Orascom Development Egypt (ODE) maintains its growth momentum, reporting strong nine-month results with significant growth across all its three major business segments, Invest-Gate reports.
For the 9M 2021, the company generates revenues of EGP 4.9 bn, an increase of 50.1% when compared to last year’s EGP 3.3 bn. Net profits soars by 239.5% to EGP 1.2 bn. Moreover, gross profit records EGP 1.8 bn with a margin of 36.4% in 9M 2021, versus EGP 954.6 mn and a margin of 29.2% in 9M 2020.
The Group also continues to manage its costs successfully as SG&A expenses decreased by 13.1% to EGP 98.1 mn in 9M 2021. Finance costs declines by 14.7% to EGP 201.5 mn in 9M 2021.
As for Q3 2021, ODE logs a total revenue of EGP 1.9 bn, an increase of 42.0% compared to the EGP 1.3 bn reported for Q3 2020. Gross profit grows by 80.7% to EGP 671.3 mn with a gross margin of 35.2% in Q3 2021, versus EGP 371.5 mn with a gross margin of 43.2% in Q3 2020.
In view of ODE’s real estate, the company’s consolidated financial results reveal that the net real estate sales for 9M 2021 logs EGP 6.2 bn, a growth of 43.4% over last year, the highest nine-month sales figures in ODE’s history.
El Gouna is the largest contributor to new sales (49%), followed by O West (37%), and Makadi Heights (14%). Real estate revenues jump by 92.9% to EGP 3.7 bin in 9M 2021, versus EGP 1.9 bn in 9M 2020.
Concerning group hotels, the results improve during Q3 2021 with travel demand returning strongly as vaccines continue to roll out. Furthermore, revenues for the hotels during the 9M 2021 increase by 39.0% to EGP 525.6 mn versus EGP 378.0 mn in 9M 2020. GOP also reaches EGP 159.6 mn in 9M 2021.
When it comes to town management performance, ODE continues to grow significantly and thus securing more recurring revenue streams despite the headwinds caused by the pandemic. Revenues during 9M 2021 grow by 38.4% to EGP 662.5 mn up from EGP 478.7 mn in 9M 2020.