Chairman and Chief Editor
Bedour Ibrahim

It reported a net profit of EGP 304.4 million on total revenue of EGP 1,015.2 million

Madinet Masr Reports Results for Q1 2023

Tuesday 23/May/2023 - 02:55 PM
أصول مصر

Madinet Masr starts the year with strong financial and operational results driven by a robust strategy and new project expansions at Taj City and Sarai.

Madinet Masr، one of Egypt’s leading urban community developers، announced on 22 May 2023 its standalone financial results for the quarter ended 31 March 2023 (Q1 2023)، reporting a net profit of EGP 304.4 million on total revenue of EGP 1،015.2 million.

Key Highlights

• Madinet Masr records gross contracted sales of EGP 1،792.8 million for Q1 2023، up by 12.8% y-o-y. Newly acquired subsidiaries – Minka and EgyCan – generated EGP 544 million in contracted sales which were not consolidated in Madinet Masr’s results for the quarter.
• The Company delivered a total of 276 units during Q1 2023، down 23.5% y-o-y versus the 361 units delivered for Q1 2022 due to a higher inventory of ready-to-move in units 2022.
• Revenue came in at EGP 1،015.2 million for Q1 2023، up by 24.1% y-o-y، on the back of strong gross contracted sales growth. 
• Gross profit came in at EGP 579.9 million in Q1 2023، up 113.6% y-o-y. Madinet Masr’s gross profit margin increased from 33.2% in Q1 2022 to 57.1% in Q1 2023 due to an increase in revenue from new sales with higher margins as compared to revenue from unit delivery with lower margins.
• Madinet Masr booked an EBITDA of EGP 443.9 million for Q1 2023، a 110.4% y-o-y increase. The EBITDA margin came in at 43.7% for the quarter، against a margin of 25.8% recorded in the same quarter last year.
• The Company recorded a net profit of EGP 304.4 million for Q1 2023، up by 153.1% y-o-y with an associated net profit margin of 30.0% against the 14.7% booked for Q1 2022.

• Net debt stood at EGP 687.2 million at the close of Q1 2023، marking a 50.5% year-to-date decrease، 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 booked 0.39x for the period، down from 1.65x at year-end FY 2022.  
• Total notes receivable recorded EGP 4،134.0 million as at 31 March 2023، up by 4.7% from year-end 2022، yielding a receivables/net debt ratio of 6.0x for Q1 2023، up from 2.8x at the close of FY 2022.
• Cash collections booked EGP 888.1 million in Q1 2023، up by 6.2% y-o-y. 
• Madinet Masr deployed EGP 512.1 million in construction and infrastructure CAPEX during Q1 2023، compared to the outlay of EGP 381.1 million in Q1 2022، reflecting ongoing projects primarily at Taj City.

Management Comment

Abdallah Sallam،Chief Executive Officer، said: "  we start a new year with stellar results، we are filled with confidence and excited for the year ahead. I am pleased to inform you that Madinet Masr achieved remarkable success carrying over its growth momentum into the first quarter of the year.

The Egyptian real estate market continues to demonstrate its defensive nature amidst macroeconomic instability and inflationary pressures. The prevailing market fundamentals along with our Company’s strategic vision، unwavering resilience، and the dedication of our talented team are yielding remarkable outcomes and propelling the next era of growth for Madinet Masr.

Robust financial results

During the first quarter of 2023، Madinet Masr recorded gross contracted sales of EGP 1،792.8 million، in addition to EGP 544 million at Minka and EgyCan، and delivered robust financial results in line with our targets. Revenue reached EGP 1،015.2 million، up 24.1% y-o-y، while net profit more than doubled year-on-year to EGP 304.4 million. The successful launch of Rai in Sarai and the second phase of Clubside in Taj City have been instrumental in driving our revenue growth. Our results are a testament to the strong demand for quality real estate offerings in Egypt as well as the enduring trust and confidence our customers have placed in Madinet Masr as a community developer.

Strategic expansion

At Madinet Masr، we firmly believe in strategic expansion as a catalyst for long-term growth and value creation. Our vision for the future is best exemplified through our rebranded identity، which channels a new era of geographic expansion and strategic transformation as we look beyond Nasr City and East Cairo. We have ambitious projects in the pipeline as we continue our mission of transforming urban communities and shaping the real estate landscape.

As we move forward، Madinet Masr is committed to maintaining its competitive edge through continuous innovation and a customer-centric approach. We will leverage cutting-edge technology، explore new opportunities، and focus on delivering exceptional experiences to our homeowners. By staying agile and adaptive، we are well-positioned to address emerging trends and capitalize on evolving market dynamics".