Madinet Nasr Housing and Development’s (MNHD) revenues registered EGP 169.7m during the first quarter (Q1) of 2016, a 176% increase in a year-over-year comparison, according to the company’s standalone financial results issued on Sunday.
Gross and bottom-line profitability remained at a solid 65.3% and 39.1%, respectively, with net profit after tax standing at EGP 66.4m, an almost two-fold increase compared to Q1 of 2015 when it registered EGP 33.7m.
Revenue growth continues to be driven by unit sales in MNHD’s various projects as well as unit deliveries at the company’s Tag Sultan development, with a deliveries target of 450 units for 2016.
On a consolidated basis, revenues in Q1 of 2016 came in at EGP 237.7m, up 103% year-over-year. Net income is EGP 68.6m, recording a 90% increase compared to the same period last year.
Consolidated financials include the results of two contracting companies owned by MNHD. Meanwhile, MNHD’s contracted sales during Q1 of this year stood at EGP 211.5m, up 143% year-over-year compared to the EGP 87.2m posted in Q1 2015.
“We expect to continue delivering strong results going forward on the back of the growth strategy we began implementing in 2015, highlights of which include our strategic co-development agreement with Palm Hills Developments (PHD), which will see us monetise our SARAI land bank, as well as amend of our master plan for our flagship Taj City development, which is expected to be finalised this year. This will allow for better accommodation of the project’s amenities and facilities,” said MNHD CEO Ahmed El-Hitamy.
MNHD has more than 7,600 units under development or design in five key projects in the Greater Cairo Area, offering exposure to a broad socioeconomic spectrum of consumers.
The second phase of Taj City launched this month and when completed, the EGP 25bn Taj City project will feature a variety of residential communities.
Meanwhile, at the company’s 5.5m sqm SARAI land plot—located in New Cairo and in close proximity to the new administrative capital of Egypt—MNHD is co-developing its Capital Gardens project with PHD. It will be developed in four phases with unit deliveries for the first phase scheduled to be completed before the end of 2019.
MNHD will begin recognising revenues from Capital Gardens starting in Q2 of 2016.
Additionally, MNHD is launching phase one of its SARAI development during the second half of 2016, and is considering an EGP 1bn long-term debt facility to speed-up the land plot’s overall infrastructure build-out.