“Orascom’s Strong Q1 Revenues and Operational Performance Despite Currency Effects”

2023-05-15 06:05:05

The Egyptian subsidiary of Urano-Cairo property developer and hotel operator Orascom (ODE) ended the first three months of 2023 with significantly higher revenues and operational performance. But currency effects weighed on net profitability.

Indeed, due to the devaluation of the Egyptian pound, net profit fell by almost a fifth year on year, Orascom said in a statement on Monday.

During the period under review, the company achieved a turnover of 2.95 billion Egyptian pounds (around 86 million francs daily), or 52.8% more than in the first quarter of 2022. Performance was boosted by the highest real estate sales in the group’s history thanks to price increases in all destinations.

Adjusted gross operating surplus (Ebitda) jumped by nearly two-thirds (+61.8%) to 1.17 billion pounds, for a related margin of 39.5%, up 2. 2 percentage points (pp). However, due to a negative currency effect of 477.7 million, net profit contracted by 17.2% to 384 million.

For the rest of the operations, the management of ODE has not set quantified objectives, but intends to remain focused on ‘the expansion of operations, the preservation of profitability and the creation of new value for shareholders’ while by ‘closely following’ the evolution of the market.

The parent company Orascom Development Holding (ODH), listed on the Swiss Stock Exchange, will lift the veil on its quarterly performance on Wednesday.

/ATS

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