Orascom Development Egypt posts record sales growth despite economic challenges

Oluwatosin Racheal Alabi -

Key Points

  • Orascom Development Egypt achieved a 77% year-on-year increase in real estate sales, totaling EGP 23.1 billion ($468 million) in the first nine months of 2024.
  • The company secured a $155 million loan from the International Finance Corporation to refinance liabilities and upgrade hospitality assets.
  • Despite a foreign exchange loss of EGP 2.1 billion ($43 million), ODE's revenues surged by 49.3% to EGP 15.5 billion ($314 million), with net profits increasing by 9.9% to EGP 2.23 billion ($45 million).

Orascom Development Egypt (ODE) achieved EGP 23.1 billion ($468 million) in real estate sales during the first nine months of 2024, marking a seventy-seven percent year-on-year increase despite navigating a challenging economic environment. The company's revenues surged by 49.3 percent to EGP 15.5 billion ($314 million) over the same period, reflecting its robust operational strategy.

While ODE faced a foreign exchange loss of EGP 2.1 billion ($43 million), net profits grew by 9.9 percent to EGP 2.23 billion ($45 million). The hospitality segment was a key driver of growth, with revenues climbing 29.1 percent to EGP 2.9 billion ($59 million) by the end of September 2024.

In the third quarter alone, revenues rose by 26 percent to EGP 5.2 billion ($105 million), with gross profits increasing by 15.8 percent to EGP 1.9 billion ($38.5 million), yielding a gross margin of 36.1 percent.

Strategic financial initiatives boost market standing

To strengthen its liquidity and long-term position, ODE secured a $155 million loan from the International Finance Corporation (IFC) in October 2024. The funds will be used to refinance liabilities and upgrade hospitality assets, including the Mövenpick Resort and Spa in El Gouna, enhancing free cash flow and reducing capital costs.

Earlier in 2024, ODE reported a 65 percent rise in consolidated revenues for the first half, totaling EGP 10.21 billion ($207 million). This growth stemmed from strong performance across its real estate and hospitality segments.

Expansion and market leadership

ODE continued to expand its portfolio, notably through the Makadi Heights project, underpinned by a significant agreement with the Tourism Development Authority. These developments have reinforced ODE’s position as a leading player in Egypt’s real estate and hospitality sectors.

The record-breaking sales figures in 2024 showcase ODE's ability to capitalize on market opportunities and deliver value to stakeholders. Its strategic focus on diversifying offerings and adapting to market conditions underscores its resilience and growth potential.

Future outlook

Orascom Development Egypt’s robust financial performance and strategic initiatives highlight its adaptability and commitment to growth. With strong market fundamentals and continued investment in its core segments, the company is well-positioned to sustain its success and navigate ongoing economic challenges effectively.