Orascom: Currency loss dampens half-year results
Orascom Development Holding was able to increase its revenue in the first half of 2023, mainly due to strong growth in the hotel business. However, there was a high exchange rate loss.
Orascom Development Holding (ODH) kept its revenue and gross profit almost stable in the first half of the year: Revenue amounted to CHF 265.9 million (-1.7% compared to the previous year) and gross profit was CHF 80.2 million (previous year: CHF 79.5 million). This was announced by the hotel and real estate group when it presented its half-year results.
Hotel sales developed particularly positively. It increased by almost a third from CHF 60.6 million to CHF 80.3 million. However, this could not fully offset the decline in real estate sales. This fell to CHF 153.9 million in the first half of the year (previous year: CHF 173.5 million; -11.3%). Total deferred revenue from real estate not yet recognized until 2027 amounted to CHF 662.0 million in the reporting period (previous year: CHF 797.5 million).
Adjusted EBITDA amounted to CHF 70.8 million (previous year: CHF 66.5 million; +6.5%), and the adjusted EBITDA margin increased to 26.6% in the reporting period compared to 24.6% in the first six months of the previous year.
Other gains and losses recorded a minus of CHF 14.1 million, of which CHF 9.3 million is attributable to an exchange rate loss, mainly due to the devaluation of the Egyptian pound.
Decline in profits at Andermatt Swiss Alps
ODH received a significantly lower profit from associated companies. It amounted to CHF 4.0 million after CHF 9.4 million in the previous year. This was due to the lower performance of the investment in Andermatt Swiss Alps, according to ODH. The company made a profit of CHF 2.3 million in the first half of the year, well below the previous year's figure of CHF 6.9 million. This is due to the fact that the company did not sell any land in the first half of 2023.
Financing costs also rose sharply, climbing by a good 30% to CHF 22.9 million (previous year: CHF 17.6 million). ODH cites the rise in interest rates and new debt in the O West project as the reasons for this.
At CHF 17.7 million, net profit in the first half of the year was CHF 3 million below the previous year's figure of CHF 20.7 million. Adjusted for one-off effects, net profit amounted to CHF 31.8 million, according to the company. (ah)
