Madinet Masr, one of Egypt’s leading urban community developers, announced its consolidated financial results for the 3-month period ended 31 March 2025 (Q1 2025). Starting this quarter, the Company will report its consolidated financial results, including its subsidiaries operating across construction, real estate investments, and other related business lines. For the first quarter of the year, Madinet Masr reported a net profit of EGP 794.9 million on total revenue of EGP 2.6 billion, with contracted sales exceeding EGP 11.5 billion.

Key Highlights
• Madinet Masr booked gross contracted sales of EGP 11.5 billion for Q1 2025, down 22.9% year-on-year, amidst a real estate market correction period compared to record-highs last year.
• The Company increased its unit deliveries during Q1 2025 to 1,013 units, up 623.6% year-on-year from the 140 units delivered last year, a significant increase compared to the same period last year.
• Madinet Masr recorded total revenue of EGP 2.6 billion in Q1 2025, down 16.7% year-on-year, due to a decline of 23.4% in revenues from new sales compares to last year. This decline comes as the market normalizes from exceptional demand last year, when widespread economic uncertainty had fueled a sharp rise in real estate investments.
• Madinet Masr’s gross profit booked EGP 1.7 billion in Q1 2025, decreasing 30.9% year-on-year on the back of decreased revenues and higher operating costs. This quarter’s gross profit margin came at 65.2%, compared to 78.6% during the same period last year.
• Madinet Masr recorded an EBITDA of EGP 1.0 billion for Q1 2025, declining 33.5% year-on-year, yielding an EBITDA margin of 40.7%.
• Net profit stood at EGP 794.9 million for Q1 2025, declining 32.6% year-on-year in line with the overall decrease in the top line, with its associated margin normalizing to 31.0% for the quarter.
• On the balance sheet front, Madinet Masr closed Q1 2025 with a consolidated net debt position of EGP 675.3 million, an improvement of 19.2% in debt, compared to a consolidated net debt position of EGP 835.6 million at the end of FY 2024.
• Notes receivable recorded EGP 3.4 billion as of 31 March 2025, up from EGP 2.4 billion at year-end 2024, yielding a receivables/net debt ratio of (5.07) for Q1 2025 versus (2.92) at the close of FY 2024. Total accounts and notes receivable, including off-balance PDCs for undelivered units, amounted to EGP 66.1 billion as of 31 March 2025 compared to EGP 57.7 billion as of 31 December 2024.
• Cash collections increased by 1.7% year-on-year to EGP 3.4 billion in Q1 2025 from EGP 3.3 billion in Q1 2024, reflecting improved collection efficiency.
• Madinet Masr deployed EGP 1.5 billion in construction and infrastructure CAPEX in Q1 2025, up 44.5% from EGP 1.1 billion in Q1 2024, as the Company accelerated project execution and deliveries across its developments.

Management Comment

As we kick off the new year, I am pleased to present another strong set of financial and operational results, which showcase the resilience of our business model and the continued attractiveness of our value proposition. Our performance for the quarter in part reflects a high base effect resulting from exceptional sales during the comparable three-month period of last year, when widespread economic uncertainty had fueled a surge in real estate investment. Amidst a sector-wide normalization, we have successfully sustained our market position supported by a growing and increasingly diversified portfolio which continues to effectively cater to our customers’ evolving needs and tastes.
Diving deeper into this quarter’s performance, the key highlight for us was without a doubt the remarkable growth of 623.6% in unit deliveries, which surpassed the 1,000 units mark for the quarter. This noteworthy performance directly reflects a series of strategic initiatives undertaken over the past twelve months to boost construction and unit deliveries and capitalize on the robust demand for our developments. In line with this, CAPEX outlays for the period jumped 44.5% year-on-year to EGP 1.5 billion while our unrecognized revenues backlog continued to grow in Q1 2025, recording EGP 73.1 billion compared to EGP 64.9 billion this time last year. Despite the previously mentioned sector-wide normalization witnessed during the first three months of 2025, we reported encouraging financial results across the board, with margins remaining above our historical averages supported by a Company-wide strategy to optimize spending and boost operational efficiencies.
While navigating a fluid macroeconomic environment to deliver on our short-term targets, we also took meaningful steps towards our long term vision. During the quarter, we continued to invest in our innovative solutions for real estate ownership, maintenance, and facility management: Touba, Theqa, and SAFE. We take pride in being a leader in transformative real estate solutions in the Egyptian market, providing existing and potential customers with all-rounded solutions that cater to their diverse real estate needs. Our solutions place us at the forefront of Egypt’s innovative real estate landscape, aligning Madinet Masr with cutting-edge global technologies and emerging trends.
Heading into the summer months, we remain confident in our ability to grow our developments and deliver on our commitments. With a strong project pipeline, a diversified subsidiary base, and a proactive approach to market trends, Madinet Masr is well-positioned to sustain growth and generate long-term value for all of its stakeholders.