Orascom Development: Sales increase, loss decreases

Orascom Development Holding (ODH) reported revenues of 325.2 million for the first three quarters of the current fiscal year, up 42.7% from the same period last year. Adjusted EBITDA increased from 38.5 million to 57.3 million (+48.8%). Gross profit also increased, climbing by 24.1% to 84.4 million (previous year: 68.0 million).

EBITDA increased by 135.1% to 59 million in the first nine months of 2019, according to Orascom Development. However, it should be noted that EBITDA margins were impacted by the O West project in Egypt, due to sales and marketing costs incurred during the period, the company said. Higher margins from O West would start to materialize in the coming year. Cash flow from operations increased by 34.5% to 41.7 million. Net debt at the end of September 2019 was 241.7 million.

Net loss declines significantly

Orascom Development continues to report a decrease in net loss from 29.7 to 7.9 million (-73.4%).

In this regard, the company points out that the figures from the same period last year also include Tamweel Group, Citadel Azur, and Royal and Club Azur Hotels, which were sold in fiscal 2018. If normalized accordingly, revenue would have increased by 55.5% and adjusted Ebitda by 48.8% in the first nine months of 2019. Net loss would have decreased by 76.7%.

For the full year 2019, Orascom Development ODH is targeting revenues of 400 million and adjusted EBITDA of 74 to 77 million. (ah)