MNHD closes the year with record-breaking gross contracted sales exceeding EGP 11.0 billion and doubles its revenue year-on-year to EGP 5.2 billion on the back of new project launches and significant increases in unit deliveries during the year
Cairo, 26 February 2023 – Madinet Nasr for Housing & Development (“MNHD” or “the Company”), one of Egypt’s leading urban community developers, announced on 26 February 2023 its standalone financial results for the year ended 31 December 2022 (FY 2022), reporting a net profit of EGP 747.4 million on total revenue of EGP 5,155.3 million. The Company reported a net profit of EGP 202.5 million for the quarter ended 31 December 2022 (Q4 2022), booking a top line of EGP 2,154.0 million.
Key Highlights
MNHD achieves record-breaking gross contracted sales of EGP 11,236.0 million for FY 2022, up by 224.4% y-o-y driven by new project launches at Taj City and Sarai during the year. Gross contracted sales reached EGP 3,694.8 million in Q4 2022, an increase of 325.1% y-o-y. Furthermore, the newly acquired subsidiaries – Minka and EgyCan – generated EGP 1,175.5 million in contracted sales which were not consolidated in MNHD’s results for the year.
The Company delivered a total of 2,070 units during FY 2022, an increase of 101.0% y-o-y versus the 1,030 units delivered for FY 2021. In Q4 2022, MNHD delivered a total of 957 units, up by 108.0% y-o-y.
Revenue recorded EGP 5,155.3 million for FY 2022, up by 145.8% y-o-y, on the back of strong gross contracted sales growth and unit deliveries doubling during the year. MNHD booked EGP 2,154.0 million in revenue for Q4 2022, an increase of 173.4% y-o-y.
Gross profit came in at EGP 1,996.5 million in FY 2022, climbing 170.5% y-o-y. MNHD’s gross profit margin increased from 35.2% in FY 2021 to 38.7% in FY 2022 due to an increase in income from installment sale interest. In Q4 2022, gross profit came in at EGP 765.7 million, up by 608.9%, yielding an improved gross profit margin of 35.5% against the 13.7% booked in Q4 2021 on the back of a 267.8% y-o-y increase new sales.
MNHD booked an EBITDA of EGP 1,355.7 million for FY 2022, a 153.0% y-o-y increase. The EBITDA margin came in at 26.3% for the year, against a margin of 25.5% recorded one year previously, despite the increase in revenue from unit deliveries. In Q4 2022, EBITDA recorded EGP 487.0 million, up by 355.7%, yielding a margin of 22.6% against the 13.6% booked for Q4 2021.
The Company recorded a net profit of EGP 747.4 million for FY 2022, up by 164.5% y-o-y with an associated net profit margin of 14.5% against the 13.5% booked for FY 2021. Net profit came in at EGP 202.5 million for Q4 2022, up by 710.1%, yielding a net profit margin of 9.4% compared to 3.2% in FY 2021 as bottom-line results benefitted from a rapid increase in revenue in Q4.
Net debt stood at EGP 1,485.1 million at year-end 2022, marking a decrease of 43.6% from the close of FY 2021, in line with MNHD’s strategy to optimize efficient utilization of borrowing to support growth and manage financial risk. The net debt/EBITDA ratio booked 1.1x for the period, down from 4.9x at year-end FY 2021.
Total notes receivable recorded EGP 3,950.1 million as at 31 December 2022, up by 14.6% from year-end 2021, yielding a receivables/net debt ratio of 2.7x for FY 2022, up from 1.3x at the close of FY 2021.
Net cash collections booked EGP 3,564.0 million in FY 2022, up by 21.3% y-o-y. In Q4 2022, the Company made net cash collections of EGP 1,030.4 million, up 42.1% y-o-y.
MNHD deployed EGP 1,800.7 million in construction and infrastructure CAPEX during FY 2022, compared to the outlay of EGP 2,385.9 million in FY 2021 following the completion and delivery of several construction projects. The Company made CAPEX outlays of EGP 459.9 million in Q4 2022, almost at par with the EGP 466.3 million deployed in Q4 2021.
I am delighted to report on what has been an exceptional year for MNHD. We embarked on a journey of reinvention and change at the start of the year and the stellar results achieved since demonstrate the validity of our new growth strategy and vision.
We achieved record-breaking gross contracted sales crossing the EGP 11.0 billion mark in FY 2022, an increase of over three-folds year-on-year. Despite a challenging operating environment, we pushed ahead with our growth plans and launched three projects at Taj City during 2022. While inflationary pressures have generally hindered consumer purchasing power, it benefitted MNHD as people resorted to the real estate market to safeguard their financial interests. The new projects saw record reservation figures, boosting total gross contracted sales for the year and further illustrating strong demand for our unique value proposition. Our Company is in an enviable position given its strategically located and liability free undeveloped land bank, which secures years of sales and provides stability for the business moving forward.
Furthermore, we achieved our target of doubling deliveries in FY 2022 to reach 2,070 units, of which over 70% were handovers in Sarai. Ontime delivery has amplified homebuyers’ trust and confidence in our ability to navigate challenges and remain on track. Operational achievements reflected positively on financial results with revenue growing 145.8% y-o-y to record EGP 5.2 billion and net profit more than doubling year-on-year to EGP 747.4 million with an associated margin of 14.5% in FY 2022. Moreover, ongoing portfolio optimization efforts led to turnaround results including a lower delinquency rate, lower cancellations as a percentage of sales and higher cash collection.
Our vision of building and delivering sustainable urban communities involves collaborating with likeminded partners. On that front, we continue expanding our strategic partnerships to add value to our communities and support our growing project pipeline. Towards the end of 2022, we signed a partnership agreement with DMC to undertake construction projects in Taj City and a contract with Madkour Utilities to become the distribution systems operator in Sarai. Our partners are helping us deliver on our commitment to build integrated communities that enrich homeowners’ lives and create long-term value for our shareholders.
Moving forward, we are exploring several expansion opportunities and looking to diversify our revenue streams. In this regard, we intend on expanding beyond Cairo and being more active in the commercial space starting with the launch of Kinda Offices at Taj City. In addition, for the first time in Egypt, we introduced a unique investment opportunity through fractional property ownership at The Hoft in Taj City, a hybrid property that includes serviced apartments, administrative offices, co-working spaces and a commercial plaza.
2022 was a transformation year for our Company that yielded noteworthy results. We look forward to carrying forward the momentum into 2023 as we continue to deliver on our growth strategy with operational and financial results that set us apart from the competition and differentiate our communities. We are confident in our approach and optimistic about a new era for our Company.