Orascom Development Egypt (ODE) has delivered a strong set of results in a very challenging year, supported by a 32.3% sales boost in the fourth quarter (Q4) of 2020.
Revenues increased by 30.7% to EGP 1.72bn against the EGP 1.32bn reported in Q4 of 2019. The increase was driven by the accelerated construction pace across all destinations, in addition to the enhanced operational performance in the town management segment of the company’s flagship development El Gouna.
The company’s net profit increased by 4.6% to EGP 213.9m against EGP 204.4m in Q4 2019. Net real estate sales increased by 32.3% to EGP 1.8bn, recording the highest Q4 sales to date.
For fiscal year (FY) 2019/20, Revenues increased by 7.0% to EGP 5.0bn, against the EGP 4.7bn recorded in FY 2018/19, despite the halt in the tourism industry due to the novel coronavirus (COVID-19) pandemic.
“We finished a challenging 2020 with another quarter of sequential improvements financially and operationally,” said the company’s CEO Omar El Hamamsy, “Our results demonstrate the continued strength and relevance of Orascom brand, the success of our business model and the effectiveness of the actions we have taken to quickly adapt to the changes caused by the COVID-19 pandemic.”
He noted that the company’s focus on delivering differentiated solutions drove it to navigate through 2020. ODE’s strong balance sheet put the company in a good position to weather the challenges of 2020 while investing for future growth.
El Hamamsy added, “I am very proud of the way ODE responded to the COVID-19 crisis in 2020, as we quickly focused on liquidity, cost management, and execution, while rapidly innovating and ramping all our products.”
The entered 2021 with a positive momentum following two quarters of sequential improvement, he noted, adding that he is confident ODE is well-positioned for the economic recovery.
He expressed his confidence the company will continue to deliver solid performance for its shareholders, customers, and employees in the short and long term.
“For our hotels, the company focused on cash burn rate management, by formulating cost management strategies for destinations heavily reliant on international tour operators’ business such as Taba Heights,” he added.
ODE also ‘hibernated’ similar properties, and will implement the fast follower strategy by rapidly restoring business when international travel reopens. It also began heavily exploring domestic business, with new product development and distribution targeting Egyptian nationals.