Significant increase in sales at Orascom Development

Orascom Development Holding ODH reported that sales increased by 43.3% to 223.0 million. All business segments contributed to the increase, with the real estate segment making the highest contribution, ODH said.

Gross profit increased by 24.6% to 61.7 million from 49.5 million in the previous year. Adjusted Ebitda increased by 19.1% to 41.7 million from 35.0 million in the first half of 2018. Ebitda also increased by 124.6% from 19.5 to 43.8 million. Cash flow from operating activities increased by 86% to 19.9 million (previous year: 10.7 million).

Loss significantly reduced

On the bottom line, ODH posted a net loss of 1.5 million, which is 90.9% less than in the first half of the year, when ODH was still in the red by 16.4 million.

The Group notes that the figures for the first half of 2018 included Tamweel Group and Citadel Azur, Royal and Club Azur hotels, which were sold in 2018. Adjusted for these effects, revenue in the first half of 2019 would have increased by 56.9% to 223.0 million, and net loss would have decreased from 19.1 to 1.5 million.

"We are very pleased with the group's performance to date in the various destinations and are confident that we will achieve the targets we have set for fiscal 2019," said CEO Khaled Bichara. He added that ODH is currently taking numerous initiatives at the various locations to achieve economies of scale more quickly and shorten the path back to profitability.

For the full year 2019, ODH is targeting sales of 400 million and adjusted EBITDA of between 74 and 77 million. Real estate sales of 445 to 470 million are also planned - this would be more than double the 2018 figure of 200.6 million. (ah)