Orascom Development Egypt successfully executed on its strategy, with results staying strong operationally and financially for the year 2019 Revenues reached EGP 4.7 billion in FY 2019, a growth of 38.8% compared to EGP 3.3 billion in FY 2018 and surpassing our revenue target of EGP 4.0 billion by 16%. Gross profit up by 1.3% to EGP 1.34 billion (FY 2018:  EGP 1.32 billion).  Adj. EBITDA stood at EGP 1.38 billion, 1.1% increase vs. (FY 2018: EGP 1.36 billion) and within our full year guidance. The company’s EBITDA for FY 2019 came in at EGP 1.65 billion, up 13.6% y-o-y compared to EGP 1.45 billion in FY 2018.  Net profit increased by an impressive 41.1% to EGP 705.6 million vs. EGP 500.2 million in FY 2018 (reported) implying a net profit margin of 15.1%

 

Margins were affected by O West, our first home project in Egypt, due to the upfront sales and marketing expenses incurred during the period.  In addition to the appreciation of the EGP against the USD and EURO, which also affected our hotels segment’s profitability margins in 2019. Nevertheless, the appreciation of the EGP against the USD has had a net positive impact on our P&L since 80% of our debts are in foreign currency. Our debt balance decreased by 22.5% to reach EGP 3.3 billion in FY 2019 vs. EGP 4.2 billion in FY 2018. The Group was able to generate more savings in its finance costs in Q4 2019, whereby interest costs decreased by 16.4% to EGP 422.2 million in FY 2019 vs. EGP 505.3 million in FY 2018 and we continued to generate positive cash flows from operations, recording a 48.8% increase to EGP 1.2 billion vs. EGP 826 million in FY 2018

It is worth mentioning that FY 2018 figures included Tamweel Group, Royal and Club Azur Hotels that were disposed in Q4 2018. When figures of FY 2018 are normalized, revenues would have increased by 53.8% to EGP 4.7 billion in FY 2019 vs. EGP 3.0 billion in FY 2018, Adj. EBITDA would have increased by 13.2% vs. EGP 1.2 billion in FY 2018 and net profit would have increased by 61.2% to EGP 705.6 million vs. EGP 437.7 million in FY 2018