Orascom DH in the red after nine months despite higher revenue
Published: Thursday, Nov 14th 2024, 08:50
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The real estate developer and hotel operator Orascom DH generated higher revenue in the first nine months of 2024. Currency losses and one-off effects pushed the company, which holds a stake in Andermatt Swiss Alps, into the red. Orascom has still not issued guidance for the year as a whole.
Sales rose by 7.6 percent to CHF 437.0 million from January to September, as the company owned by the Egyptian entrepreneurial Sawiris family announced on Thursday. Meanwhile, adjusted operating profit (EBITDA) rose by 16.5 percent to 128.8 million. The corresponding margin was 29.5 percent, compared to 27.2 percent in the previous year.
Currency losses burden the result
However, the bottom line was a loss of CHF 17.1 million, compared to a surplus of CHF 27.8 million in the previous year. This was mainly due to currency losses of 40.5 million francs, mainly due to the weakness of the Egyptian pound.
The sale of the RAK Hotel also had a negative impact of CHF 11.0 million, as did losses of CHF 8.6 million from the associated company Andermatt Swiss Alps. The latter is 49 percent owned by Orascom DH, the rest is privately owned by Samih Sawiris.
The loss attributable to shareholders amounted to CHF 30.2 million, compared with a profit of CHF 10.0 million in the previous year.
Tensions in the Middle East
The company speaks of a "challenging environment". In addition to the macroeconomic difficulties, there were also geopolitical tensions in the Middle East with the conflict in the Gaza Strip, according to the communiqué.
Nevertheless, turnover in the hotel sector remained constant compared to the previous year at CHF 107.6 million. High occupancy rates and higher room prices contributed to this. Orascom owns hotels in Egypt, Oman and Montenegro, among others.
The real estate business also performed well. Sales figures reached their highest level ever after nine months. New property sales amounted to 206.3 million and contributed to a total sales value of 617.3 million.
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