Madinet Nasr for Housing and Development (MNHD) has reported EGP 1.79bn revenues for the first half (1H) of 2022, up by 101.1% y-o-y, driven by an increase in deliveries and strong growth in gross contracted sales. MNHD saw revenues of EGP 972.3m in the second quarter (2Q) of 2022, an increase of 120.3% y-o-y. The Company delivered a total of 832 units during 1H 2022, an increase of 136.4% y-o-y versus the 352 units delivered for 1H 2021. On a quarterly basis, MNHD delivered a total of 471 units for 2Q 2022, up by 207.8% y-o-y. MNHD deployed EGP 798.9m in construction and infrastructure CAPEX during the six-month period, down from the outlay of EGP 1,182.1m booked for 1H 2021 following the completion and delivery of several construction projects. The Company made CAPEX outlays of EGP 417.8m in 2Q 2022, down by 14.1% y-o-y from the EGP 486.3m deployed in 2Q 2021 Abdallah Sallam, CEO of the MNHD, said: "The Company is more confident than ever of its ability to build and deliver sustainable communities. Our teams have worked hard to maintain the positive momentum gathered during the first quarter to deliver strong operational and financial results. Our performance during the second quarter was very strong and has only cemented our confidence in the MNHD's new growth strategy following an already-impressive first quarter." "In April 2022, we launched Taj Ville, a premium villas compound located at our Taj City development. Taj Ville's focus on villas reflects our efforts to leverage our customers' aspirations for standalone units. Within just a few weeks, we had sold out all standalone villas at the project. Besides being a testament to the great potential of our undeveloped land bank at Taj City and Sarai, our success at Taj Ville speaks to homeowners' trust in the MNHD and their confidence in our value proposition. Remarkably, we drove this strong performance at Taj Ville despite launching the project at the tail-end of the holy month of Ramadan, traditionally a period of subdued activity in the real estate market." "Demand remains strong despite the headwinds, and we have been able to take full advantage of this strength through our stock of ready-to-move inventory, which further offers us a margin of flexibility in the face of an uncertain macro environment. We have also taken a strategic stance towards cancellations, designing our policy to relieve delinquent customers, enhance our collection, and release in-demand inventory. To date, we have implemented only limited price increases, consolidating buyers' confidence in our offering, a confidence which has been further deepened by the start of construction at the Shalya compound in Taj City." He added: "Moving forward, we expect the Company to continue delivering positive operational and financial results, and to give our customers even more reason for confidence and satisfaction. As we prepare a number of new launches and seek new growth opportunities over the coming period, we are optimistic and motivated for what the coming quarters will bring. We are confident that the MNHD will continue to outperform even the strong results that we have already achieved, and that the Company will successfully generate growth across its project portfolio in a manner that is sustainable and efficient."
