Cairo, 9 November 2023 – Madinet Masr, one of Egypt’s leading urban community developers, announced on 9 November 2023 its standalone financial results for the nine-month period ended 30 September 2023 (9M 2023), reporting a net profit of EGP 1.4 billion on total revenue of EGP 4.4 billion. The Company reported a net profit of EGP 773.2 million for the quarter ended 30 September 2023 (Q3 2023), booking a top line of EGP 2.2 billion.
Madinet Masr set a new record generating gross contracted sales of EGP 14.9 billion for 9M 2023, up by 121.9% y-o-y as the Company expanded and unit sales grew. Newly acquired subsidiaries – Minka and EgyCan – booked EGP 2.2 billion in contracted sales which were not consolidated in Madinet Masr’s results, bringing total contracted sales to EGP 17.1 billion. On a quarterly basis, gross contracted sales reached EGP 9.6 billion in Q3 2023, an increase of 192.4% y-o-y.
The Company delivered a total of 792 units during 9M 2023, down 28.8% y-o-y, due to a higher inventory of ready-to-move in units 2022. In Q3 2023, Madinet Masr delivered a total of 314 units, up by 11.7% y-o-y.
Revenue recorded EGP 4.4 billion for 9M 2023, up by 48.0% y-o-y, supported by strong gross contracted sales growth. On a quarterly basis, revenue reached EGP 2.2 billion in Q3 2023, an increase of 85.2% y-o-y.
Gross profit came in at EGP 2.9 billion in 9M 2023, rising 134.3% y-o-y. Madinet Masr’s gross profit margin expanded to 64.9% in 9M 2023 from 41.0% in 9M 2022, reflecting increased revenue from new sales with higher margins as compared to revenue from unit delivery with lower margins. In Q3 2023, gross profit recorded EGP 1.5 billion, climbing 120.2% y-o-y, with an associated gross profit margin of 67.1% versus 56.5% in Q3 2022.
Madinet Masr recorded an EBITDA of EGP 1.9 billion for 9M 2023, a 122.4% y-o-y increase, yielding an EBITDA margin of 43.5% for the period compared to 28.9% in 9M 2022. On a quarterly basis, EBITDA recorded EGP 1.1 billion for Q3 2023, up by 127.8% y-o-y with an associated margin of 47.2% against the 38.4% booked for Q3 2022.
The Company achieved a net profit of EGP 1.4 billion for 9M 2023, rising 149.2% y-o-y with a corresponding net profit margin of 30.6% against the 18.2% booked for 9M 2022. Net profit came in at EGP 773.2 million for Q3 2023, up by 151.0% and yielding an enhanced net profit margin of 34.5% versus 25.4% in Q3 2022.
Net debt stood at EGP 455.7 million at the close of 9M 2023, marking a 67.2% year-to-date decrease, in line with Madinet Masr’s strategy to optimize efficient utilization of borrowing to support growth and manage financial risk. The net debt/EBITDA ratio stood at 0.2x as of 30 September 2023, down from 1.2x at year-end FY 2022.[2]
Net notes receivable recorded EGP 4.2 billion as of 30 September 2023, up by 5.1% from year-end 2022, yielding a receivables/net debt ratio of 9.1x for 9M 2023, up from 2.8x at the close of FY 2022. Total accounts and notes receivable, including off-balance sheet PDCs for undelivered units, amounted to EGP 24.9 billion, up 75% from EGP 14.2 billion as of 31 December 2022.
Cash collections booked EGP 3.7 billion in 9M 2023, up by 42.0% y-o-y. On a quarterly basis, the Company made collections of EGP 1.8 billion in Q3 2023, an increase of 78.9% y-o-y.
Madinet Masr deployed EGP 1.5 billion in construction and infrastructure CAPEX during 9M 2023, up from an outlay of EGP 1.3 billion in 9M 2022, due to ongoing construction primarily at Taj City. Total new construction contracts awarded in 9M 2023 reached EGP 3.7 billion. In Q3 2023, CAPEX expenses booked EGP 596.6 million, up from the EGP 542.0 million deployed in Q3 2022.
As we approach the end of 2023, I am pleased to share yet another robust set of results for Madinet Masr, which saw us achieve remarkable growth in 9M 2023 all while making evident progress on our new growth strategy.
Our unwavering dedication to growth and innovation, the dedication of our talented team, and a solid strategic vision have allowed us to carry forward the momentum from the beginning of the year. Madinet Masr delivered outstanding results with gross contracted sales increasing more than two-folds year-on-year reaching an impressive EGP 14.9 billion, in addition to EGP 2.2 billion at Minka and EgyCan. These exceptional achievements have translated into robust financial results that exceed our targets. Consequently, our revenue surged 48% year-on-year to EGP 4.4 billion and net profit more than doubled year-on-year to EGP 1.4 billion, underlining our strong financial performance.
In line with our commitment to foster innovation and remain at the forefront of the Egyptian real estate market, I am delighted with the launch of our new R&D arm “Madinet Masr Innovation Labs”. Innovation Labs will be instrumental in driving forward the Company's vision for groundbreaking and cutting-edge solutions in the real estate space. Our latest product is “Touba”, a platform that revolutionizes the concept of buying and investing in real estate by leveraging digital capabilities and addressing homeowners’ evolving needs.
As we look ahead, we are optimistic about the potential opportunities that lie in our path and confident in our ability to navigate challenges while capitalizing on these opportunities. We are encouraged by Egypt’s ever-resilient real estate market fundamentals and look forward to closing the year on a positive note.
