Orascom Development Egypt (ODE) reveals achieving good results in H1 2021, supported by a solid performance of the real estate segment and efficient cost management, Invest-Gate reports.
The consolidated financial statement of ODE discloses that the net profit has surged by 342.2% YoY hitting EGP 744.6 mn in H1 2021, despite the pandemic’s ongoing headwinds affecting the hospitality business.
Additionally, the company’s revenues have reached EGP 3 bn in H1 2021, up 55.8% YoY. Meanwhile, the gross profit has increased by 90.9%, to EGP 1.1 bn, in the same period. Moreover, ODE has increased its gross profit margins to 37.2%, vs. 30.4% in H1 2020.
The Group has managed its costs successfully during the period with smart spending initiatives across the board. The SG&A expenses have decreased by 10% to EGP 54.6 mn in H1 2021.
Adj. EBITDA has doubled to EGP 1.15 bn in H1 2021, with a 38.6% margin, vs. EGP 560.6 mn and a margin of 29.2%, in the previous year. Besides, EBITDA has increased by 136.6% to EGP 1.23 bn in H1 2021.
Interest expense has decreased by 16.8% to EGP 134.9 mn in H1 2021, due to the decrease in Libor and Corridor rates.
Continuing the prudent cash management of ODE, total cash and cash equivalent balance have reached EGP 2.6 bn, while total debt has reached EGP 3.5 bn and net debt has reached EGP 866.7 mn in H1 2021. Moreover, the cash flows from operations have recorded an increase of 109.4%, recording EGP 813.2 mn in H1 2021.
Additionally, the new net real estate sales have amounted to EGP 4 bn in H1 2021, achieving a growth of 40% YoY, translating into 647 units sold.
Moving to Q2 2021, the company’s revenues have increased by a solid 50.7%, to reach EGP 1.5 bn. Meanwhile, the gross profit has raised by 51.2% to EGP 538 mn in the same period, with a gross margin of 35.1%, compared to EGP 355.8 mn and a margin of 35% in Q2 2020.
Additionally, Adj. EBITDA has accelerated in Q2 2021 by 64.2%, to EGP 563.4 mn with a margin of 36.7%, vs. EGP 343.2 mn and a margin of 33.7%. EBITDA has also surged by 100.7% to EGP 537.8 mn in Q2 2021.
In line with this background, the net profit has jumped by 4x to EGP 306.1 mn in Q2 2021, compared to EGP 76.5 mn in Q2 2020.