ORASCOM DEVELOPMENT EGYPT
ORHD
Real estateNegative News
Orascom Development Egypt Swings to EGP 984M Loss Amid Currency Devaluation in Q1-24
Orascom Development Egypt reports a EGP 984M Q1-24 loss due to currency devaluation, despite revenue growth in real estate and hospitality sectors.
May 15, 2024 at 11:26:00 AMScore: 88

Orascom Development Egypt (ODE) reported a consolidated net loss of EGP 984.5 million in Q1-24, a sharp reversal from a EGP 384 million profit in Q1-23. Revenues surged to EGP 4.17 billion, up from EGP 2.95 billion, driven by strong real estate and hotel performance. However, the Egyptian pound's devaluation triggered a EGP 2.4 billion foreign exchange loss, eroding profitability. Basic loss per share stood at EGP 1.05, compared to EPS of EGP 0.26 in Q1-23. Real estate revenues climbed to EGP 2.83 billion, while hotel revenues rose to EGP 698.8 million. Despite 2023's 63.5% annual profit jump to EGP 3.1 billion, currency volatility now clouds near-term prospects.
Recommended Actions
- Monitor ODE stock for potential volatility
- Consider currency risk exposure in Egyptian investments
- Wait for stabilization in forex markets before buying
- Check analyst price targets on platforms like TradingView
- Review company's debt levels and liquidity position
Positive Aspects
- 41% YoY revenue growth to EGP 4.17B
- Real estate sales up 41% to EGP 2.83B
- Hotel revenues increased 22% to EGP 698.8M
Negative Aspects
- EGP 2.4B foreign exchange loss from currency devaluation
- Net loss of EGP 984.5M vs profit in prior year
- EPS decline to -EGP 1.05 from +EGP 0.26