Breaking Barriers: Arab Developers Holding Leads in Sales and Profitability, Achieving Unprecedented Growth in 2023
Arab Developers Holding (ADH) continues its trend of record-breaking achievements, achieving its highest-ever sales and profits growth in 2023. Topping the list of most profitable stocks, the Company’s success is a testament to its commitment to excellence and innovation in the real estate sector.
ADH achieved contractual sales of EGP5.3 billion in 2023 – the highest in the Company’s history – compared to EGP2.6 billion in 2022, representing a 203% annual growth rate. This marks the highest sales growth percentage for companies listed on the Egyptian Exchange. ADH also successfully transitioned to profitability, recording a net profit of EGP100 million, a record growth rate of 649%.
- Advertisement -
These unprecedented financial and operational results are a culmination of the efforts of ADH’s board of directors, executive management, and all employees in implementing a comprehensive development plan focused on three pillars: firstly, developing human capital by leveraging the best talents in the real estate sector; secondly, maximizing the Company’s portfolio through substantial investments to develop its project portfolio and deliver units to customers; and thirdly, forming partnerships with major companies in its sector to provide the best quality service to customers.
ADH’s surge in sales was a result of an increase in the number of units sold, reaching 1819 units with a total area of approximately 220,000 square meters in 2023, compared to 1360 units with a total area of approximately 150,000 square meters in the previous year, representing a 103% increase. The company also succeeded in delivering 654 units with a total area of approximately 75,000 square meters, compared to 655 units with a total area of approximately 73,000 square meters in 2022.
The operational performance of ADH positively impacted various financial performance indicators in 2023. The Company achieved revenues of EGP1.3 billion in 2023, compared to EGP849 million in 2022, a growth rate of 149%. The total profit during the past year was EGP402 million, compared to EGP248 million in the previous year, a growth rate of 162%. Operating profits (profit before interest and taxes) reached EGP77 million compared to losses of EGP23 million, a growth rate of 442% in the comparative period. ADH also turned profitable, recording a net profit of EGP100 million in 2023, compared to losses of EGP18 million in 2022, a growth rate of 649%. Earnings per share reached EGP0.08 compared to losses of EGP0.01.
The cost-to-revenue ratio decreased from 71% in 2022 to 68% in 2023, while the total profit-to-revenue ratio increased from 29% in 2022 to 32% in the past year. The operating profit-to-revenue ratio increased from -3% to a growth of 6%, and the net profit-to-revenue ratio increased from -2% to a growth of 8%.
“We have developed a long-term strategic plan to develop our existing project portfolio by doubling our annual investment volume to accelerate implementation rates while adhering to the highest quality standards,” said Dr. Ayman Khalifa, CEO of ADH. “This plan has resulted in an unprecedented leap in our operational and financial results, despite the challenges faced by the Egyptian economy in general and the real estate sector in particular during the past year. Our executive management continues their efforts to develop our project portfolio. We intend to complete the development of the Dead Sea project and begin the Agadir Project as soon as the official procedures for this promising project are completed. We are also exploring new investment opportunities to expand our land portfolio by purchasing new lands in New Cairo and the North Coast, which are experiencing high real estate demand.”
ADH’s positive results have been reflected in the performance of the Company’s stock on the Egyptian Exchange, which rose by 260% in 2023, achieving the highest percentage increase among real estate companies listed on the Egyptian stock market, surpassing the main index’s increase of 65% and the real estate sector index’s increase of 65.5%. The stock’s positive performance continued, rising 758% by the end of trading on Thursday, March 8, maintaining its position at the top of the real estate companies index. This reflects shareholders’ confidence in the Company’s performance and positive expectations for its future in the coming period.
