In 2024, ODE has exemplified an outstanding ability to sustain a positive growth trajectory, achieving impressive financial and operational results. This success has been realized despite significant challenges, including a foreign exchange loss of EGP 1.8 billion. Our resilient and diversified business model has been crucial in mitigating the negative effects of inflation that have impacted numerous sectors. This accomplishment underscores our steadfast commitment to innovation and operational efficiency, which have proven essential in navigating the complexities of the market. Importantly, we’ve experienced exceptional growth in real estate sales, which has significantly bolstered our overall revenue. Our relentless pursuit of operational excellence has also led to improved adjusted EBITDA, reflecting our capability to manage costs while maximizing profitability. Additionally, our net profit has demonstrated impressive growth, and all associated margins—key indicators of financial health—have also improved, highlighting our operational success this year. These record-breaking results reflect our strategic vision, meticulous planning, and the unwavering dedication of our teams in driving ODE forward through a challenging economic landscape.
Financial Review:
Q4 2024:
With solid operating and financial results, ODE’s fourth quarter highlights our adept execution capabilities and resilience in the face of significant challenges.
Total revenue: In Q4 24, revenues increased by 27.4% to EGP 6.3 billion. The increase was due to exceptional growth in recurring income segments (hotels and commercial assets), which contributed EGP 2.3 billion to total revenue, marking an impressive 70.3% increase compared to FY 23. In addition to the land sale concluded during the period in El Gouna.
Gross profit: During the quarter, the gross profit increased by 54.4%, reaching EGP 2.6 billion, accompanied by a gross margin of 41.6%. This substantial growth was primarily attributed to our enhanced business performance across all segments and the land sale concluded during the quarter.
Adj. EBITDA: Adjusted EBITDA elevated by 50.0% to EGP 2.7 billion, boasting a 42.4% margin vs. 36.0% margin in FY 23.
Net income: The company’s net profit increased by 11.6% to EGP 1.2 billion.
Land sales: Sold a 26,532 sqm land plot at the back end of El Gouna, an extension to the land previously sold during 1H 24. The total transaction value for this land amounts to c. EGP 370 million (USD 274/sqm).
FY 2024:
ODE has reported robust results, demonstrating significant growth despite all the challenges.
Revenue growth: An outstanding increase of 42.2% to reach EGP 21.8 billion.
Real estate revenue: Increased by 28.5% to EGP 12.9 billion compared to FY 23, with a margin of 39.4% vs. 38.8% in FY 23.
Recurring income segments: Experienced exceptional growth in recurring income segments (hotels and commercial assets), contributing EGP 7.3 billion to total revenue, marking an impressive 48.0% increase compared to FY 23.
Gross profit: Increased by 58.8% to EGP 8.7 billion, boasting a healthy margin of 40.0% vs. 35.8% in FY 23. This improved performance underscores our operational excellence and the positive impact of key strategic initiatives such as land sales and accelerated construction activities.
Adj. EBITDA: Adj. EBITDA showed robust growth, expanding by 62.5% to a record of EGP 9.3 billion, with a margin of 42.9% in FY 24.
Other gains and losses: A loss of EGP 2.6 billion was reported, mainly due to foreign currency debt resulting from the EGP’s devaluation.
Finance costs: Increased by 49.3% to EGP 1.7 billion, primarily due to rising interest rates.
Strong net income performance: ODE’s adjusted net income, excluding one-offs (forex losses), increased by 55.5% from EGP 3.4 billion in FY 23 to EGP 5.3 billion in FY 24. Meanwhile, the reported net income during FY 24 increased by 10.5% to reach EGP 3.4 billion vs. EGP 3.1 billion in FY 23.
Cash from operations: Increased by 151.5% to EGP 7.1 billion, driven by improved operational performance across all business segments. This robust growth underscores our commitment to operational excellence.
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 7.4 billion, our foreign currency cash stood at USD 77.4 million, and our net debt reached EGP 2.8 billion in FY 24.
Group Real Estate segment: achieved unprecedented operational and financial milestones, with a 67% increase in net real estate sales, reaching EGP 32.5 billion. This marks the highest sales figure in ODE’s history.
The fourth quarter of 2024 marked another record-breaking period for the company, with total sales reaching EGP 9.3 billion, a remarkable 46.8% increase from EGP 6.3 billion in Q4 23. This achievement brings our cumulative real estate sales value to an unprecedented EGP 32.5 billion, reflecting a significant 67.1% growth. Our international sales continue to be a cornerstone of our strategy, accounting for nearly 41% of our real estate sales in FY 24, up from 37% in FY 23. This underscores ODE’s robust market presence and the trust we have earned from our customers. Among our projects, O West is the largest contributor to sales, representing 39% of the total, El Gouna at 38%, and Makadi Heights at 23%. Additionally, we have successfully increased our average selling prices per square meter across all destinations. The robust sales and construction activity growth has enhanced our real estate revenue by 3.3%, reaching EGP 3.8 billion in Q4 2024. Consequently, our total real estate revenues for FY 24 have risen to EGP 12.8 billion, reflecting an increase of 28.5%. Additionally, our Adj. EBITDA grew by 30.3% to EGP 5.1 billion for FY 24, with a margin of 39.4% as opposed to 38.8% in FY 23, reaffirming our commitment to operational excellence. Throughout 2024, we recorded a 46.9% increase in real estate cash collections, totaling EGP 14.7 billion. Furthermore, the total deferred revenue from real estate, which will not be recognized until 2029, has increased by 65.4% to EGP 37.3 billion. This trend provides substantial visibility regarding our real estate revenue across all destinations over the coming 3 to 4 years.
Group hotels segment: Achieved record-breaking revenues in 2024 amidst global challenges, showcasing resilience and industry leadership. Revenues were up by 42% to EGP 4.3 billion, with an Adj. EBITDA margin of 48%.
ODE Hotels delivered strong quarterly results driven by its well-established business model. Our hotels recorded revenues of EGP 1.4 billion, marking a notable 78.8% increase over Q4 23. This revenue growth drove our GOP to EGP 782.2 million, demonstrating a 95.1% increase vs. Q4 23. The ability of our hotels to maintain high occupancy rates and enhance room rates has been instrumental in fueling this growth. Despite the conflict in the Middle East, we have managed to sustain a healthy margin and achieve robust financial outcomes. We have achieved an Adj. EBITDA of EGP 700.4 million, representing a 98.9% increase from Q4 23. In FY 24, total hotel revenues increased by 41.6% to EGP 4.3 billion, with GOP also rising by 42.7% to EGP 2.4 billion compared to the previous year—moreover, Adj. EBITDA surged by 56.9% to EGP 2.1 billion in FY 24. This robust financial performance highlights our hotels’ resilience and adeptness at navigating a challenging market environment. Substantial investments have been allocated to elevate our properties, including upgrades and renovations to facilities and enhancements in technological infrastructure, all aimed at ensuring exceptional guest experience.
Group recurring income segment: A substantial increase in recurring income, with revenues rising by 58.4% to reach EGP 3.0 billion and a margin of 34%.
The commercial assets segment remains a dependable source of cash flow, crucial to funding our group’s expansion and mitigating cyclical downturns from unforeseen events. It is central to our future strategy. In Q4 24, revenue surged by 58.9% to EGP 903.7 million, while Adj. EBITDA grew by 58.1% to EGP 259.3 million compared to Q4 2023. This brings our commercial assets segment revenue to EGP 3.0 billion for FY 24, marking a 58.4% increase from FY 23. Adj. EBITDA outpaced revenue growth, reaching EGP 1.0 billion, up by 77.4%, Adj. EBITDA margin reached 34% vs. 30% in FY 23, demonstrating operational excellence through successful restructuring, improved service quality and increased profitability.
