Madinet Masr Reports Results for 9M 2024

Madinet Masr delivers stellar nine-month results, with contracted sales more than doubling year-on-year to EGP 32.7 billion and net profit reaching an all-time high as new projects launch.

 Madinet Masr, one of Egypt’s leading urban community developers, announced on 10 November 2024 its standalone financial results for the nine-month period ended 30 September 2024 (9M 2024), reporting a net profit of EGP 2.6 billion on total revenue of EGP 7.2 billion. Madinet Masr reported a net profit of EGP 1.1 billion for the quarter ended 30 September 2024 (Q3 2024), with revenues reaching to EGP 2.9 billion.

Summary Income Statement 

(EGP mn)       Q3 2024 Q3 2023 Change   9M 2024        9M 2023          Change

Revenue 2,926.6  2,242.5  30.5%     7,233.9  4,442.0  62.9%

Gross Profit   2,077.9  1,504.8  38.1%     5,435.5  2,884.3  88.4%

Gross Profit Margin     71.0%     67.1%      3.9 pts   75.1%     64.9%           10.2 pts 

EBITDA   1,498.1  1,058.5  41.5%     3,459.2  1,931.6  79.1%

EBITDA Margin     51.2%     47.2%      4.0 pts   47.8%     43.5%      4.3 pts 

Net Profit       1,107.1  773.2      43.2%     2,565.5  1,357.9  88.9%

Net Profit Margin 37.8%     34.5%      3.3 pts   35.5%     30.6%      4.9 pts 

Key Operational Indicators Q3 2024 Q3 2023 Change   9M 2024          9M 2023     Change

Gross Contracted Sales (EGP mn)     11,804.8 9,558.7  23.5%          32,682.4     14,856.9 120.0%

Units Sold       1,226      1,530     -19.9%    4,097      2,585     58.5%

Deliveries       198         314        -36.9%    478         792        -39.6%

Land Bank (million sqm)     12.7 9.6  31.9%     12.7 9.6  31.9%

Key Highlights

•        Madinet Masr books gross contracted sales of EGP 32.7 billion for 9M 2024, more than doubling year-on-year as the Company launches new projects and units sold increase. The Company sold 4,097 units across its developments in 9M 2024, up 58.5% y-o-y from the 2,585 units sold in the same period last year.

•        The Company delivered 478 units during 9M 2024, down 39.6% y-o-y compared to the 792 units delivered in 9M 2023, as Madinet Masr completes mass construction in Taj City and Sarai. 

•        Revenue recorded EGP 7.2 billion in 9M 2024, up 62.9% y-o-y, supported by strong gross contracted sales. On a quarterly basis, Madinet Masr booked EGP 2.9 billion in revenue in Q3 2024, up 30.5% y-o-y.

•        Madinet Masr’s gross profit came in at EGP 5.4 billion in 9M 2024, increasing 88.4% y-o-y, yielding an expanded gross profit margin of 75.1% versus 64.9% in 9M 2023. The higher margin reflects the increase in revenue from new sales with associated higher margins as compared to revenue from unit delivery with lower margins. On a quarterly basis, gross profit came in at EGP 2.1 billion for Q3 2024, up 38.1% y-o-y, with an associated gross profit margin of 71.0% compared to 67.1% in Q3 2023.

•        Madinet Masr recorded an EBITDA of EGP 3.5 billion for 9M 2024, rising 79.1% y-o-y and yielding an EBITDA margin of 47.8% for the period compared to 43.5% in 9M 2023. On a quarterly basis, EBITDA recorded EGP 1.5 billion for Q3 2024, up 41.5% y-o-y with an associated margin of 51.2% against the 47.2% booked for Q3 2023.

•        The Company recorded a net profit of EGP 2.6 billion in 9M 2024, increasing 88.9% y-o-y with an associated net profit margin of 35.5% against the 30.6% booked in 9M 2023. On a quarterly basis, net profit reached EGP 1.1 billion in Q3 2024, up 43.2% y-o-y, with a corresponding net profit margin of 37.8% compared to 34.5% in Q3 2023. 

A zero-net debt company

•        Madinet Masr is currently a zero-net debt company with a strong net cash position of EGP 3.0 billion. The net debt/EBITDA ratio stood at (0.06) as of 30 September 2024 compared to 0.01 at year end FY 2023. 

•        Net notes receivable recorded EGP 2.5 billion as of 30 September 2024 down from EGP 4.0 billion at year-end 2023, yielding a receivables/net debt ratio of (8.53) for Q3 2024 versus 113.40 at the close of FY 2023. Total accounts and notes receivable, including off-balance PDCs for undelivered units, amounted to EGP 50.0 billion as of 30 September 2024 compared to EGP 29.8 billion as of 31 December 2023.

•        Cash collections grew 170.7% y-o-y to EGP 10.1 billion in 9M 2024.

•        Madinet Masr deployed EGP 5.0 billion in construction and infrastructure CAPEX in 9M 2024, up from EGP 1.5 billion in 9M 2023 due to ongoing projects at Taj City and Sarai. The Company made CAPEX outlays of EGP 3.1 billion in Q3 2024, up from the EGP 596.6 million deployed in Q3 2023.

Management Comment 

Abdallah Sallam, Chief Executive Officer, commented on the results, saying:” As we near the end of 2024, I am delighted to share that Madinet Masr has once again delivered exceptional results with strong financial and operational performance as well as strategic achievements that will further fuel our future growth. Our team’s tireless efforts across various divisions have been instrumental in achieving these results and bringing our vision to life amidst shifting market conditions.

Our robust strategy and commitment to developing sustainable communities in Egypt are yielding remarkable results. Throughout the year so far, we prioritized sales and revenue growth by launching new projects and phases across our developments. Madinet Masr achieved impressive gross contracted sales of EGP 32.7 billion, paving the way for exceptional financial performance that is consistent with our ambitious targets. Revenue increased 62.9% year-on-year to EGP 7.2 billion, while net profit surged 88.9% year-on-year to a record-high of EGP 2.6 billion for the first nine months of the year.

On the strategic front, we have made significant strides in expanding our land bank to 12.7 million square meters, securing prime land parcels and expanding our geographic footprint. In September, we launched “The Butterfly”, our first project in Mostakbal City, which holds great growth potential due to its strategic location. Our partnership with Midar will see us develop another residential project in Mostakbal City and our agreement with Misr Al-Gadida for Housing and Development expands our presence to New Heliopolis City. We will continue to forge partnerships with renowned developers, leveraging synergies to deliver exceptional projects and communities across Egypt.

We look forward to closing off an exciting year on a positive note and are excited about the opportunities that lie ahead. We remain confident and committed to delivering noteworthy "results and solidifying our position as a leading real estate developer in Egypt.