Orascom Development Egypt has released its consolidated financial results for 2020, Invest-Gate reports.
Orascom delivers a strong set of results in a very challenging year supported by a 32.3% sales boost in Q4 2020. FY 2020 revenues reached EGP 5 bn, net profits of EGP 571.3 mn, and a cash balance of EGP 2.1 bn, according to a company press release on March 23.
Revenues are increased by 30.7% to EGP 1.72 bn vs. EGP 1.32 bn in Q4 2019. Operating EBITDA jumped by 45.1% to EGP 470.2 mn, with a 27.3% margin vs. EGP 324.1 mn in Q4 2019 and a margin of 24.6%. Net profit is increased by 4.6% to EGP 213.9 mn vs. EGP 204.4 mn in Q4 2019. Net real estate sales are increased by 32.3% to EGP 1.8 bn recordings the highest Q4 sales to date, the statement reads.
On his part, CEO Omar El Hamamsy, adds, “I am very proud of the way ODE responded to the Covid-19 crisis in 2020. We quickly focused on liquidity, cost management, and execution, while rapidly innovating and ramping all our products. We entered 2021 with a positive momentum following two-quarters of sequential improvement. I am confident we are well-positioned for the economic recovery and will continue to deliver solid performance for our shareholders, our customers, and our employees in the short and long term.”
Moreover, revenues for Q4 2020 have reached EGP 1.72 bn, up by a remarkable 30.7% vs. Q4 2019 and 28.3% vs. Q3 2020. The increase is driven by the accelerated construction pace across all destinations. Orascom closed FY 2020 with total consolidated revenues of EGP 5 bn, up 7% year-on-year (y-o-y) despite headwinds from the prevailing Covid-19 pandemic affecting our hospitality business segment. Real estate revenues reached EGP 3.3 bn, growing by a sizeable 37.3% y-o-y, supported by the speeding of the construction activities across all our destinations. Gross profit increased by 5.6% to EGP 1.41 bn in FY 2020 (FY 2019: EGP 1.34 bn), the statement continues.
Likewise, the company continues its positive sales pacing in Q4 2020. New sales reached EGP 1.8 bn, a growth of 32.3% compared to EGP 1.4 bn in Q4 2019 and a 17.3% increase over the EGP 1.5 bn reported in Q3 2020. Growth in sales during the quarter was supported by a recovery in home buying transactions following the easing of restrictions and precautionary measures imposed concerning Covid-19, an increase in the secondary homes demand on Red Sea area, the statement reads.
Regarding the group hotels, operational and financial results of the company’s hotel segment during FY 2020 have been significantly impacted by the outbreak of the Covid-19 pandemic. The pressure on the segment continued throughout Q4 2020 on the back of weak international travel.