Orascom Development Egypt (ODE) has achieved EGP 4.7bn worth revenues in the fiscal year (FY) 2018/19, a growth of 38.8%, compared to EGP 3.3bn in FY18. The company has surpassed its revenue target of EGP 4bn by 16%.
The ODE said its gross profit was up 1.3% to EGP 1.34bn, compared to EGP 1.32bn in FY18. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for FY19 came in at EGP 1.65bn, up 13.6%, compared to EGP 1.45bn in FY18.
The company’s net profit increased by 41.1% to EGP 705.6m, compared to EGP 500.2m in FY18, implying a net profit margin of 15.1%.
The company has achieved its net sales target of EGP 6.9bn for FY19, a growth of 202.5% over last year, the highest in the company’s history. The contracted units also increased by 179.4% to 1,369 units in FY19.
The company attributed growth in sales to strong demand across the company’s projects. Nevertheless, the Egyptian pound’s appreciation against the US dollar has had a positive impact on profit and loss (P&L), since 80% of the ODE’s debts are in foreign currency. The company’s debt balance decreased by 22.5% to EGP 3.3bn in FY19, compared to EGP 4.2bn in FY18.
Furthermore, the Group’s hotels achieved substantial growth in revenues and operating profits. In FY19, revenues increased by 8.5% to EGP 1.5bn, compared to EGP 1.4bn in FY18.
The hotels division reported a 4.2% growth in gross operating profit to EGP 619.0m in FY19, from EGP 593.9m in FY18. The division’s EBITDA reached EGP 488.2m in FY19, down from EGP 575.3m in FY18.
The FY18 figures were boosted by revenues coming from the disposal of the Royal Azur and Club Azur hotels and the Zahra Luxury Nile Cruisers. After adjusting the comparable period for those extra revenues, FY19 segment revenues would have increased by 13.4%.