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Key Highlights of 1H 2025 vs. 1H 2024
▪ Net real estate sales reached EGP 11.6 billion during 1H 2025.
▪ Total revenues increased by 12.9% to EGP 11.5 billion.
▪ Revenues from recurring business increased by 44.3% to EGP 4.6 billion compared to 1H 2024.
▪ Adj. EBITDA increased by 19.3% to EGP 5.4 billion, with a margin of 47.2%.
▪ Net profit reached EGP 3.0 billion, up by 222.1%, a record-breaking achievement.
▪ The hotel segment increased by 45.5%, generating revenues of EGP 2.7 billion with Adj. EBITDA margin of 50%.
▪ Our cash balance reached EGP 8.1 billion, and our net debt to Adj. EBITDA reached 0.2x.
▪ Cash flow from operations increased by 22.6% to reach EGP 4.6 billion.
Key Highlights of Q2 2025 vs. Q2 2024
▪ Net real estate sales for Q2 2025 increased by 9.2% to EGP 7.5 billion.
▪ Total revenues reached EGP 5.1 billion.
▪ Adj. EBITDA reached EGP 2.0 billion with a margin of 40.1%
▪ Net profit reached EGP 1.1 billion.
Financial Review:
1H 2025:
The 1H of 2025 has been marked by substantial growth for ODE, as evidenced by various performance metrics and operational milestones. These achievements illustrate the strong discipline that guides our team in executing strategic plans, the agility with which we respond to market changes and challenges, and the long-term vision that informs our decision-making processes. Together, these elements contribute to a resilient business structure that can sustain progress and achieve future objectives.
✓ Revenue growth: ODE achieved revenue of EGP 11.5 billion, representing a 12.9% increase, demonstrating remarkable resilience in a challenging economic landscape.
✓ Recurring income segments (Hotels + Commercial Assets): This contributed EGP 4.6 billion to total revenue, representing an impressive 44.3% increase compared to 1H 2024.
✓ Gross profit: Increased by 24.0% to EGP 5.2 billion, boasting a healthy margin of 45.0% vs. 40.9% in 1H 2024. This improved performance underscores our operational excellence, resilience in the face of inflation, and the positive impact of key strategic initiatives.
✓ Strong Adj. EBITDA: Adj. EBITDA increased by 19.3% to a record EGP 5.4 billion, with a margin of 47.2%.
✓ Other gains and losses: The other gains and losses reported a gain of EGP 46.7 million, compared to a loss of EGP 2.3 billion in 1H 2024. This improvement is primarily attributed to the appreciation of the EGP following the devaluation in 2024, which adversely impacted our financial outcomes in the prior period.
✓ Finance costs: Up by 6.5% to EGP 912.4 million, due to the increase in the amount withdrawn related to O West.
✓ Tremendous net income performance: As a result of these positive developments, ODE’s net income increased by 222.1% from EGP 942.7 million in 1H 2024 to EGP 3.0 billion in 1H 2025.
✓ Strong cash balance: On the balance sheet side, the company continued to preserve a healthy balance sheet and monitor its cash balances and liquidity. Our cash balance reached EGP 8.1 billion during 1H 2025, up 6.5% from Q1 2025, and our foreign currency cash stood at USD 107.1 million. Our net debt reached EGP 2.2 billion by the end of 1H 2025, and our net debt to Adj. EBITDA ratio stood at 0.21x as of 1H 2025.
Q2 2025:
In Q2 2025, our results were affected by the absence of land sales, particularly in comparison to the EGP 1.5 billion in sales recorded in Q2 2024. This situation naturally had an impact on both our revenue and net income figures during the period.
✓ Revenue: In Q2 2025, revenue declined by 15.7% year-on-year to EGP 5.1 billion. When normalizing land sales, our revenues would have increased by 8.2% compared to Q2 2024.
✓ Gross profit: The quarter’s gross profit reached EGP 1.9 billion, with a gross margin of 37.8%.
✓ Adj. EBITDA: Adjusted EBITDA also reached EGP 2.0 billion, boasting a 40.1% margin.
✓ Net income: Our net income during the quarter reached EGP 1.1 billion.
Group Real Estate: Q2 2025, real estate sales demonstrated a positive increase, with total sales reaching EGP 7.5 billion, representing a 9% rise from Q2 2024, which included EGP 1.5 billion from land sales.
In Q2 2025, real estate sales showed a notable increase compared to the same quarter in 2024, with total sales reaching EGP 7.5 billion, representing a 9.2% rise. This figure includes EGP 1.5 billion from land sales. When excluding land sales, our real estate performance for this quarter demonstrates a substantial 40.5% increase compared to Q2 2024. Our 1H 2025 sales reached EGP 11.7 billion, representing a 26% year-over-year decline. Our international sales continue to represent a critical aspect of our operations, comprising nearly 46% of our total real estate sales compared to 39% in 1H 2024. This growth is indicative of ODE’s strong market presence and the confidence that our customers place in our offerings. El Gouna remains the leader in new sales, accounting for 54%, followed by O West at 31% and Makadi Heights at 15%, providing us with targeted opportunities for growth. We have successfully raised our average real estate selling prices per square meter across all destinations, with El Gouna increasing by 45%, Makadi by 77%, and O West by 27%. On the other hand, real estate revenue decreased by 5.5% compared to 1H 2024, reaching EGP 5.4 billion, primarily due to strategic adjustments in the O West project aimed at ensuring the timely delivery of the first phase of apartments. This focus underscores our commitment to client satisfaction. Additionally, we observed a 7.0% decrease in Adj. EBITDA, which stands at EGP 2.2 billion in 1H 2025, yielding a margin of 40%. However, our real estate cash collections experienced a 6.2% increase, amounting to EGP 7.8 billion in 1H 2025, demonstrating our ability to enhance cash flow. Moreover, the total deferred revenue from real estate, which will be recognized until 2029, rose by 40% to EGP 42.4 billion. This increase provides us with strong visibility on projected revenue across all destinations over the next four years, positioning us well for continued growth and sustainable success.
Group Hotels: The hotel segment showed remarkable financial strength, generating revenues of EGP 2.7 billion and an impressive Adj. EBITDA margin of 50%.
ODE Hotels’ established business model has once again yielded remarkable quarterly results, successfully navigating various macroeconomic and geopolitical challenges. In Q2 2025, our hotels generated revenues of EGP 1.5 billion, representing a 31.7% increase over Q2 2024. This revenue growth resulted in a GOP of EGP 891.8 million, representing an impressive 76.6% increase from the same quarter last year. Key factors driving this growth include our hotels’ ability to maintain high occupancy rates alongside a strategic increase in room rates. Despite ongoing conflicts in Gaza, we have maintained solid margins, achieving an Adj. EBITDA of EGP 800.2 million, representing a notable 38.3% increase from Q2 2024, with a margin improvement to 53%, up from 50% in Q2 2024. In 1H 2025, total hotel revenues surged by 45.5% to EGP 2.7 billion, with GOP escalating by 71% to EGP 1.5 billion year-on-year. Furthermore, Adj. EBITDA experienced a significant 56.6% uptick to EGP 1.35 billion in 1H 2025, reflecting an enhanced margin of 50% compared to 47% previously, driven by ongoing improvements in operational efficiencies. This impressive performance underscores the resilience and agility of our hotels in navigating and overcoming significant industry challenges. It solidifies our position as a leader in the hospitality sector, reflecting our ongoing commitment to operational excellence, strategic innovation, and sustainable growth.
Group recurring income assets: Strong recurring income growth, with revenues up 42.6% to EGP 1.9 billion.
The commercial assets segment continues to serve as a reliable source of cash flow, playing a critical role in financing the group’s expansion and mitigating the effects of economic downturns resulting from unforeseen circumstances. In Q2 2025, we reported a notable revenue increase of 37.0%, reaching EGP 941.7 million alongside our Adj. EBITDA increased by 33.5%, reaching EGP 322.9 million compared to Q2 2024. As a result, the revenue for our commercial assets segment increased to EGP 1.9 billion during 1H 2025, representing a significant 42.6% increase compared to the same period in the previous year—additionally, the Adj. EBITDA achieved a commendable growth of 42.8%, to EGP 684.3 million, thereby resulting in a margin of 36.2%. This performance reflects the segment’s ongoing resilience and adaptability in a dynamic market environment.
