Madinet Masr, one of Egypt’s leading urban community developers, announced on 23 May 2024 its standalone financial results for the quarter ended 31 March 2024 (Q1 2024), reporting a net profit of EGP 1.2 billion on total revenue of EGP 3.0 billion.
Key Highlights
• Madinet Masr records gross contracted sales of EGP 14.9 billion for Q1 2024, up by a substantial 729.6% y-o-y driven by significant unit sales growth. In the first quarter of the year, the Company sold 2,344 units across its developments, up seven-folds year-on-year from 333 units in Q1 2023.
• The Company delivered a total of 140 units during Q1 2024, down 49.3% y-o-y versus the 276 units delivered for Q1 2023, due to Madinet Masr’s focus on mass construction in the public areas of Taj City and Sarai. Unit deliveries are expected to increase towards the end of the year.
• Revenue came in at EGP 3.0 billion for Q1 2024, up by 194.6% y-o-y, on the back of strong gross contracted sales growth.
• Gross profit came in at EGP 2.4 billion in Q1 2024, up 316.0% y-o-y. Madinet Masr’s gross profit margin increased from 57.1% in Q1 2023 to 80.7% in Q1 2024 due to an increase in revenue from new sales with higher margins as compared to revenue from unit delivery with lower margins.
• Madinet Masr recorded an EBITDA of EGP 1.6 billion for Q1 2024, climbing 257.8% y-o-y. The EBITDA margin came in at 52.6% for the quarter, against a margin of 43.3% in the same quarter last year.
• The Company booked a net profit of EGP 1.2 billion for Q1 2024, up by 286.7% y-o-y with an associated net profit margin of 39.4% against the 30.0% recorded for Q1 2023.
Key Highlights
• Madinet Masr records gross contracted sales of EGP 14.9 billion for Q1 2024, up by a substantial 729.6% y-o-y driven by significant unit sales growth. In the first quarter of the year, the Company sold 2,344 units across its developments, up seven-folds year-on-year from 333 units in Q1 2023.
• The Company delivered a total of 140 units during Q1 2024, down 49.3% y-o-y versus the 276 units delivered for Q1 2023, due to Madinet Masr’s focus on mass construction in the public areas of Taj City and Sarai. Unit deliveries are expected to increase towards the end of the year.
• Revenue came in at EGP 3.0 billion for Q1 2024, up by 194.6% y-o-y, on the back of strong gross contracted sales growth.
• Gross profit came in at EGP 2.4 billion in Q1 2024, up 316.0% y-o-y. Madinet Masr’s gross profit margin increased from 57.1% in Q1 2023 to 80.7% in Q1 2024 due to an increase in revenue from new sales with higher margins as compared to revenue from unit delivery with lower margins.
• Madinet Masr recorded an EBITDA of EGP 1.6 billion for Q1 2024, climbing 257.8% y-o-y. The EBITDA margin came in at 52.6% for the quarter, against a margin of 43.3% in the same quarter last year.
• The Company booked a net profit of EGP 1.2 billion for Q1 2024, up by 286.7% y-o-y with an associated net profit margin of 39.4% against the 30.0% recorded for Q1 2023.
• Madinet Masr is currently a zero-net debt company with a strong net cash position of EGP 1.3 billion. The net debt/EBITDA ratio stood at (0.85)x as of 31 March 2024 compared to 1.47x at year-end FY 2023.[2]
• Net notes receivable recorded EGP 4.0 billion as of 31 March 2024 at par with year-end 2023, yielding a receivables/net debt ratio of (3.01)x for Q1 2024 versus 6.26x at the close of FY 2023. Total accounts and notes receivable, including off-balance sheet PDCs for undelivered units, amounted to EGP 40.7 billion at the close of the quarter compared to EGP 29.8 billion as of 31 December 2023.
• Cash collections booked EGP 3.3 billion in Q1 2024, up by 276.6% y-o-y.
• Madinet Masr deployed EGP 1.0 billion in construction and infrastructure CAPEX during Q1 2024, up from an outlay of EGP 512.1 million in Q1 2023, reflecting ongoing construction primarily at Taj City. Total new construction contracts awarded in Q1 2024 reached EGP 1.26 billion.
Management Comment
With the start of the new year marked by stellar results, we are filled with confidence for the year ahead. Building on the momentum and success achieved in 2023, we are embarking on an even more exciting journey this year as we deliver on our vision of building distinguished and sustainable communities across Egypt.
We begin the year with an impressive set of financial and operational results that exemplify our commitment to growth and our ability to deliver on our strategic goals. During the first quarter of 2024, gross contracted sales grew eight-folds year-on-year to EGP 14.9 billion, in addition to EGP 43 million at Minka and EgyCan. The operational success reflected positively on our financial performance, which saw revenue triple year-on-year to close the quarter at EGP 3.0 billion and net profit expand 286.7% year-on-year to EGP 1.2 billion. Our results demonstrate the robust demand for high-quality real estate in Egypt and reflect the ongoing trust and confidence our customers have in Madinet Masr as a premium community developer.
Madinet Masr is committed to fostering innovation and establishing itself as a leader in the Egyptian real estate market. At the start of the year, the company launched Theqa through its R&D arm, Madinet Masr Innovation Labs. Theqa is a pioneering property warranty designed to replace traditional maintenance deposits, offering a first-of-its-kind solution in the market. This initiative aligns with Madinet Masr’s vision to tackle the challenges associated with real estate ownership in Egypt and to deliver value-added solutions that enhance the customer experience. By introducing innovative products like Theqa, Madinet Masr continues to set new standards in the industry, reinforcing its role as a forward-thinking community developer.
Moving forward, we are optimistic about the opportunities on the horizon and confident in our capacity to navigate challenges while seizing these prospects. We are encouraged by the robust fundamentals of Egypt’s real estate market and expect to maintain our positive momentum throughout the year. Our forward-thinking approach and commitment to innovation position us well to continue driving growth and delivering value to our stakeholders.
