Palm Hills Developments recorded EGP 2.9bn in sales during the third quarter (3Q) of 2020, a growth of 42% year-on-year (y-o-y). Growth in sales during the quarter was supported by recovery in home buying transactions following the easing of restrictions and precautionary measures previously imposed in relation to COVID-19, complemented by demand for Ready to Move products, secondary homes on the Mediterranean and Red Sea during the summer season, and an uptake in commercial sales mainly in West Cairo.
Net Profit for the quarter grew 156% y-o-y, reaching EGP 238m, complemented by positive cash flows from operations of EGP 1.1bn.
At the end of September 2020, Palm Hills had Ready to Move inventory worth c.EGP 3.2bn (267 units) across several projects in West Cairo, East Cairo and North Coast. The Ready to Move products are currently in high demand and will help solidify the Company’s financial position further during the coming quarters.
Yasseen Mansour, Chairperson and Group CEO, said that Palm Hills performance witnessed remarkable improvements compared to previous quarters of 2020, despite the current challenging environment. We had a robust summer season in terms of demand for secondary homes on the Mediterranean and Red Sea, given ongoing limitations on international travel and concerns surrounding COVID-19, complemented by the growing demand for Ready to Move products. We closed 3Q 2020 with EGP 2.9bn in new sales, a growth of 42% y-o-y.
“During 9M 2020, the company sold 1,040 units for EGP 7.3bn, which represents a growth of 21% y-o-y, should we remove Palm Hills Alexandria’s EOIs of EGP2.1 billion from 9M 2019 New Sales. In October 2020, we sold units worth EGP 1.9bn and saw strong uptake during the recent Cityscape exhibition, bringing us much closer to our EGP 12bn target for the full year. We delivered 502 units during 9M2020, and we continue to outperform our handover schedule on almost all projects on contractual delivery dates.” Mansour said.
He added, “We were awarded a prime commercial land plot spreading 172,448 sqm (c.41 feddan) in West Cairo through a tender with the Egyptian government. Said plot will give us a sound commercial space to act as a catalyst for recurring income in West Cairo, similar to the 420,000 sqm (100 feddan) of Palm Hills New Cairo in the East. The new plot is strategically located in the heart of the iconic Palm Hills October adjacent to Bamboo project and will be positioned as the new downtown of Palm Hills October.”
Revenue reached EGP 3.5bn during 9M2020, almost buoyant y-o-y. While Revenue for 3Q 2020 grew 39% y-o-y to EGP 1.5bn, compared with EGP 1.1bn during the same period last year