Timely notification pursuant to Art. LR.
Orascom Development Holding (“ODH”) (SIX ODHN. SW) has published its consolidated monetary effects for the 2023 monetary year.
ODH delivered a strong performance, with real estate sales of CHF 704. 2 million and a net profit of CHF 54. 4 million in the monetary year 2023, despite a challenging business environment.
Fourth Quarter 2023 Highlights
Altdorf, March 26, 2024 – The 2023 monetary year posed a challenging business environment with several headwinds for ODH. We maintained our momentum despite the usual global pressures, emerging inflation, and geopolitical instabilities, in parallel with the devaluation of the EGP, which in particular impacted our operating results. Our diversified business style enabled the core underlying business to deliver resilient functionality in 2023. We ended the year strong, supported by our flexible and dynamic business style and their ability to adjust methods while introducing new products tailored to our customers. . This has allowed us to triumph over challenging economic situations and maintain ODH’s expansion trajectory. We will continue to stick to our strategy after it has shown success in previous cycles. By 2024, we have a transparent strategy to drive successful expansion, creating an even more agile and successful business to create more value.
Financial analysis
2023 financial year:
ODH adj. EBITDA decreased by 6. 6% to CHF 174. 4 million in fiscal 2023, with a margin of 26. 6%, from CHF 186. 7 million, with a margin of 27. 1% in fiscal 2022. General and administrative expenses decreased by 26. 0% to CHF 32. 7 million in fiscal year 2023. Other profits and losses recorded a loss of CHF 20. 2 million in fiscal year 2022. of fiscal year 2023, basically due to a one-time currency loss similar to the devaluation of the EGP against foreign currencies. ODH’s equity accounted companies’ percentage recorded a profit of CHF 5. 8 million compared to CHF 23. 7 million for the monetary year 2022. The weakest functionality of the company’s percentage in Andermatt in the Swiss Alps boosted functionality, resulting in a profit of CHF 1. 6 million. for the monetary year 2023 compared to CHF 16. 9 million for the monetary year 2023. 2022, which included exceptional operations. Financial expenses increased by 32. 5% to CHF 50. 1 million due to higher interest rates. Despite a challenging global market environment, ODH ended the year with a net profit of CHF 54. 4 million, up 6. 0% compared to monetary year 2022.
Fourth Quarter 2023:
ODH generated strong operating and monetary effects in the fourth quarter of 2023. Revenue increased by 0. 9 percent to CHF 232. 4 million compared to the fourth quarter of 2022, and adjusted EBITDA of the result remained at CHF 61. 1 million, with a margin of 26. 3%. Although the percentage of affiliates recorded a profit of CHF 6. 0 million, compared to CHF 12. 7 million in the fourth quarter of 2022, primarily due to the lower functionality of our Andermatt Swiss Alps percentage in the quarter, our EBITDA increased to 37. 7%. to CHF 58. 1 million in the fourth quarter of 2023. In addition, net functionality increased by 50. 3% to CHF 26. 6 million, compared to CHF 17. 7 million in the fourth quarter of 2022.
Group Real Estate: It remained strong and resilient despite the effect of the devaluation of the EGP and the increase in structural costs.
Group Hotels: Despite the current tensions in the Middle East, the hotel portfolio demonstrated impressive performance, with a notable 19. 4% increase in revenue to CHF 170. 1 million.
With strong expansion in 2023, the positive performance of our hotels during the year reflects our resilience and leadership in all markets amid various global macroeconomic and geopolitical challenges, specifically in the Middle East. Demand for our hotels remained physically strong during the year, with 2. 7 million visitors benefiting from our exclusive product offerings, a significant increase of 15% compared to fiscal 2022. The good fortune of our hotels can be attributed to the commitment to offering exceptional services. guest reporting and the ability to temporarily adapt to changing market conditions. Our hotels experienced an increase in quarterly demand, with a profit of 8. 7% to CHF 45. 9 million compared to the fourth quarter of 2022. This brought our GDP to CHF 20. 5 million, an increase of 12. 0% compared to the fourth quarter of 2022. 2022. In 2023, we saw a physically powerful occupancy rate. and a significant expansion of hotel ARR, which increased our hotel profit by 19. 4% year-on-year to CHF 170. 1 million in fiscal 2023, surpassing pre-Covid levels. This caused our GDP to grow by 42. 9% to 72. 5 million Swiss francs. The acceleration of TRevPAR expansion expanded our operating leverage and enabled us to generate CHF 54. 1 million of adjusted profit. EBITDA, an increase of 64. 9% compared to fiscal year 2022 with a margin of 31. 8%. The expansion we have experienced during the analyzed era is basically due to our well-adapted marketing and pricing strategy implemented in all our hotels.
Advertising assets with recurring profits: taking advantage of increased activity in our destinations
The Advertising Assets segment continues to be a key source of cash flow, playing a very important role in financing the Group’s expansion and protecting our operations from cyclical downturns that could conceivably occur due to unpredictable events. However, in 2023, the devaluation of the EGP had an impact This had a negative effect on the segment’s results, leading to a profit drop of 14. 5% to CHF 71. 6 million.
El Gouna, Red Sea:
The figures continued in local currency despite the fall of the CHF due to the devaluation of the EGP. In the 2023 monetary year, new asset sales remained strong at CHF 222. 1 million compared to the 2022 monetary year. Average advertising value increased In local currency, net sales increased 71. 2% to EGP 7. 6 billion, the highest sales ever recorded since inception, while average advertising values increased 78. 6% compared to fiscal 2022. On the structure side, in 2023, we delivered 388 games and expect to deliver approximately 370 games in 2024, while accelerating our structure speed.
El Gouna Hotels’ proven business style has delivered smart results. Occupancy rate for fiscal 2023 increased to 73%, to 70% for fiscal 2022. Strong occupancy rates and hotel average room rate (ARR) expansion of 2. 4% helped that El Gouna’s hotel profit segment grew by 9. 1% year-on-year. to CHF 80. 1 million in FY 2023. FY 2023. At EGP, profits grew by an impressive 88. 4% through FY 2022. El Gouna Hotel Building GOP increased by 22. 4% to CHF 45. 4 million until fiscal year 2022. Although we were affected by the EGP Devaluation, we are increasing our ARR. for hotels 2. 7% to CHF 84 in 2023. Regarding hotel development, we have completed the partial procedure at the Sheraton and Ocean View hotels, and we are advancing the structure procedure to incorporate 29 new rooms at the Casa Cook El hotel. Gouna through 2024. El Gouna’s overall profit decreased by 13. 1% to CHF 290. 2 million in fiscal year 2023. However, overall profit increased by 49. 6% in EGP through monetary year 2022.
O West, Egypt:
Hawana Salalah and Jebal Sifah, Oman:
In 2023, Oman’s ‘Khareef’ monsoon season will arrive later than usual in mid-October, impacting hotel occupancy rates. Despite this, Hawana Hotels maintained a positive trend, with profits increasing by 57% from CHF 27 million in fiscal 2022 to CHF 42. 4 million in fiscal 2023. Occupancy building increased through 20 foundation emissions up to 61% in fiscal 2023. In 2023, TRevPAR construction increased by up to 57. 4% to CHF 107 and PAR GOP construction increased by up to 208. 3% to CHF 37 compared to the fiscal year 2022. The hotels experienced an impressive increase of 195. 9% to CHF 14. 5 million at the GOP point in fiscal year 2023. On the progression side, The construction of 123 additional rooms in the hotel will have been completed Al Fanar until December 2023, thus meeting Oman’s minimum structural obligations. In real estate terms, real estate net sales fell by 39. 0% to CHF 22. 5 million in fiscal 2023, while real estate profits fell by 13. 9% to CHF 17. 4 million. CHF. of CHF. Hawana Salalah’s total turnover increased by 25. 4% to 64. 1 million Swiss francs. The Jebal Sifah destination experienced a decline in asset sales, resulting in a year-end figure of CHF 11. 1 million for fiscal 2023, a 32. 3% cut compared to fiscal 2022 This decline also affected the overall functionality of the destination. Jebel Sifah’s overall profit decreased by 8. 4% to CHF 25. 0 million in fiscal 2023.
Luštica Bay, Montenegro:
During the fourth quarter of 2023, the destination saw notable progress. Additional activities were introduced to enhance the overall appeal of the location, and regional sales efforts supported those efforts, contributing to the overall improvement. Real estate net sales remained strong, reaching year-end CHF 87. 9 million for fiscal year 2023 compared to CHF 90. 1 million for fiscal year 2022, a minimal decrease of 2. 4% year-on-year . It is worth noting that the fiscal year 2022 sales figures included a massive transaction of CHF forty-five million. Our average sales costs recorded a double-digit increase of 33. 7% to CHF 7,599/m2. We also managed to increase the speed of the structure in the fourth quarter of 2023, delivering 60 games in the reporting period. Regarding our hotel assets, The Chedi Hotel recorded a 14. 9% increase in profits to CHF 7. 7 million in fiscal 2023, driven by the creation of a growing ARR, which increased by 57Array0% to the 292 CHF. The hotels recorded a significant increase of 140. 0% to CHF 1. 2 million at the GOP point in fiscal year 2023. Luštica Bay’s overall profit growth increased by 49. 2% to CHF 66. 4 million.
Makadi Heights saw a significant increase in asset sales, marking the highest sales since project inception at CHF and EGP, with CHF figures increasing 63. 3% to CHF 78. 4 million. The number of sets sold in 2023 also saw a significant increase of 93. 8%, reaching 434. The activities of the real estate structure were accelerated, and the planned 400 sets were delivered in fiscal year 2023. Total profits at Makadi Heights decreased by 4. 7%, mainly due to the devaluation of the EGP, to CHF 30. 6 million. At EGP, profit generation increased 64. 5% compared to fiscal 2022.
Taba Heights, Egypt:
Taba Heights continues to pose a challenge for the band. Despite this, ongoing efforts to repair the destination’s position on the overseas travel map have yielded positive results. Unfortunately, the war in Gaza has interrupted this progress. Our goal is to minimize the rate of spending money in the short and medium term while ensuring that the destination can function once tourism resumes. We remain committed to a cautious approach in our efforts to mitigate the impact of the existing crisis. Taba’s overall profit in fiscal year 2023 reached CHF 14. 0 million, up 35. 9% compared to fiscal 2022. To date, we only have one in six hotels in operation, with minimal occupancy rates.
Presentation:
The related monetary statements and presentation can be found in the IR segment of the Orascom Developments website at the following links:
https://www. orascomdh. com/relaciones-inversores
Conference call at 14:00 CET (Zurich time):
The main login points are as follows:
Click to view the webinar link
Event number: 975 0075 0551
Event Password: 503191
Investor Contact:
Ahmed Abou Ella
Director of Investor Relations
Phone: 20 224 89
Email: ir@orascomdh. com
About Orascom Development Holding AG:
Orascom Development Holding is a leading foreign developer specializing in colorful, incorporated communities in Europe, the Middle East, and North Africa. For more than 30 years, Orascom Development has been a pioneer in creating destinations where others are encouraged to live, paint and play. with love and determination.
From Egypt’s beautiful Red Sea coast, the city of El Gouna to the stunning mountain destination of the Swiss Alps of Andermatt, each and every planned network is a testament to Orascom Development’s commitment to creating places at their best. Incorporated cities seamlessly blend residential spaces with award-winning residential spaces. gaining personal villas, apartments, hotels, and recreational and advertising services, adding golf courses, marinas, sports facilities, retail stores, and restaurants.
For more information, visit https://www. orascomdh. com/.
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