ODH: Revenue and profit fall in the first nine months of 2023
The real estate developer has been hit particularly hard by exchange rate effects and the rise in interest rates.
Orascom Development Holding (ODH) generated revenue of CHF 422.8 million in the first nine months of the current year, which is CHF 8.0% less than in the same period last year. According to ODH, the reason for the decline is currency translation. In particular, the devaluation of the Egyptian pound had a negative impact - although the operating performance in Egypt had improved. A land sale in El Gouna and the increase in sales in the hotel segment partially compensated for the decline in other business segments, particularly in the real estate segment.
Adjusted EBITDA fell by 6.4% to CHF 113.3 million (previous year: CHF 121.1 million), but the adjusted EBITDA margin improved slightly from 26.4% to 26.8%.
Other gains and losses were down CHF 11.2 million, which according to ODH was mainly due to an exchange rate loss caused by the devaluation of the Egyptian pound. Investments in associates recorded a loss of CHF 0.2 million - following a profit of CHF 11.0 million in the previous year. The decline was mainly caused by the lower performance of the investment in Andermatt Swiss Alps, explains ODH.
Financing costs rose sharply: they increased by 31.0% to CHF 35.9 million due to rising interest rates.
Gross profit amounted to CHF 125.9 million with a gross margin of 29.8% (previous year: CHF 142.1 million, gross margin of 30.9%). Net profit amounted to CHF 27.8 million (previous year: CHF 33.6 million) and adjusted net profit to CHF 39.0 million. (ah)
