In continuation of its impressive momentum since the beginning of 2023, Orascom Development Egypt (ODE) has once again delivered stellar financial and operational results, Invest-Gate reports.

The company’s diversified lines of business have played a significant role in sustaining its growth pattern and reinforcing its strong position in the industry, making it resilient to future crises. Despite the global, regional, and local challenges, ODE’s performance remains exemplary.

During the first half of 2023, ODE showcased its capability to enhance performance through effective operational management, despite being impacted by a non-cash foreign exchange loss of EGP 334.6 mn. This enhanced operational capacity has increased Adjusted EBITA, EBITDA, and margins. The company’s commitment to innovation, talent, and operational excellence has increased real estate sales, profitability, customer satisfaction, and shareholder value.

The financial review for H1 2023 reveals outstanding figures for ODE. The company recorded a total revenue of EGP 6.2 bn, representing a remarkable year-on-year growth of 62.2%. Despite a challenging market environment, ODE’s profitability continued to improve, as evidenced by the significant growth in revenues, gross profit, and net profit. Gross profit increased by 63.1% to reach EGP 2.1 bn, with a margin of 34.6%.

The boost in revenues and gross profit is a testament to ODE’s operational excellence and accelerated construction activities. Real estate revenues reached EGP 4.0 bn, a 53.4% increase compared to H1 2022, highlighting the positive performance of the hotel and town management segments. Moreover, adjusted EBITDA experienced substantial growth of 65.1% to EGP 2.3 bn in H1 2023, with a margin of 37%.

ODE’s bottom-line figures demonstrated operational excellence, with net income rising 17.2% to EGP 1.0 bn in H1 2023. Adjusted net income, excluding one-offs, would have witnessed a remarkable increase of nearly 48.9% from EGP 978.8 mn in H1 2022 to EGP 1.5 bn in H1 2023.

Furthermore, the company’s balance sheet remained strong during H1 2023, with a cash and cash equivalent balance of EGP 4.1 bn. Total bank debt, excluding ODH debt, stood at EGP 7.9 bn, reflecting an increase compared to FY 2022, mainly due to the depreciation of the Egyptian pound against foreign currencies. The net debt reached EGP 3.9 bn.

ODE’s second-quarter performance in 2023 further showcased the company’s execution capabilities and strength, despite significant challenges. The revenues for Q2 2023 surged by 71.7% to EGP 3.2 bn, with gross profit and net profit increasing by 65.6% and 57.7%, respectively.

In the real estate segment, ODE achieved remarkable results, with net real estate sales for H1 2023 reaching EGP 7.5 bn, a significant growth of 59.9% compared to the previous year. This marks the highest first-half sales figures in the company’s history. The positive sales momentum was driven by solid demand in O West, El Gouna, and Makadi Heights, with O West being the largest contributor to new sales. Average selling prices per square meter increased across all destinations, with El Gouna experiencing an 82.1% surge, O West witnessing a 43.8% increase, and Makadi Heights showing a 19% rise compared to H1 2022. Real estate revenue and Adjusted EBITDA also saw significant growth, increasing by 53.4% and 51.9%, respectively, in H1 2023.

In the hotel segment, ODE’s proven business model delivered impressive results, with revenues surging by 118.2% to EGP 1.4 bn during H1 2023, outperforming the broader hospitality market in Egypt. The return of inbound tourism contributed to this success, with occupancy and ARR levels benefiting from positive year-on-year changes. Total revenues for the hotel’s segment increased by 118.2% in H1 2023, accompanied by a significant rise in GOP and Adjusted EBITDA.

The destination management segment also experienced recurring solid income growth, with revenues increasing by 40.4% to EGP 808.3 mn in H1 2023. This growth was driven by increased guest arrivals and higher spending per guest, reflecting the recovery of the tourism sector in Egypt.

It is noteworthy that ODE’s visionary leadership, strategic initiatives, and customer-centric approach played a pivotal role in achieving these remarkable results. The company’s ongoing commitment to delivering high-quality projects, investing in infrastructure, and creating sustainable communities have resonated well with customers and investors alike.

Looking ahead, ODE remains focused on driving sustainable growth and expanding its market presence. The company is well-positioned to capitalize on Egypt’s recovering real estate and tourism sectors. ODE aims to continue its successful track record by launching new projects, leveraging digital technologies, and enhancing operational efficiency.

In conclusion, ODE has demonstrated its resilience and achieved outstanding financial results and operational performance in 2023 H1. The company’s robust growth in revenues, profitability, and real estate sales, coupled with its strong balance sheet, positions it for continued success in the future. ODE’s commitment to excellence, innovation, and customer satisfaction ensures its continued leadership in the industry.