Cairo, 12 August 2024 – Madinet Masr, one of Egypt’s leading urban community developers, announced on 12 August 2024 its standalone financial results for the six-month period ended 30 June 2024 (H1 2024), reporting a net profit of EGP 1.5 billion on total revenue of EGP 4.3 billion. Madinet Masr reported a net profit of EGP 281.3 million for the quarter ended 30 June 2024 (Q2 2024), with revenues increasing to EGP 1.3 billion.
Key Highlights
· Madinet Masr records gross contracted sales of EGP 20.9 billion for H1 2024, up nearly four-folds year-on-year marking a company record for gross contracted sales in the first half of the year. The Company sold 2,871 units across its developments in H1 2024, up 172.1% y-o-y from the 1,055 units sold in the first half of last year.
The Company delivered a total of 280 units during H1 2024, down 41.5% y-o-y compared to the 479 units delivered in H1 2023, due to Madinet Masr’s focus on mass construction in Taj City and Sarai.
Revenue came in at EGP 4.3 billion in H1 2024, up 95.8% y-o-y, on the back of strong gross contracted sales. On a quarterly basis, Madinet Masr booked EGP 1.3 billion in revenue in Q2 2024, up 11.2% y-o-y.
· Gross profit recorded EGP 3.4 billion in H1 2024, increasing 143.4% y-o-y. Madinet Masr’s gross profit margin grew from 62.7% in H1 2023 to 77.9% in H1 2024 due to an increase in revenue from new sales with higher margins as compared to revenue from unit delivery with lower margins. On a quarterly basis, gross profit came in at EGP 945.4 million for Q2 2024, up 18.2% y-o-y, with an associated gross profit margin of 71.8% compared to 67.5% in Q2 2023.
Madinet Masr booked an EBITDA of EGP 1.9 billion for H1 2024, reflecting a 122.9% y-o-y increase and yielding an EBITDA margin of 45.2% against the 39.7% booked in H1 2023. On a quarterly basis, EBITDA recorded EGP 373.9 million for Q2 2024, down 13.8% y-o-y due to higher finance costs incurred during the quarter due to increased interest rates.
The Company recorded a net profit of EGP 1.5 billion in H1 2024, up 149.4% y-o-y with an associated net profit margin of 33.9% versus the 26.6% booked in H1 2023. On a quarterly basis, net profit came in at EGP 281.3 million in Q2 2024, at par with the same quarter last year, yielding a net profit margin of 21.4% down from 23.7% in Q2 2023.
Madinet Masr is currently a zero-net debt company with a strong net cash position of EGP 1.4 billion. The net debt/EBITDA ratio stood at (0.36) as of 30 June 2024 compared to 0.02 at year end FY 2023.[2]
Net notes receivable recorded EGP 3.1 billion as of 30 June 2024 down from EGP 4.0 billion at year-end 2023, yielding a receivables/net debt ratio of (2.16) for Q2 2024 versus 113.40 at the close of FY 2023. Total accounts and notes receivable, including off-balance sheet PDCs for undelivered units, amounted to EGP 43.8 billion as of 30 June 2024 compared to EGP 29.8 billion as of 31 December 2023.
· Cash collections increased 209.0% y-o-y, reaching EGP 6.0 billion in H1 2024.
Madinet Masr contracted sales increase nearly four-folds year-on-year to EGP 20.9 billion and net profit crosses the EGP 1 billion mark, driven by new project launches and a robust strategy
· Madinet Masr deployed EGP 1.8 billion in construction and infrastructure CAPEX during H1 2024, compared to the outlay of EGP 925.5 million in H1 2023, reflecting ongoing projects at Taj City and Sarai. The Company made CAPEX outlays of EGP 737.5 million in Q2 2024, up from the EGP 413.4 million deployed in Q2 2023.
As we conclude the first half of 2024, I am pleased to share with you Madinet Masr's strong performance and strategic advancements that have positioned us for continued success. Our operational and financial results reflect our unwavering commitment to innovation, quality, and sustainable growth, despite the dynamic and often challenging market conditions, said Abdallah Sallam Chief Executive Officer.
Our unwavering dedication to our strategic vision and the exceptional efforts of our talented team have enabled us to deliver notable results. During the first half of 2024, we focused on driving sales and revenue growth through the launch of new projects and phases across our developments. Madinet Masr's gross contracted sales reached EGP 20.9 billion paving the way for impressive financials results that align with our ambitious targets. Our revenue increased to EGP 4.3 billion, marking a 95.8% year-on-year growth, while net profit surged to EGP 1.5 billion, representing a 149.4% year-on-year increase and a new record for the first half of a year.
In terms of strategic developments, we successfully launched new phases and projects in our flagship developments, Taj City and Sarai, receiving an overwhelmingly positive market response that underscores the trust and confidence our customers place in Madinet Masr. We are particularly excited about the launch of “Tajed”, our first integrated commercial district located in Taj City, which brings together commercial, retail and office spaces.
As we move into the second half of 2024, we remain optimistic about the opportunities ahead. Our strategic priorities will continue to focus on sustainable growth, customer-centric innovation, and operational excellence. We are confident that our solid foundation, combined with our proactive approach to market trends, will enable us to navigate the future with agility and resilience.