Orascom Development Egypt real estate sales grew 253.4% to EGP 4.2bn, its revenues by 52.4% to EGP 2.33bn and net profit by 113.3% to EGP 393.8m in the first half of 2019 (1H 2019), the company revealed on Tuesday.
Net profit grew by 113.3% to EGP 393.8m up from EGP 184.6m in 1H 2018. However, 1H 2018 figures included Tamweel Group, Royal and Club Azur Hotels that were disposed in Q4 2018.
“When figures of 1H 2018 are normalised, revenues would have increased by 77.2% to EGP 2.33bn in 1H 2019 vs. EGP 1.3bn in 1H 2018; while net profit would have increased by 177.7% to EGP 393.8m. We are very pleased to see that ODE is continuing its solid stance and continues to be on track to achieve 2019 targets”, states CEO Khaled Bichara.
According to the statement, ODE is targeting topline revenues of EGP 4bn in 2019. These estimates exclude the contribution of Royal Azur and Club Azur hotels and Tamweel Group that the Group has identified as non-core assets and disposed in 2018. Thus, when FY 2018 figures are normalised for those assets, the targeted 2019 revenues represent a 33% growth from EGP 3 billion in FY 2018 and the Adj, the statement adds.
Furthermore, the Group is also eyeing new real estate net sales of EGP 6.5bn – EGP 7bn compared to EGP 2.3bn in 2018.
Sara El Gawahergy , Head of Investor Relations and Strategic Project Management, told Daily News Egypt that the strong growth in sales will be supported by the sales on project “O West”, and building on the positive momentum of El Gouna and Makadi Heights.
Moreover, the total contracted real estate sales of “O West” project reached EGP 2.8bn in 1H 2019. ODE is planning to launch a new high-end real estate apartment phase with a total inventory of EGP 650m in September of this year.
Sarah confirmed that the company opened Cook’s Club Hotel, El Gouna (144 rooms) in in the middle of this month, and This will be followed by the opening of Casa Cook, El Gouna (100 rooms) in October 2019.