Key Points:
- TMG Holding’s Q1 2024 property sales surged 206% to $1.3 billion, driven by Legacy Hospitality’s consolidation and strong regional demand.
- Expansion into Saudi Arabia generated $670.8 million in just 10 days, boosting total bookings to $2.4 billion by May 29.
- Q1 2024 profits soared 220% to $50.1 million, with a robust net cash position of $501 million and an 8.9% debt-to-equity ratio.
TMG Holding, the Cairo-based real estate giant led by Egyptian billionaire Hisham Talaat Moustafa, has reaffirmed its dominance in the sector with record-breaking sales figures in the first quarter of 2024. Its property sales surged by 206 percent, reaching EGP61.8 billion ($1.3 billion) in the first three months of the year, driven by the consolidation of Legacy Hospitality.
A significant portion of this growth is attributed to its successful expansion into Saudi Arabia, which generated over EGP32 billion ($670.8 million) in sales within just 10 working days, underscoring strong regional demand for the company’s properties. This extended into the second quarter, with total bookings surpassing EGP115 billion ($2.4 billion) by May 29.
The group’s revenue for Q1 2024 rose robustly by 53 percent to EGP6.8 billion ($142.4 million), fueled by a 21 percent increase in real estate development and an impressive 114 percent growth in recurring income segments.
Financial strength and profitability
In its earnings release, TMG Holding reported a substantial EGP1.34 billion ($28.09 million) in profits, with net income after tax soaring 220 percent year-over-year to EGP2.39 billion ($50.1 million) in Q1 2024. This remarkable performance was partly driven by the integration of Legacy Hospitality.
The company’s financial health remains robust, maintaining a net cash position of EGP 23.9 billion ($501 million) and a significantly improved debt-to-equity ratio of just 8.9 percent, one of the lowest in the market. In March 2024, TMG Holding’s hospitality arm settled $217 million of foreign currency liabilities, enhancing cash flow and reducing operational risks.
Continued growth and market leadership
Founded in 1974, TMG Holding has cemented its position as a leading force in Egypt’s real estate industry. Under the leadership of Hisham Talaat Moustafa, who holds a 43.16-percent stake in the company, equivalent to 890,633,483 ordinary shares, the conglomerate has witnessed exponential growth, emerging as one of Egypt’s largest real estate holdings.
TMG Holding’s impressive Q1 results highlight its capability to seize market opportunities and deliver strong financial performance. The solid sales pipeline and the strategic integration of Legacy Hospitality position the company for sustained growth in the upcoming quarters.
