Earnings, earnings: Yesterday we saw two real estate giants — Madinet Masr and Orascom Develeopment — and dairy producer Juhayna report their earnings for 1H 2024.

MADINET MASR’S SALES HIT A RECORD HIGH-

Madinet Masr sees income more than double: EGX-listed real estate developer Madinet Masr saw its net income rise 149.4% y-o-y during the first half of the year to record EGP 1.5 bn, according to the company’s earningsrelease(pdf). Revenues came in at just over EGP 4.3 bn, up 95.8% y-o-y as the company “focused on driving sales and revenue growth through the launch of new projects and phases across [its] developments.”

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Sales hit a fresh high: Madinet Masr’s gross contracted sales hit a record high of EGP 20.9 bn during 1H 2024, rising 294% y-o-y. Some 69.1% of the sales came from the company’s Sarai project, while 30.7% came from its Taj City project.

It was a different story for 2Q 2024: On a quarterly basis, the developer’s net income came in at EGP 281.3 mn in 2Q 2024, up 0.3% from the figure reported during the same period last year. Revenues stood at EGP 1.3 bn for the quarter, up 11.2% y-o-y. During the quarter, the company saw its gross contracted sales rise 71.3% y-o-y to EGP 6 bn — 72.1% of the sales came from the Sarai project and 27.8% came from the Taj City project.

Looking ahead: “As we move into the second half of 2024, we remain optimistic about the opportunities ahead. Our strategic priorities will continue to focus on sustainable growth, customer-centric innovation, and operational excellence,” CEO Abdallah Sallam said.

ALSO- Madinet Masr goes to KSA: The developer has set up a real estate asset management subsidiary under the name “Doors” and is planning to inaugurate the first regional branch of the new subsidiary in Saudi Arabia as a prologue to further regional expansion, the developer said in EGX disclosures (here (pdf) and here (pdf)). The real estate developer will also set up three other subsidiaries — a sports club manager, a residential communities manager, and a finishing services company.

JUHAYNA REPORTS “IMPRESSIVE” EARNINGS IN 1H-

Juhayna sees income, revenues rise: Dairy giant Juhayna saw its next income jump 166% y-o-y to EGP 1.5 bn during 1H 2024, according to its latest earnings release (pdf). Revenues saw a 69% y-o-y increase during the half to record EGP 11.5 bn.

On a quarterly basis: The company logged some EGP 1 bn in net income during 2Q 2024, up 362% y-o-y thanks t o “the ongoing success in both the concentrate segment and the export of finished products.” Revenues saw a 70% y-o-y increase to EGP 6 bn during the second quarter of the year.

Exports nearly tripled: Juhayna’s export sales across concentrates surged 190% y-o-y to hit EGP 1.9 bn during 1H 2024, contributing 17% of the company’s total revenues. In USD terms, exports grew 116% y-o-y to reach USD 46.7 mn in 1H 2024. “Juhayna is actively expanding its global presence and exploring new opportunities to further enhance its export segment, demonstrating a commitment to sustainable growth and market diversification,” the company said.

The company also announced strategic changes, including the appointment of Tarek Elwan (LinkedIn) as the company’s new CFO — part of the company’s “evolution from a local business to a global enterprise.”

ODE SEES BOTTOM LINE HOLD STEADY DESPITE FX LOSSES-

EGX-listed Orascom Development Egypt (ODE) saw its net income dip slightly to EGP 942.7 mn from EGP 1.0 bn in 1H 2024, remaining almost unchanged despite significant FX losses during the six-month period, the company said in ist earnings release (pdf). Revenues were up 64.9% y-o-y to EGP 10.2 bn during the first half of 2024.

Adjusted net income grew after excluding FX losses: The company incurred a hefty loss of EGP 2.3 bn during the six-month period, EGP 2.2 bn of which was from foreign currency losses due to the EGP float. The company’s adjusted net income for 1H 2024 — excluding FX losses — increased to EGP 3.2 bn, up 135.7% y-o-y.

Net real estate sales more than doubled y-o-y increase during the half to EGP 15.7 bn — El Gouna contributed 50% of sales, O West development contributed 36% of sales, and Makadi Heights made up 14%. Selling prices were up across all developments, rising most steeply in El Gouna by 67.3%.

In the second quarter: The developer’s topline saw a 86.4% y-o-y jump to EGP 6 bn during the second quarter of the year. Meanwhile, net income for the quarter came in at a record-breaking EGP 1.9 bn, up 209.8% y-o-y thanks to growth across all business segments.

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