Orascom Development Egypt (ODE) kicked off the year with a strong set of results, as revenue surged to EGP 4.2 bn, a remarkable increase of 41.4% year-over-year, Invest-Gate reports.

This exceptional performance can be attributed to robust execution across all our business segments. In Q1 2024, gross profit rose by 29.4% year-over-year, reaching EGP 1.4 bn.

However, the gross profit margin experienced a slight squeeze, standing at 34.0% (Q1 2023: 37.1%), due to the mounting pressure of material costs caused by the prevailing inflationary environment.

Despite these challenges, the increase in revenues and gross profit showcases ODE operational excellence and the accelerated pace of our construction activities. Notably, real estate revenues soared to EGP 2.8 bn, representing a substantial increase of 40.8% compared to Q1 2023.

Moreover, ODE witnessed exceptional growth in recurring income segments, including hotels and commercial assets, which contributed EGP 1.3 bn to the total revenue, marking an impressive 42.6% year-over-year increase.

Adjusted EBITDA expanded solidly by 35.1% to reach EGP 1.6 bn, with a margin of 37.7% in Q1 2024. However, other gains and losses reported a loss of EGP 2.4 bn, primarily due to the devaluation of the EGP and its impact on the portion of foreign currency debt. Additionally, finance costs increased by 107.0% to reach EGP 434.9 mn in Q1 2024, driven by the rise in interest rates.

ODE’s real estate sales in Q1 2024 reached EGP 8.8 bn, marking a substantial increase of 218.3% from EGP 2.7 bn in Q1 2023 and representing the highest Q1 sales figures since the inception of the company.

Notably, 43% of real estate sales originated from international markets. The increase in sales across all destinations was driven by higher average selling prices and the number of units sold, which rose by 124.3% to 610 units compared to Q1 2023. El Gouna emerged as the group’s largest contributor to new sales, accounting for 47%, followed by O West at 39%, and Makadi Heights at 14%.