Madinet Masr Reports EGP 20.9 Sales for 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، 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.[1]

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 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.