Orascom Development Holding AG
Orascom Development Holding AG: Orascom Development Holding: Breaks its net real estate sales record to CHF 200.6 million, increases revenues by 39.2% to CHF 340.3 million and more than doubles its Adj. EBITDA to CHF 70.2 million.
Orascom Development Holding AG / Key word(s): Annual Results/Annual Results Orascom Development Holding: Breaks its net real estate sales record to CHF 200.6 million, increases revenues by 39.2% to CHF 340.3 million and more than doubles its Adj. EBITDA to CHF 70.2 million. Group Highlights – Record net real estate sales of CHF 200.6 million in FY 2018 (excluding O West) vs. CHF 126.2 million in FY 2017. – Real Estate revenues recorded an 80.6% increase to CHF 126.6 million in FY 2018. – Hotels revenues increased by 19.0% to CHF 156.5 million accompanied by a 32.1% increase in GOP to CHF 59.2 million. – Town management revenues increased by 33.7% to CHF 36.1 million in FY 2018. – Total revenue growth of 39.2% to CHF 340.3 million. – Adj. EBITDA more than doubled reaching CHF 70.2 million in FY 2018 corresponding to a solid operational margin of 20.6%. – Net losses decreased by 9.2% to CHF 37.3 million in FY 2018 despite one-off historical legacy items (CHF 16.5 million). – Net debt to Adj. EBITDA reached 3.3 times in 2018 coming down from 14.7 times in 2016. – Excellent start in O West (first home market) with sales of CHF 126.3 million during the soft launch phase, which will be recognized in Q1 2019 results. Altdorf, 5 April 2019 – Orascom Development Holding AG ends the year on solid grounds with strong operational and financial results across all business segments. Our operations continued to improve during FY 2018, reflecting our focus on profitable growth and margins expansion with revenues increasing by 39.2% to CHF 340.3 million in FY 2018 vs. CHF 244.4 million in FY 2017. Gross Profit increased by 72.8% to CHF 108.7 million and a margin of 31.9% and Adj. EBITDA more than doubled to CHF 70.2 million with a margin of 20.6% vs. CHF 33.4 million and a margin of 13.7% in FY 2017. Net Debt to Adj. EBITDA reached 3.3x in FY 2018, down from 8.2x in FY 2017 and 14.7x in FY 2016. The net loss was reduced to CHF 37.3 million in FY 2018 vs. CHF 41.1 million in FY 2017 despite losses originated from one-time historical legacy items in the amount of CHF 16.5 million resulted from FX losses when we sold Citadel Azur Hotel in May 2018. The cash flow from operations reached CHF 56.2 million, an 87.3% increase over the same period last year. The solid operational performance and the debt restructure in Egypt and Oman, which will lead to reduced financing costs in the future, are a strong testament that the Group is on its way back to profitability.
Net real estate sales exceeded our target for the year and recorded a 40.8% increase to CHF 111.4 million vs. CHF 79.1 million in FY 2017. Throughout 2018 we launched 2 new projects “Ancient Sands Villas” and “Cyan” along with the last phase of “Tawila” all for a total inventory of USD 111.2 million and have successfully sold them all out. Real estate revenues increased by 53% to CHF 64 million vs. CHF 41.9 million in FY 2017. Town management revenues increased by 31% to CHF 28.5 million vs. CHF 21.8 million in FY 2017. The increase is mainly due to the increase in activities throughout 2018 and improving the quality and profitability of our amenities. Hawana Salalah, Oman Our hotels in Hawana Salalah continues to sustain their positive performance since the beginning of the year. In 2018, revenues increased by c. 24% to CHF 41.4 million vs. CHF 33.5 million in FY 2017 with a 44.2% increase in GOP to CHF 15 million vs. CHF 10.4 million in FY 2017. Additionally, Salalah Hotels reported a TREVPAR growth of 6% from CHF 117 in 2017 to CHF 124 in 2018 and a GOP PAR growth of over 25% going from CHF 36 in 2017 to CHF 45 in 2018. We completed the construction of Fanar Hotel & Residences’ expansion of additional 177 rooms making it the largest hotel in Salalah; operation started end of December 2018 with a 90% occupancy. Moving to the town management, the destination fuel station started operating in the Marina in Q4 2018.
With the increased interest on Luštica Bay on the back of the opening of the destination’s first hotel, the marina and the retail outlets, net real estate sales increased by 97.7% to CHF 34 million vs. CHF 17.2 million in FY 2017. The year 2018 started as the busiest year yet on the development and construction fronts. Besides the significant increase in sales that further emphasized demand on our project. New homeowners settled into the Marina Village neighborhood, with the completion of several residences. Construction is still underway on the final Magnolija and Kamelija buildings, as well the exclusive townhouses and stand-alone villas. In addition to that we began construction of Luštica Bay’s town centre, Centrale. On the town management side, we opened the first phase of the main marina with 50 berth the first marina to be built in Montenegro in the recent period. Following this, we will begin equipping the remaining phase of the marina, set to offer 176 berths in total.
Jebel Sifah is continually cementing its position as Muscat’s premier getaway destination offering premium facilities. In December 2018, Jebel Sifah hosted the MENA region’s 1st Spartan TRIFECTA event with over than 3,500 participants.
The official launch started in March 2019 included a wide range of apartments, duplexes, penthouses and lofts. The first launched phase included 340 units with a total inventory of CHF 68.9 million and an average selling price of CHF 1,045 per m2 fully finished. The official launch sales is progressing very well, showing very strong demand and appetite from our clients which strongly reaffirms ODH’s position as the market leader in building fully integrated towns, benefiting from its solid brand equity and unique community management experience.
ODH is targeting topline revenues of CHF 400 million and an Adjusted EBITDA within the range of CHF 74 million – CHF 77 million. These estimates exclude the contribution of Citadel Azur, Royal Azur, Club Azur hotels and Tamweel Group that the Group has identified as non-core assets and disposed in 2018. Thus, when FY 2018 figures are normalized for those assets, the targeted 2019 revenues represent a 25% growth from CHF 319 million in FY 2018 and the Adj. EBITDA represents 19%-24% growth from CHF 62 million in FY 2018. The Group is also eyeing new real estate net sales of CHF 445 million – CHF 470 million compared to CHF 200.6 million in 2018, capitalizing on its first home project “O West” and building on the positive momentum of El Gouna and Makadi Heights, Jebal Sifah, Hawana Salalah and Luštica Bay.
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End of ad hoc announcement |
Language: | English |
Company: | Orascom Development Holding AG |
Gotthardstraße 12 | |
6460 Altdorf | |
Switzerland | |
Phone: | +41 41 874 17 17 |
Fax: | +41 41 874 17 07 |
E-mail: | ir@orascomdh.com |
Internet: | www.orascomdh.com |
ISIN: | CH0038285679 |
Valor: | A0NJ37 |
Listed: | SIX Swiss Exchange |
EQS News ID: | 796361 |
End of Announcement | EQS Group News Service |