Orascom: Red figures despite sales growth
Orascom Development reports a sales increase of more than 33 percent for the first nine months. Nevertheless, the company can only slightly reduce its net loss compared to the previous year.
Operationally, Orascom Development sees itself on track. All business units have achieved good results, the company announced on Monday. Revenue rose 33.4 percent to 227.8 million in the first nine months of 2018 from 170.8 million a year earlier. Gross profit increased 82.3 percent year-on-year from 37.3 million to 68.0 million. Adjusted EBITDA increased disproportionately by 182.7 percent to 45.8 million, corresponding to an adjusted EBITDA margin of 20.1 percent.
Adjusted net loss excluding non-recurring items (excluding foreign exchange losses or gains and non-operating one-time transaction costs) decreased by almost 50 percent from 44.2 million in the previous year to 22.2 million in the reporting period. Reported net loss was 29.6 million in the first nine months compared to 30.3 million in the previous year. Cash flow from operating activities reached 31 million in the first nine months of this year, a good 252 percent more than a year ago.
Through the previously announced sale of three hotels in Makadi and the Tamweel Group, Orascom Development expects total cash proceeds of approximately 44.8 million. This will make it possible to deconsolidate the related debt, the company said. In parallel, the company is working intensively with banks to further reduce debt by the first quarter of 2019, it added. (ah)
