the highest in the Company’s history .. Palm Hills Developments new sales surpassed the EGP26.0 billion mark in FY2022
Exceeding the previously announced target of EGP20 billion for the year.. Revenue crossed the EGP13.6 billion mark, an increase of 76% YoY .. Net Profit After Tax & Minority Interest reached an all-time high level of EGP1.25 billion, a growth of 52% YoY
Cairo on March 2, 2023 - Palm Hills Developments S.A.E. ("PHD" or "the Company"), a leading real estate developer in Egypt, announce its consolidated financial and operating results for the financial period ended December 31, 2022. Financial Highlights
Revenue recorded an all-time high level of EGP13.6 billion in FY2022, an increase of 76% YoY. Growth in top line was driven by the YoY increase in new sales of residential and commercial units, coupled with contribution from handed over units and ready to move inventory (completed units) sold and recognized during the period.
Gross Profit grew 71% YoY to EGP4.5 billion in FY2022, a Gross Profit margin of 33%. EBITDA amounted to EGP2.4 billion, a growth of 64% YoY with a margin of 18%.
Net Profit After Tax & Minority Interest booked a new record of EGP1.25 billion in FY2022, an increase of 52% YoY, with a Net Profit margin of 9%.
Net Debt1 amounted to EGP1.5 billion by end of FY2022. The Balance Sheet maintained its healthy position with Total Equity (unadjusted) of EGP9.6 billion and Receivables of EGP33.1 billion, covering Net Debt 22 times. While Net Debt/EBITDA (trailing) stood at 0.6 times. Operational Highlights
New sales (Residential and Commercial) grew 50% YoY to EGP26.0 billion in FY2022, the highest in the Company’s history, compared to EGP17.3 billion in FY2021. Sales growth resulted from the YoY increase in number of units sold by 20% YoY to 4,033 units during FY2022, compared to 3,350 units sold during the comparable period, complemented by the YoY increase in average selling prices across all projects.
Residential new sales grew by 51% to EGP23.1 billion, compared to EGP15.3 billion during FY2021. Commercial new sales gained 44% YoY to reach EGP2.9 billion during FY2022, on the back of ongoing sales in Village Gate Mall, Crown Central, Palm Hills New Cairo and Palmet.
The value of ready to move inventory stood at EGP3.9 billion across a number of projects in West Cairo, East Cairo and North Coast by end of FY2022.
New sales in Badya grew 54% YoY to record EGP6.1 billion in FY2022, where the number of units sold increased by 21% YoY to 1,267 units.
Palm Hills New Cairo exhibited strong growth of 107% YoY in new sales recording EGP4.7 billion, translating into 712 units sold, a remarkable increase of 106% YoY in the number of units sold.
The Company spent EGP3.7 billion on construction activities during FY2022, an increase of 47% YoY, surpassing the full year target of EGP3.4 billion.
A total of 1,787 residential & commercial units were released from construction within livable zones and were ready for delivery by year end, including 1,281 units that were handed over to clients.
Yasseen Mansour, Executive Chairman comments: I am pleased with the announcement of our operational and financial results for the year ended December 31, 2022 where we have delivered record set of results, exceeding pre-COVID 19 performance levels and beating our targets and guidance for 2022 on almost all fronts.
The Company achieved record new sale of EGP26.0 billion in FY2022, a growth of 50% YoY, surpassing FY2022 target of EGP20 billion and 2021 sales level of EGP17.3 billion. Badya, Palm Hills New Cairo, The Crown, Hacienda West and Palm Hills Alexandria accounted for 76% of residential new sales in FY2022. Badya continues to grow in terms of new sales, construction and handovers momentum.
New sales in Badya grew 54% YoY to record EGP6.1 billion in FY2022, where the number of units sold increased by 21% YoY to 1,267 units. Badya accounted for 26% from new residential sales and 23% from total new sales. We expect Badya to continue to grow as we maintain our current approach towards development and delivery.
We have increased construction spending by 47% YoY to cross the EGP3.7 billion mark during FY2022, surpassing the full year target of EGP3.4 billion. We continue to expand our focus on Badya and Palm Hills New Cairo, the Company’s largest integrated developments while completing smaller sized and older projects. The value of ready to move inventory stood at EGP3.9 billion by end of FY2022, which will continue to boost our financial position in future periods.
At the same time, we are gradually expanding our portfolio of commercial developments mainly through Palmet, Badya and Palm Hills New Cairo. By end of FY2022, we had 1,787 completed units that were released from construction and ready for delivery within livable zones across various projects, including 1,281 units that were handed over to clients. As part of our strategy to continuously enhance and increase value to our shareholders, the extraordinary general assembly held on March 1, 2023 approved the termination of 60 million treasury shares, which will bring the cumulative balance of shares that were purchased and terminated to 176 million shares, since we started the share buyback program in 2020. The recent corporate action will result in the reduction of outstanding shares to 2.95 billion. I would like to thank my fellow Board members, Management team and all our employees for their hard work during last year and look forward to realizing our plans for FY2023