operating EBITDA was up 171.8% to EGP 590.9 mn in Q1 2021, with a 40.5% margin compared to EGP 217.4 mn and a margin of 24.1%. EBITDA also increased by 174.6% to EGP 694.0 mn (Q1 2020: EGP 252.7 mn).

Interest expense decreased by 11.9% to EGP 70.1 million in Q1 2021 (Q1 2020: EGP 79.6 million) due to the decrease in Libor and Corridor rates. Net income increased almost 4.8x to EGP 438.5 mn in Q1 2021 and with a net profit margin of 30.0% vs. EGP 91.9 mn in Q1 2020 with a margin of 10.2%. During Q1 2021, we were able to increase our cash balance by 22.4% to EGP 2.5 bn, compared to the EGP 2.0 bn in FY 2020, the stamen reads.

Total debt reached EGP 3.5 bn while net debt stood at EGP 1.0 bn (FY 2020: EGP 1.5 bn). We continue to generate positive cash flows from operations, recording a 26.8% increase to EGP 396.3 mn in Q1 2021 (Q1 2020: EGP 312.5 mn), the statement concludes.