Orascom Development Egypt starts the year with strong operational and financial results and a significant increase in the real estate segment’s performance and enhanced business performance of the hotels and town management segments, Invest-Gate reports.

Revenues reached EGP 1.9 bn in Q1 2022, a 32.2% increase when compared to EGP 1.46 bn in Q1 2021. Gross profit levelled up by 18.5% to EGP 681.1 mn in Q1 2022, compared to EGP 574.9 mn in the same period a year ago, with a gross margin of 35.3%.

“The real estate revenues reaching EGP 1.4 bn, an increase of 18.1% compared to Q1 2021, in addition to the enhanced business performance of the hotels and town management segments,” the company highlights in its statement.

Adjusted EBITDA is up 22.0% to EGP 721.1 mn in Q1 2022, with a 37.3% margin compared to EGP 590.9 mn and a margin of 40.5% in Q1 2021.

“The Group continues to preserve a healthy balance sheet and monitor its cash balance and liquidity. In Q1 2022, we are able to increase our cash balance by 4.1% to EGP 3.2 bn. We continued to generate positive cash flows from operations, recording EGP 224.2 mn in Q1 2022 (Q1 2021: EGP 396.3 mn),” the statement adds.

Group Real Estate: Net real estate sales of EGP 2.0 bn in Q1 2022, coupled with accelerated construction, boosting our segment’s revenues to EGP 1.4 bn.

Moreover, new real estate sales for Q1 2022 reach EGP 2.0 bn, almost flat when compared to the same period last year. O West is the group’s largest contributor to new sales (50%), followed by El Gouna (43%) and Makadi Heights (7%).

El Gouna’s average selling prices increased by 27.1%, O West’s prices increased by 21.6% and Makadi Heights prices increased by 17.7% from Q1 2021. Real Estate revenues increased by 18.1% to EGP 1.4 bn, compared to EGP 1.2 bn in Q1 2021.

Total real estate portfolio receivables also rose by 34.2% to EGP 17.2 bn by the end of Q1 2022, compared to EGP 12.8 bn in Q1 2021. Also, real estate cash collections for the period increased by 27.6% to EGP 1.4 bn in Q1 2022 from EGP 1.1 bn in Q1 2021.

Furthermore, hotels’ revenues hiked 173.7% to EGP 260.6 mn in Q1 2022 from EGP 95.2 mn in Q1 2021.

Additionally, the destination management segment continues to sustain its enhanced operational performance and starts the year with a solid set of results, as revenues in Q1 2022 increased by 50.5% to EGP 276.1 mn, compared to EGP 183.5 mn in Q1 2021.