Table of Contents
Key Points
- Palm Hills Developments' revenue surged by 58% to $225 million in H1 2024, driven by higher sales and unit handovers.
- Profit rose from $12.54 million to $35.1 million, with margins improving to 16% due to a favorable sales mix.
- Asset base expanded by 27.9% to $1.96 billion, reflecting strategic project launches and development activities.
Palm Hills Developments, a Cairo-based real estate firm led by Egyptian billionaire Yasseen Mansour, delivered a robust financial performance for the first half of the 2024 fiscal year. The company's revenue surged to over $225 million, marking a 58 percent increase from the same period in 2023, driven by a substantial rise in new sales and higher unit handovers.
According to the group's recently published financial results, revenue climbed from EGP6.92 billion ($142.6 million) in H1 2023 to EGP10.94 billion ($225 million) in H1 2024. This was supported by the handover of 626 units across key developments, including Badya, Palm Hills New Cairo, Palm Hills Alexandria, and The Crown, compared to 538 units in the previous year.
Revenue growth drives earnings rise
The significant revenue growth translated into a notable increase in earnings, with the group's profit jumping from EGP608 million ($12.54 million) in H1 2023 to EGP1.7 billion ($35.1 million) in H1 2024. The profit margin improved to 16 percent, up from 9 percent in the previous year, attributed to a favorable sales mix and the handover of higher-margin units.
Yasseen Mansour, Chairman of Palm Hills Developments, commented on the company's financial performance, stating, “In the first half of 2024, we have achieved significant milestones, including surpassing our FY2023 full-year figures in both sales and profitability.”
“This exceptional performance which reflects the trust of our customers and resilience of our brand equity continued during the third quarter, leading to an all-time new sales crossing the EGP110 billion-mark ($2.2 billion) as of Aug. 30, 2024, more than four-fold increase year-on-year,” Mansour added.
Palm Hills expands Egypt’s real estate
Palm Hills, Egypt's second-largest listed real estate firm, is a subsidiary of Mansour Group, the nation's largest conglomerate. Yasseen Mansour holds a 10.17 percent stake in Palm Hills, which focuses on integrated residential, commercial, and resort communities. The company is renowned for its top-tier projects and has a strong investment presence across Egypt.
The company's strategic launch of new projects and ongoing development activities contributed to a 27.9 percent expansion in its asset base, from EGP74.3 billion ($1.53 billion) in H1 2023 to EGP95.03 billion ($1.96 billion) in H1 2024.
Shareholders’ equity also saw a 13.55 percent improvement, rising to EGP13.03 billion ($274.04 million) from EGP11.72 billion ($241.33 million) over the same period. This solid financial performance underscores Palm Hills’ position as a leading player in Egypt's real estate sector.
