As the year 2021 progresses, revenue revues of the first quarter of the year are being released across all developers in Egypt. In this article, the financial situation of Palm Hills Developments is discussed in further details.
In the financial period ending on 31 March 2021, Palm Hills Developments has achieved revenues of EGP 2bn. This amount reflects a growth of 74% in comparison to 2020. Overall, Palm Hills sold 488 units, which represents a growth of 87% year on year, and delivered 344 units creating a remarkable increase of 155% than the previous year.
The astounding growth followed the peak in new sales in both residential and commercial areas of the developments. This was largely supported by strong demand for Palm Hills New Cairo, Badya, and the newly launched Palm Hills New Alamein.
Ready-to-move properties sold and recognized during that period as well as the contribution form presented the cherry on top for the sales surge. That is in addition to the year on year increase in handed over units.
New sales were reported to have almost doubled reaching EGP 3.4bn, which is a growth of 98% in relation to the previous year. This was backed up by the recovery in home buying transactions across all regions, which started during the second half of 2020, topped off by the demand for ready-to-move units, and outstanding commercial sales in East and West Cairo.
Palm Hills Developments continues to outpace their handover schedule in all their projects on contractual delivery dates, and is staying ahead of schedule in many projects, including The Crown and Palm Hills New Cairo, where they started to hand over units at the beginning of 2021. The company ended the first quarter of 2021 with a Net Debt of EGP 1.0bn, which boasts a decrease of EGP 1.2bn. Meanwhile, the company’s balance sheet remains healthy . It showcases a total equity of EGP 9.4bn and receivables of EGP 22.9bn, which covers the net debt 22 times; whereas the net debt/EBITDA stood at 0.7 times, backed up by the steady improvements in the company’s cash flow position.
The developer recently concluded its sixth securitisation transaction successfully for a total receivables amount of about EGP 1.2bn that further strengthens their balance sheet. Palm Hills Developments have securitised gross receivables of almost EGP 5.1bn since they’ve started the securitisation program in 2016.
Moreover, the securitisation program has helped Palm Hills Developments immensely in speeding up its construction schedule ahead of plans throughout its projects. This has lead to early deliveries across almost all projects.
In a Nutshell
Palm Hills Developments have seen an astounding increase in revenue this quarter. Dedicated to creating communities that live up to their potential, Palm Hills Developments has seen an unexpected increase in its inbound cashflow. In the first quarter of this year, Palm Hills Developments has seen 127.6 million EGP in revenue, a significant increase from the 76.3 million EGP in the first quarter of 2020. Analysts say that the company is on track to more than double its revenue in 2021.
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