Egypt's ODH posts $1.5m net loss as revenues jump by 43% in H1 2019
First-half net sales growth driven by projects such as O West, El Gouna, Makadi Heights, Hawana Salalah, and Luštica Bay
Orascom Development Holding (ODH), the Six Swiss Exchange-listed Egyptian real estate developer of hotels, residential, and leisure projects, reported a net loss of $1.5m for the first half of 2019, despite revenues growing 43.3% to reach $228.8m in the same period.
In a statement, the developer said that net loss for H1 2019 reduced by 90.9% compared to $16.8m in the same period last year.
In H1 2019, gross profit at the development firm increased 24.6% to reach $63.3m from $50.8m in the first half of 2018.
The company’s adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) in the first six months of 2019 jumped by 19.1% to reach $42.8m from $35.9m in 1H 2018.
Ebitda margins were affected by the sales and marketing launch expenses for O West, ODH’s first residential project in Egypt.
Revenues from the developer’s hotel business continued to grow in the first six months of 2019 on the back of improved performance witnessed in the Egyptian tourism sector since the beginning of the year, as well as ODH's hotels in Oman.
Net real estate sales in H1 2019 grew by 188.6% to $292m compared to $101.2m in the first half of 2018, driven by the increase in unit sales from projects such as O West, Makadi Heights, Hawana Salalah, Luštica Bay, and El Gouna.