Madinet Misr, Egypt’s leading developer of modern urban communities, announced its standalone financial results for the first half of 2024 (ending June 30, 2024), with revenues reaching EGP 4.3 billion and net profit reaching EGP 1.5 billion during the period.
In the second quarter alone, revenues rose to EGP 1.3 billion and net profit rose to EGP 281.3 million during the same period.
Key Highlights
Contractual sales set a new record, quadrupling to EGP 20.9 billion during the first half of 2024. The company recorded a significant increase in unit sales at an annual rate of 172.1% to reach 2,871 units across various projects during the first half of this year compared to 1,055 units during the same period last year.
· Delivering 280 units during H1 2024, a 41.5% YoY decline compared to 479 units during the same period last year, as the company focuses on completing construction work on Taj City and Sarai projects.
Revenues increased by 95.8% YoY to EGP 4.3 billion during H1 2024, driven by strong growth in total contracted sales. During Q2 2024, revenues reached EGP 1.3 billion, an 11.2% YoY increase.
Gross profit increased by 143.4% YoY to EGP 3.4 billion during H1 2024, accompanied by an increase in the gross profit margin to 77.9% compared to 62.7% during the same period last year, driven by higher revenues from sales of new units with high profit margins compared to revenues from delivery of units with relatively lower profit margins. During the second quarter of 2024, gross profit increased by 18.2% YoY to EGP 945.4 million. This was accompanied by an increase in the gross profit margin to 71.8% compared to 67.5% during the same period last year.
Operating profit before deducting taxes, interest, depreciation and amortization increased by 122.9% YoY to record EGP 1.9 billion during the first half of 2024, and the operating profit margin increased to 45.2% compared to 39.7% during the same period last year. During the second quarter of 2024, operating profit before deducting taxes, interest, depreciation and amortization decreased by 13.8% YoY to EGP 373.9 million due to higher expenses following the increase in interest rates.
Net profit increased by 149.4% YoY to EGP 1.5 billion during the first half of 2024. This was accompanied by an increase in the net profit margin to 33.9% compared to 26.6% during the same period last year. During the second quarter of 2024, net profit stabilized at EGP 281.3 million without a significant annual change, while the net profit margin recorded 21.4% during the second quarter of 2024, compared to 23.7% during the same period last year.
· Madinet Misr enjoys a strong financial position in light of recording zero net borrowing in parallel with recording net cash balances of EGP 1.3 billion. The ratio of net borrowing to operating profits before deducting taxes, interest, depreciation and amortization recorded (0.36) as of June 30, 2024, compared to 0.02 at the end of December 2023.[1]
· The balance of receivables decreased to EGP 3.1 billion as of June 30, 2024, compared to EGP 4.0 billion at the end of fiscal year 2023. This resulted in a decrease in the ratio of receivables to net borrowing to record (2.16) during the second quarter of 2024, compared to 113.40 at the end of fiscal year 2023. Total receivables (which include post-dated checks for sales of undelivered units) amounted to EGP 43.8 billion at the end of June 2024, compared to EGP 29.8 billion at the end of December 2023.
· Cash receipts from customers amounted to EGP 6.0 billion during the first half of 2024, an annual growth rate of 209.0%.
· Total investments in construction and infrastructure works in existing projects amounted to EGP 1.8 billion during the first half of 2024, compared to EGP 925.5 million during the same period last year, on the back of construction works in the Taj City and Sarai projects. During the second quarter of 2024, the value of investments in construction and infrastructure works in existing projects amounted to EGP 737.5 million, compared to EGP 413.4 million during the same period last year.
Abdullah Salam, CEO and Managing Director of the company, expressed his pride in the strong performance achieved by Madinet Misr at the end of the first half of this year, including recording strong financial and operational results with significant progress in achieving the goals of its growth strategy and paving the way for achieving more successes in the future. These achievements confirm our unwavering commitment to innovation, quality and sustainable growth despite the ongoing difficult market challenges.
The period witnessed Madinet Misr continuing to achieve its strategic vision, supported by the efforts of the talented team who constitute the central pillar of the company’s strong results. During the first half of 2024, we prioritized the development of sales and revenues through the launch of new projects and phases. Against this backdrop, we succeeded in recording contractual sales of EGP 20.9 billion during the period, which in turn was reflected in supporting the growth of financial results to record levels in line with the ambitious goals adopted by the management. Revenues increased by an annual rate of 95.8%, recording EGP 4.3 billion during the period. Net profit also increased to EGP 1.5 billion, an annual increase of 149.4%. On the operational level, we succeeded in launching new phases and projects in “Taj City” and “Sarai” that witnessed remarkable demand in the market, confirming our customers’ confidence in the superior quality we provide in all our projects. On this occasion, the management expresses its pride in launching our new project “Tajed”, as it is the first
Abdallah Salam, CEO and Managing Director of the company, expressed his pride in the strong performance achieved by Madinet Misr at the end of the first half of this year, including recording strong financial and operational results with significant progress in achieving the objectives of its growth strategy and paving the way for achieving more successes in the future. These achievements confirm our steadfast commitment to innovation, quality and sustainable growth despite the ongoing difficult market challenges. The period witnessed Madinet Misr continuing to achieve its strategic vision, supported by the efforts of the talented team who constitute the central pillar of the company’s strong results. During the first half of 2024, we placed at the forefront of our priorities the growth of sales and revenues through the launch of new projects and phases. Against this backdrop, we succeeded in recording contracted sales of EGP 20.9 billion during the period, which in turn was reflected in supporting the growth of financial results to record levels in line with the ambitious goals adopted by management. Revenues increased by an annual rate of 95.8%, recording EGP 4.3 billion during the period. Net profit also increased to EGP 1.5 billion, up 149.4% year-on-year.
On the operational front, we successfully launched new phases and projects in “Taj City” and “Sarai” that witnessed remarkable demand in the market, confirming our customers’ confidence in the superior quality we provide in all our projects. On this occasion, the management expresses its pride in launching our new project “Tajed”, as the first integrated commercial area within “Taj City” that combines commercial spaces, retail units and administrative offices.
Finally, as we move into the second half of the year, I renew my optimism about the future prospects, especially as we continue to focus on achieving our strategic priorities of achieving sustainable growth and providing the best customer experience through our unwavering commitment to quality and innovation, in addition to our proactive approach that aims to respond to any market developments with high flexibility.
