Madinet Masr Reports Results for FY 2023

Madinet Masr concludes a historic year as gross contracted sales and net profit nearly triple year-on-year، showcasing the success of new project launches and robust strategic approach.

Madinet Masr، one of Egypt’s leading urban community developers، announced on 26 February 2024 its standalone financial results for the year ended 31 December 2023 (FY 2023)، reporting a net profit of EGP 2.1 billion on total revenue of EGP 7.6 billion. The Company reported a net profit of EGP 764.4 million for the quarter ended 31 December 2023 (Q4 2023)، booking a top line of EGP 3.2 billion.

Key Highlights

•      Madinet Masr achieves record-breaking gross contracted sales of EGP 29.9 billion for FY 2023، up by 194.3% y-o-y driven by significant unit sales growth. 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 32 billion. On a quarterly basis، gross contracted sales reached EGP 15.0 billion in Q4 2023، an increase of 334.5% y-o-y.

•      The Company delivered a total of 1،103 units during FY 2023، down 46.7% y-o-y، due to a higher inventory of ready-to-move in units 2022. Similarly، in Q4 2023، Madinet Masr delivered a total of 311 units، down by 67.5% y-o-y. 

•      Revenue recorded EGP 7.6 billion for FY 2023، up by 48.1% y-o-y، on the back of strong gross contracted sales growth. On a quarterly basis، revenue reached EGP 3.2 billion in Q4 2023، an increase of 48.3% y-o-y.

•      Gross profit came in at EGP 5.0 billion in FY 2023، climbing 152.5% y-o-y. Madinet Masr’s gross profit margin expanded to 66.0% in FY 2023 from 38.7% in FY 2022، reflecting increased revenue from new sales with higher margins as compared to revenue from unit delivery with lower margins. In Q4 2023، gross profit booked EGP 2.2 billion، up by 181.8% y-o-y، yielding an improved gross profit margin of 67.5% versus 35.5% in Q4 2022.

•      Madinet Masr booked an EBITDA of EGP 3.1 billion for FY 2023، a 128.1% y-o-y increase، yielding an EBITDA margin of 40.5% for the period compared to 26.3% in FY 2022. On a quarterly basis، EBITDA recorded EGP 1.2 billion for Q4 2023، up by 138.4% y-o-y with an associated margin of 36.3% against the 22.6% booked for Q4 2022.

Net profit margin

•      The Company recorded a net profit of EGP 2.1 billion for FY 2023، up by 183.9% y-o-y with a corresponding net profit margin of 27.8% against the 14.5% booked for FY 2022. Net profit came in at EGP 764.4 million for Q4 2023، up by 277.6%، yielding an improved net profit margin of 23.9% versus 9.4% in Q4 2022.

•      Net debt stood at EGP 35.6 million at year-end 2023، marking a decrease of 97.4% from the close of FY 2022، 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 0.01x as of 31 December 2023، down from 1.03x at year-end FY 2022.[2] 

•      Net notes receivable recorded EGP 4.0 billion as of 31 December 2023، up by 2.2% from year-end 2022، yielding a receivables/net debt ratio of 113.4x for FY 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 29.8 billion، up 224% from EGP 9.2 billion as of 31 December 2022.

•      Cash collections booked EGP 6.4 billion in FY 2023، up by 80.9% y-o-y. On a quarterly basis، the Company made collections of EGP 2.7 billion in Q4 2023، an increase of 163.7% y-o-y.

•      Madinet Masr deployed EGP 2.1 billion in construction and infrastructure CAPEX during FY 2023، up from an outlay of EGP 1.8 billion in FY 2022، due to ongoing construction primarily at Taj City. Total new construction contracts awarded in FY 2023 reached EGP 4 billion. In Q4 2023، CAPEX expenses booked EGP 621.0 million، up from the EGP 459.9 million deployed in Q4 2022.

Management Comment 

As we reflect on the accomplishments of 2023، I am delighted to close off the year with such impressive results for Madinet Masr. Throughout the year، we witnessed substantial growth and made significant strides in executing our new growth strategy and realizing our vision of reimaging the future of urban communities across Egypt. 

Our steadfast commitment to growth and innovation، coupled with the dedication of our exceptional team، has enabled us to sustain the momentum established early in the year. Madinet Masr achieved remarkable milestones، with gross contracted sales nearly increasing three-folds year-on-year، soaring to an impressive EGP 29.9 billion، alongside EGP 2.2 billion at Minka and EgyCan. These exceptional achievements have translated into robust financial performance، surpassing our predetermined targets. Consequently، our revenue surged by 48.1% year-on-year، to close the year at EGP 7.6 billion، while net profit nearly tripled year-on-year to EGP 2.1 billion، underscoring our strong financial trajectory.

In line with our commitment to corporate responsibility and sustainable practices، Madinet Masr is intensifying its focus on sustainability in the upcoming year. We are proud to be the first real estate developer to sign a groundbreaking MoU with Elmarakby Steel in the first weeks of 2024 to enhance environmental and economic sustainability across our construction sites. This strategic partnership underscores our determination to integrate sustainability principles into our operations، driving positive impacts on both the environment and the communities we serve.

Looking forward، we remain optimistic about the opportunities that lie ahead and confident in our ability to navigate challenges while capitalizing on these prospects. We are buoyed by Egypt's resilient real estate market fundamentals and anticipate carrying over the positive trajectory into the new year.