MNHD profits amount to EGP 407.2m in Q1 2017

Com­pany re­ported con­sol­i­dated rev­enues of EGP 751.7m, up 263% y-o-y

The Daily News Egypt - - Business -

Madinet Nasr Hous­ing & Devel­op­ment (MNHD), an ur­ban de­vel­oper in Egypt, an­nounced on Mon­day its re­sults for the quar­ter end­ing 31 March (Q1) 2017,re­port­ing con­sol­i­dated rev­enues of EGP 751.7m, up 263% yearon-year (y-o-y).

“Top-line gains fil­tered down to the com­pany’s net profit, which recorded EGP 407.2m in the first quar­ter of 2017, are up 494% y-o-y and with a 26-point net mar­gin ex­pan­sion to 54.2%,” ac­cord­ing to the com­pany’s state­ment.

On a stand­alone ba­sis, the MNHD recorded an al­most five-fold in­crease in rev­enues to EGP 690.4m while net profit came in at EGP 406.2m, up an im­pres­sive 510% y-o-y, the state­ment read.

The state­ment added that rev­enue growth con­tin­ued to be driven by the com­pany’s SARAI devel­op­ment that recorded sales of EGP 1.79bn in Q1, with a to­tal of 780 units sold dur­ing the quar­ter.

Mean­while, the state­ment stated that to­tal con­tracted sales for Q1 stood at EGP 1.84bn. “MNHD recorded a con­struc­tion out­lay of EGP 146m dur­ing Q1 2017, with de­liv­er­ies up 20% y-o-y com­pared to the same pe­riod last year.”

“In our first full quar­ter post the floata­tion of the Egyp­tian pound, we are see­ing strong signs that de­mand for real es­tate re­mains re­silient as ev­i­denced by our abil­ity to con­tinue driv­ing rev­enue, and net profit grew pe­riod-on-pe­riod,” said MNHD CEO Ahmed El Hi­tamy, ac­cord­ing to the state­ment.

He added that “Egypt’s favourable de­mo­graph­ics and con­sumers’ con­tin­ued con­fi­dence in prop­erty as a safe in­vest­ment have negated fears that the mar­ket would be ad­versely af­fected post the floata­tion.”

The MNHD said that, on the con­trary, priced at a dis­count com­pared to re­gional peers, Egypt’s real of­fer­ings are be­com­ing “in­creas­ingly at­trac­tive to Egyp­tian ex­pa­tri­ates along­side strong lo­cal de­mand,” El Hi­tamy added.

Head­ing into the sec­ond half of the year, ac­cord­ing to the state­ment, MNHD is push­ing through with ef­forts to launch new phases at its Taj City devel­op­ment. “Phase one of the 3.5 mil­lion-square-me­tre, mixed-use, high­end devel­op­ment, Tag Sul­tan, was sold out dur­ing the third quar­ter of 2015, gen­er­at­ing more than EGP 2.1bn in sales since its De­cem­ber 2012 launch,” the state­ment noted.

Mean while, units at T-Zone,Taj City’s sec­ond phase launched in De­cem­ber 2015, were also sold out as of year-end 2016 af­ter hav­ing gen­er­ated EGP 2.4bn in sales. Fol­low­ing the amend­ment of its mas­ter plan, the EGP 60bn Taj City pro­ject will boast a wide va­ri­ety of res­i­den­tial com­mu­ni­ties.

“At MNHD’s 5.5-mil­lion-squareme­tre SARAI pro­ject—lo­cated in New Cairo in close prox­im­ity to the New Ad­min­is­tra­tive Cap­i­tal—the com­pany con­tin­ues to mon­e­tise this unique land plot, and it al­ready has units sold worth a to­tal of EGP 2.81bn since its launch in Novem­ber 2016.”

In con­clu­sion, the state­ment said, “The MNHD has more than 8,000 units un­der devel­op­ment/de­sign in five key projects in the Greater Cairo area, of­fer­ing ex­po­sure to a broad so­cioe­co­nomic spec­trum of con­sumers.”

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