Orascom back in the black
Orascom Development Holding reports significant growth in sales and Ebitda for the first half of 2022. With a net profit of CHF 20.7 million, the company returns to profitability.
The Orascom Group's business has recovered significantly in recent months, according to the company. The reasons are the continuing high demand for real estate and the improved occupancy rate of the hotels, the company of Samih Sawiris says.
In the first half of the year, Orascom Development Holding (ODH) achieved total revenues of CHF 270.5 million (PY: 225.7 million; +19.8%). Gross profit climbed from CHF70.5 million to CHF79.5 million (+12.88%), and the gross margin reached 29.4% in H1 2022. Adjusted Ebitda increased to CHF66.5 million (prev. yr.: 58.0 million), and Ebitda increased from CHF49.2 million to CHF63.7 million. The bottom line is a net profit of CHF 20.7 million compared to CHF 5.2 million in the same period of the previous year.
Profit in Andermatt
The investment in Andermatt Swiss Alps performed well: according to ODH, it reported a profit of 6.9 million in the first half of 2022, compared with a loss of 6.8 million in the same period of the previous year. Here, net property sales reached CHF 88.9 million in the first half of the year (previous year: CHF 93.1 million), and sales increased from CHF 31 million to CHF 65.7 million.
The hotels in Andermatt were 56 percent occupied during the reporting period, with the Chedi Andermatt achieving an occupancy rate of 71 percent and the Radisson Blu Hotel Reussen reaching 50 percent, ODH said. Total hotel revenue of CHF 29.1 million was slightly below the previous year's figure of CHF 30.6 million. Andermatt's total revenue rose by almost a quarter to 94.8 million (previous year: 76.3 million).
Real estate sales increase by ten percent
The Group's real estate sales reached CHF 306.6 million in the first half of the year, a good ten percent more than in the previous year. Sales increased by 1.3% to 173.5 million CHF. ODH reports that average sales prices per square meter were further increased in all destinations. Real estate income for the reporting period was CHF 173.5 million (PY: 171.2 million; +1.3%).
In the hotel business, sales rose significantly from CHF 26.9 million to CHF 60.6 million - an increase of 125 percent. Gross profit rose from CHF 2.7 million to CHF 18.8 million. Adjusted Ebitda for the segment reached CHF 11.3 million (previous year: CHF -2.2 million).
Despite the economic uncertainties, ODH is confident about its business development for the year as a whole. However, as the situation is very volatile and the outlook is fraught with great uncertainty, the Group is currently refraining from issuing a forecast for the year 2022, the Group states. (ah)
