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Orascom Development Holding AG / Key word(s): Miscellaneous/Miscellaneous
Orascom Development Holding AG: has released its consolidated financial results for Q1 2024
21-May-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Ad hoc announcement pursuant to Art. 53 LR.
Orascom Development Holding ("ODH") (SIX ODHN.SW) has released its consolidated financial results for Q1 2024.
During Q1 2024, ODH achieved a strong performance, with real estate sales of CHF 256.7 million, up by 143.1%. Total
revenues increased by 15.7% to CHF 151.5 million despite the challenging business environment.
Key Highlights of Q1 2024
. Total revenues went up by 15.7% to CHF 151.5 million.
. Adj. EBITDA increased by 19.9% to CHF 44.0 million, with a 29.0% margin.
. Adjusted net profit of CHF 26.7 million, up 3.1% vs. Q1 2023.
. Net real estate sales grew by 143.1% to CHF 256.7 million, the highest Q1 sales figure in ODH's history.

. Cash flow from operations back to green to CHF 42.4 million, signaling our operational excellence.

Altdorf, 21 May 2024 - Despite the challenges posed by the ongoing war in Gaza, geopolitical tensions in the Middle
East, and the economic backdrop in Egypt, ODH has demonstrated a solid operational and financial performance in Q1
2024. This is a testament to the strength of our diversified business model, which has enabled the core underlying
business to weather the storm and deliver a robust performance. Our prudent cost management has also supported our
strong operational performance, which has helped mitigate the impact of the challenging economic conditions in Egypt.
We have also maintained a robust balance sheet, with healthy liquidity and strong cash flows, which places us in an
excellent position to pursue future growth opportunities.
Financial Review
Q1 2024:
Despite the unprecedented economic environment and increased global volatility, ODH achieved a solid performance in Q1
2024. Total revenues during Q1 2024 were up by 15.7% to CHF 151.5 million. Gross profit increased by 9.0% in Q1 2024 to
CHF 46.2 million; however, gross profit margin saw a slight squeeze to 30.5% (Q1 2023: 32.4%), given the growing
pressure of material costs caused by the inflationary environment we are facing. The boost in revenues and gross
profit resulted from the acceleration of our construction activities, with real estate revenues reaching CHF 87.4
million, an increase of 13.8% vs. Q1 2023, and the enhanced business performance of our recurring income segments, up
18.5% to CHF 64.1 million in Q1 2024.
ODH's Adj. EBITDA increased by 19.9% to CHF 44.0 million in Q1 2024, with a margin of 29.0%, signaling our operational
excellence. General and administrative expenses decreased by 7.1% to CHF 9.1 million in Q1 2024. Other gains and losses
reported a loss of CHF 62.4 million in Q1 2024, mainly due to a one-off FX translation loss related to the devaluation
of the EGP against foreign currencies. ODH's share of associates reported a loss of CHF 1.2 million vs CHF 7.6 million
in Q1 2023. The lower performance of the company's share in Andermatt Swiss Alps drove performance, resulting in a loss
of CHF 1.7 million in Q1 2024 vs a profit of CHF 7.3 million in Q1 2023, which included one-off transactions. Finance
costs increased by 66.0% to CHF 17.6 million due to the increase in interest rates. Adjusted net income excluding
one-offs (including forex losses or gains and non-operational one-off transactions) reached CHF 26.7 million in Q1
2024, up 3.1% (Q1 2023: CHF 25.9 million). Including the one-offs, the company reported a net loss of CHF 35.7 million
compared to a net profit of CHF 10.5 million in Q1 2023, mainly due to the devaluation of the EGP, which incurred the
company FX loss of CHF 56.9 million during the quarter.
Group Real Estate: Our real estate business has achieved stellar financial and operational results, with net real
estate sales up 143.1% to CHF 256.7 million
In Q1 2024, net real estate sales were up by 143.1% to CHF 256.7 million compared to Q1 2023. This noteworthy growth
trend reflects the industry's steadfastness and resilience in navigating the challenges of prevailing market
conditions. The remarkable increase in net sales indicates the industry's adaptability and ability to thrive under
adverse circumstances, and it presents a positive outlook for the future of the real estate sector. The Egyptian
subsidiary's net real estate sales performance significantly improved during Q1 2024 when measured in EGP. Though this
operational enhancement wasn't fully reflected in ODH's value of contracted units when translated into CHF, it is worth
noting that ODE's net real estate sales have increased by approximately 218.3% compared to Q1 2023 when measured in
local currency to reach EGP 8.8 billion. The increase in sales across all destinations was accomplished by an increase
in average selling prices and the number of units sold, which rose by 111.6% to 696 units compared to Q1 2023.
Real estate revenues experienced an increase of 13.8%, reaching CHF 87.4 million in Q1 2024-additionally, the adj.
EBITDA increased by 8.8% to CHF 32.1 million during the same period. The total deferred revenue from real estate, which
is yet to be recognized, increased by 10.4% to CHF 681.4 million, providing strong visibility on our real estate
revenue across all our destinations over the next 3-4 years.
Group Hotels: Despite the ongoing tension in the Middle East, our hospitality segment exhibited a strong start with a
10.6% increase in revenues, amounting to CHF 44.9 million
Despite the challenging global macro and geopolitical environment, particularly in the Middle East, and the seasonality
effect caused by the holy month of Ramadan, our hotel segment has delivered a strong performance in Q1 2024. Our hotels
have generated revenues of CHF 44.9 million, a 10.6% increase compared to Q1 2023. This revenue growth has pushed our
GOP to CHF 10.3 million, a 1% increase from Q1 2023. This growth has been driven by our hotels' ability to maintain
good occupancy levels and improve our room rates despite the ongoing challenges in the industry. Despite these
challenges, we have maintained a healthy margin and delivered strong financial results, generating Adj. EBITDA of CHF
18.3 million, an increase of 32.6% and a margin of 40.8% vs. 34.0% in Q1 2023. We have also invested in our properties,
including enhancing our facilities and upgrading our technological infrastructure, to ensure we continue offering our
guests the best possible experience. We will continue to monitor the ongoing challenges in the industry and adapt our
strategies accordingly to ensure that we continue to deliver strong financial results and exceptional customer service.
Recurring income commercial assets: Revenues are up 42.2% to CHF 19.2 million, owing to the successful restructuring
implementation and Adj. EBITDA is up by 483.3% to CHF 3.5 million
The commercial assets segment plays a crucial role in financing the Group's growth and shielding our operations against
cyclical slowdowns caused by unforeseeable events. Despite the impact of the Egyptian currency's devaluation, the
commercial assets segment continued to grow significantly. Consequently, the Group secured more recurring revenue
streams, resulting in a 42.2% revenue increase to CHF 19.2 million in Q1 2024. With its consistent growth, the
commercial assets segment is expected to continue to provide a stable source of cash flow, protecting the Group's
operations from any unforeseen economic slowdowns.
Details on Destinations
El Gouna, Red Sea:
New real estate sales grew by 232.7% to CHF 116.1 million in Q1 2024. International sales represented 42% of total real
estate sales during Q1 24 vs. 33% during Q1 23. We increased our real estate average selling price by 25.6% to CHF
4,572/sqm vs. Q1 2023. We have also witnessed a 170.7% uptick in units sold, reaching 111 units vs. 41 in Q1 23. In
EGP, net sales grew by 257.3% to EGP 4.1 billion, while average selling prices were up by 38.2% to EGP 179,565/sqm. On
the construction front, El Gouna intends to deliver 370 units in 2024. During Q1 2024, 86 units were delivered, and the
remaining units will be delivered as scheduled.
Looking at El Gouna's hospitality arm, El Gouna Hotels has continued to thrive despite the challenging market
environment caused by geopolitical tensions and the seasonality effect caused by the holy month of Ramadan. El Gouna
hotel revenues increased by 11.5% to CHF 18.4 million, while in Egyptian currency, total revenues have increased by
34.9%. Compared to last year, our ARRs were up by 10.5% to CHF 84 per night. The occupancy rate for Q1 2024 reached 63%
(Q1 2023: 69%). Foreigners represented 94% of our total hotel occupancy during Q1 2024. On the development side, we are
progressing with the construction process for adding 29 new rooms in Casa Cook El Gouna Hotel by 2024. On the
commercial assets side, we achieved an impressive 45.4% increase in revenue to CHF 15.7 million in Q1 2024. El Gouna's
total revenues were up 8.2% to CHF 71.3 million, while in local currency, total revenues were up by 30.8%.
O West, Egypt:
O West recorded CHF 86.4 million in real estate sales during Q1 2024, a growth of 154.9% vs. Q1 2023. The average
selling price in Q1 2024 stood at CHF 1,856/sqm, a growth of 9.0% compared to Q1 2023. Additionally, we witnessed a
124% uptick in units sold, reaching 280 in Q1 24. In EGP, O West has achieved an impressive 204.3% increase in net real
estate sales, reaching EGP 3.4 billion, with average selling prices up 30.0% to EGP 72,900/sqm. On the development
front, the company plans to hand over more than 1,000 units to clients in 2024. The construction of O West Club is
progressing steadily, and the club will become partially operational during 2024, providing O West with a steady,
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