Orascom Development Egypt (ODE) (EGX: ORHD.CA) has released its consolidated financial results for the first quarter of 2025

Cairo, 14 May 2025 :

ODE began the year on a strong note, marked by outstanding performance across all key financial indicators.

• Revenues surged by 54% to EGP 6.4 billion, while Adjusted EBITDA more than doubled, soaring by 116% to EGP 3.4 billion.
• Net profit also delivered robust results, reaching EGP 2.0 billion.
• Key Highlights of Q1 2025 vs. Q1 2024
  Total revenues increased by 54.3% to EGP 6.4 billion.
• Adj. EBITDA grew ahead of revenue, increasing by 115.5% to EGP 3.4 billion in Q1 2025, with a margin of 52.7% vs. 37.7% in Q1 2024.
• Recorded a net profit of EGP 2.0 billion vs. a loss of EGP 1.0 billion in Q1 2024.
• The hospitality segment has experienced an outstanding performance, with revenues increasing by 68.4% to EGP 1.2 billion, notwithstanding the effects of seasonality.
• Revenues from recurring business in Q1 2025 increased by 59% to EGP 2.1 billion compared to Q1 2024.
• The cash balance remained strong, reaching EGP 7.6 billion, and foreign currency cash stood at USD 80.2 million.
• Cash flow from operations reached EGP 1.8 billion.
• Net real estate sales reached EGP 4.1 billion.

Financial Review:
Q1 2025:
ODE commenced 2025 with strong financial results, demonstrating a remarkable resilience in a challenging economic landscape.

The company reported total revenue of EGP 6.4 billion for Q1 2025, reflecting a substantial year-on-year increase of 54.3%.

This growth trajectory underscores the effectiveness of our strategic initiatives and the robustness of our business model.

In parallel, the gross profit exhibited a significant upsurge, rising by 130.2% to reach EGP 3.3 billion.

The increase in GOP outpaced revenue growth, resulting in an improved gross profit margin of 50.7%, which is markedly higher than the margin of 34.0% achieved in Q1 2024.

The enhancement in revenues and gross profit can be attributed primarily to the superior performance of our recurring income segments, including hotels and commercial assets.

These segments witnessed a compelling increase of 58.9%, contributing EGP 2.1 billion to revenue in Q1 2025.

Additionally, our results benefited from the recognition of EGP 1.6 billion derived from the land sale in El Gouna, a transaction executed in late 2024 with Hassan Allam.

This significant sale not only bolstered our revenue but also highlighted the value of our strategic asset management.

Adj. EBITDA expanded by 115.5% to reach EGP 3.4 billion, underscoring our commitment to operational excellence.

This increase resulted in a margin of 52.7%, representing a substantial improvement compared to the 37.7% margin recorded in Q1 2024, which reinforces our effective cost management practices.

The other gains and losses reported a loss of EGP 112.8 million, compared to a loss of EGP 2.4 billion in Q1 2024.

This improvement is primarily attributed to the stabilization of the Egyptian Pound following its earlier devaluation in 2024, which had adversely impacted our financial outcomes in the prior period.

Furthermore, our finance costs decreased by 5.9%, amounting to EGP 409.3 million in the first quarter of 2025.

As a result of these positive developments, our net profit reached EGP 2.0 billion in Q1 2025, representing a dramatic contrast to the net loss of EGP 1.0 billion incurred during the same period last year.

Overall, these strong results are a testament to our strategic direction and the effectiveness of our operational execution in a fluctuating economic environment.

Group Real Estate Segment: Real estate sales reached EGP 4.1 billion, primarily due to the limited number of launches during the period.

The real estate deferred revenue balance increased by 38%, providing strong visibility of our real estate revenue across all our destinations over the next four years.

ODE sold 131 units during the first quarter of 2025, generating net contracted sales of EGP 4.1 billion (compared to EGP 8.8 billion in Q1 2024).

Approximately 43% of sales are primarily from international markets. The drop in sales is primarily attributable to the limited launches in Q1 2025 compared to Q1 2024, as the company temporarily halted sales at the beginning of 2025 across O West and Makadi Heights, revisiting sales prices.

Despite that, we have witnessed a healthy demand for the limited launches released during the quarter. We will continue to bring forward new releases across all our destinations throughout the year, as we closely monitor the macroeconomic environment, the latest market trends, and their impact on our pricing strategy.
Going forward, ODE will periodically review its selling prices as it seeks to balance maximizing sales with managing cost inflation risk in the current inflationary environment.

El Gouna is the group’s largest contributor to sales, accounting for 74%, followed by O West at 15%, and finally Makadi Heights at 11%. Our real estate revenue has decreased by 2.7% to EGP 2.8 billion.

The slight decline in revenues can be attributed to the drop in revenue from the O West project. This decline occurred as priority was given to the timely delivery of the first phase of apartments to clients, which impacted overall revenue.

However, revenues are likely to rise in the upcoming quarter, aligning with a strategic initiative to accelerate the pace of construction activities. Additionally, Adj. EBITDA reached EGP 1.2 billion, with a margin of 43.2%.

Our real estate cash collections amounted to EGP 3.4 billion.

Furthermore, the total deferred revenue from real estate, which will not be recognized until 2029, has increased by 38.1% to EGP 38.6 billion, providing strong visibility into our real estate revenue across all our destinations over the next 3-4 years.

Meanwhile, total real estate receivables, including off-balance sheet, stood at EGP 51.9 billion in Q1 2025 compared to EGP 37.4 billion in Q1 2024, up by 38.9% y-o-y.

Group Hotels Segment:

Our hotel segment had an outstanding start despite the turmoil in the Middle East, with revenues up by 68% to EGP 1.2 billion.

Despite the challenging global macro and geopolitical environment, particularly in the Middle East, our hotel segment delivered impressive financial and operational performance across all metrics during the first quarter of 2025.

Our hotels demonstrated remarkable financial and operational resilience in the first quarter of 2025, achieving record revenues that surged 68% to EGP 1.2 billion, the highest first-quarter figure in the company’s history, compared to EGP 698.8 million in Q1 2024. The GOP reached EGP 601.0 million, reflecting a robust 63.2% increase from the previous year, meanwhile, Adj. EBITDA soared to EGP 554.7 million, up 93.8% from EGP 286.2 million in Q1 2024, with an impressive margin improvement to 47.1%, up from 41.0%. Despite being impacted by the Holy Month of Ramadan in March 2025, we successfully maintained high occupancy rates and improved average room rates, showcasing our ability to adapt and thrive.

This stellar performance underscores the company’s commitment to enhancing the guest experience through strategic investments in property upgrades and technological advancements, as it remains dedicated to navigating ongoing industry challenges and ensuring exceptional service and sustained financial success.

Recurring commercial assets segment; continual improvement in operations, with revenues up 49% to c. EGP 1.0 billion and Adj. EBITDA is up by 52% to EGP 361.4 million with a margin of 38%.

The commercial assets segment remains a dependable source of cash flow in financing the group’s growth while protecting against cyclical slowdowns resulting from unforeseen events.

Total revenue derived from our commercial assets has shown significant growth, increasing by 48.5% to reach EGP 950.9 million, compared to EGP 640.3 million in Q1 2024.

Adj. EBITDA has increased at a rate exceeding revenue, reflecting our operational excellence, which is attributable to the successful implementation of restructuring initiatives that have enhanced the quality and profitability of our services and amenities.

Adj. EBITDA rose by 52.3% to EGP 361.4 million, resulting in a margin of 38.0%, up from 37.1% in Q1 2024.

This upward trend underscores our strategic focus on maximizing efficiency and reinforces our commitment to delivering sustainable value to our stakeholders.

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