In This Article:
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Revenue Growth: Total revenues up 49% in local currency; 24% in hard currency (CHF).
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Net Profit: CHF45 million net profit, impacted by CHF60 million due to EGP devaluation, FTI bankruptcy, and UAE asset write-down.
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Adjusted EBITDA Margin: 35% compared to 34% last year.
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Real Estate Sales: Up 32% for the nine months, with O West contributing 29%.
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Hospitality Revenue: Flat for the nine months, with GOP reaching CHF42 million.
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Commercial Assets Revenue Growth: 12% top-line growth, 70% profit growth.
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Cash Flow from Operations: CHF111 million, up from CHF30 million last year.
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Cash Reserves: CHF180 million in banks.
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Bond Refinancing: Successfully issued a new bond to refinance CHF100 million maturing bond.
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Debt Rescheduling: 2.5-year grace period with IFC for Egyptian debt.
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Monetization: CHF260 million worth of transactions over the last 3 years, including a recent CHF33 million land sale in El Gouna.
Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Orascom Development Holding AG (XSWX:ODHN) reported healthy growth in revenues, operating profits, and adjusted net profits for the first nine months of 2024.
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The company achieved a 32% increase in real estate sales, with a strong deferred revenue balance.
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The hospitality segment maintained flat revenues despite currency devaluation, with a slight improvement in operating profit.
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Commercial assets showed a 12% top-line growth and a 70% increase in profits, indicating improved profitability.
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The company successfully refinanced a CHF100 million bond and secured a favorable debt rescheduling deal with the IFC, enhancing financial stability.
Negative Points
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The decline in the Egyptian pound (EGP) against the USD and CHF resulted in a CHF40 million net profit decrease.
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The FTI bankruptcy and an accounting adjustment for UAE assets led to a CHF20 million impact on net profits.
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The finance costs increased due to high interest rates in Egypt and globally, affecting profitability.
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The geopolitical tensions in the Middle East pose potential risks to business operations, although no immediate impact was reported.
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The occupancy rate in El Gouna showed a slight decline, raising concerns about potential impacts on the hospitality segment.
Q & A Highlights
Q: Will there be a dividend for 2024 paid in mid-2025 as mentioned at Investura? A: Ashraf Nessim, CFO, explained that the company is working on upstreaming cash from Egypt to Orascom Development Holding (ODH) first, either through dividends from Egypt or by repaying part of a shareholder loan. While discussions with the Board are ongoing, it is unlikely that dividends will be paid in 2024, but it might be possible by the end of 2025.