Orascom Development Egypt's (ODE) revenues recorded a solid 52.4 percent increase to EGP 2.33 billion in the first half of 2019 compared to EGP 1.5 billion in the first half of 2018.
According to its earnings release for 1H 2019, gross profit increased by 20.1 percent, reaching EGP 733.8 million, with a margin of 31.5 percent.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 43.8 percent year-on-year, recording EGP 908.1 million, with an EBITDA margin of 39.0 percent, according to the earnings release.
"Cash from operations also increased by 21.2 percent to EGP 468.3 million in 1H 2019, while net debt decreased in 1H 2019 to EGP 2.5 billion compared to EGP 3.3 billion in 1H 2018. Moreover, net profit grew by 113.3 percent to EGP 393.8 million compared to EGP 184.6 million in 1H 2018," the report said.
For its full 2019 outlook, Orascom highlighted that it is targeting top line revenues of EGP 4 billion and an adjusted EBITDA within the range of EGP 1.4 billion to EGP 1.45 billion.
"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 percent growth from EGP 3 billion in FY 2018. EBITDA represents a 22-27 percent growth from EGP 1.1 billion in FY 2018. The Group is also eyeing new real estate net sales of between EGP 6.5 billion and EGP 7 billion compared to EGP 2.3 billion in 2018 capitalising on its first home project 'O West' and building on the positive momentum of El-Gouna and Makadi Heights," it added.