In This Article:
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Revenue Growth: Up 49% in local currency; 24% in CHF.
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Gross Profit: Increased by 61% in local currency.
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Adjusted EBITDA: Up 68% in local currency.
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Net Profit: Decreased by CHF60 million due to currency devaluation and other factors.
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Real Estate Sales: Up 32% overall; El Gouna sales up over 100% in local currency.
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Hospitality Revenue: Flat due to currency devaluation; GOP reached CHF42 million for the year.
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Adjusted EBITDA Margin: Improved to 35% from 34% last year.
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Commercial Assets Revenue: Grew from CHF51 million to CHF57 million.
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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.
Release Date: November 14, 2024
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 a healthy growth in revenues, operating profits, and adjusted net profit for the first nine months of 2024.
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The company achieved a 77% increase in sales in local currency and a 24% increase in hard currency, with total revenue up 49% and gross profits up 61%.
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The real estate segment saw a 32% increase in sales, with a strong deferred revenue balance, indicating future revenue potential.
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The hospitality segment maintained flat revenues despite currency devaluation, with a slight improvement in operating profit and a 35% adjusted EBITDA margin.
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The commercial assets segment showed a 12% topline growth and a 70% increase in profits, highlighting improved profitability and recurring revenue growth.
Negative Points
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The devaluation of the Egyptian Pound against the Swiss Franc and US Dollar resulted in a CHF40 million net profit decrease.
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The FTI bankruptcy led to a CHF9 million impact, and an accounting adjustment for a UAE asset sale resulted in an CHF11 million write-down.
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The company's net profit was negatively affected by foreign exchange adjustments, with a reported decline despite underlying growth.
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Interest rates in Egypt and globally have increased, impacting finance costs and overall profitability.
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Geopolitical tensions in the Middle East pose potential risks to business operations, although no immediate impact was reported.
Q & A Highlights
Q: Is there going to be a dividend for 2024 paid in mid-2025 as mentioned at Investura? A: Ashraf Nessim, CFO: We need to upstream the cash from Egypt to ODH first, either by paying a dividend from Egypt or repaying a shareholder loan. For 2024, paying a dividend from ODH to shareholders might be difficult, but it could be possible by the end of 2025.