Financial Performance
Operational and Financial Performance
2022 was a transformative year for Madinet Masr as we delivered outstanding operational and financial results, demonstrating the success of our Company’s growth strategy. Results were driven by record-breaking gross contractual sales, new project launches, rapid growth in unit deliveries, and extensive portfolio cleanup measures.
Financial Performance
Revenue
During 2022, we booked a record revenue of EGP 5,155.3 million, up 145.8% y-o-y. Strong top-line growth was primarily driven by a rapid rise in unit deliveries, with further momentum coming from the growth in gross contracted sales. Revenues related to deliveries stood at EGP 2,990.5 million, whereas new sales generated EGP 2,415.3 million in revenue. At the close of the year, we had an unrecognized revenue backlog of EGP 11,942.3 million, calculated at the nominal price of undelivered sales.
Gross Profit
Gross profit recorded EGP 1,996.5 million in 2022, an increase of 170.5% y-o-y, with gross profit growth driven by strong top-line expansion during the year. Gross profit margin reached 38.7% in 2022 up from 35.2% in 2021, despite the higher contribution of unit deliveries relative to new sales in the revenue mix and the lower margins associated with delivery revenues.
EBITDA
Following strong top-line expansion, EBITDA stood at EGP 1,355.7 million in 2022, up 153.0% y-o-y. The EBITDA margin reached 26.3% in 2022 compared to 25.5% one year previously despite the increase in the share of deliveries and their typically lower profit margins in the Company’s revenue mix.
Net Profit
Net profit stood at EGP 747.4 million in 2022, climbing 164.5% y-o-y on the back of rapid top-line expansion. Net profit margin reached 14.5% in 2022 up from 13.5% in 2021 despite a higher contribution of unit deliveries in our revenue mix and their lower associated profit margins.
Debt
At the end of 2022, outstanding debt stood at EGP 3,321.9 million, down 11.2% y-o-y due to the partial repayment of sale and leaseback liabilities. In line with the decline in outstanding debt, debt-to-equity ratio stood at 68.2% at year end, down from the 98.8% in 2021. In parallel, net debt came in at EGP 1,485.1 million as at 31 December 2022, down from EGP 2,631.2 million at the close of 2021. Consequently, the net debt-to-EBITDA ratio dropped to 1.1x at year end 2022, down from 4.9x as at 31 December 2021. This comes as part of our strategy to optimize efficient utilization of borrowing to support growth and manage financial risk.
Notes Receivable
We held EGP 3,950.1 million in notes receivable at the close of 2022, of which EGP 1,770.4 million were shortterm receivables, EGP 1,759.3 million were long-term receivables, and EGP 420.3 million were due from customers. Our cumulative gross securitized receivables reached EGP 744.4 million as of 31 December 2022. We ended the year with a receivables-to-net debt ratio of 2.7x, up from the 1.3x recorded at year end 2021.
Cash & Cash Equivalents
Our liquidity position is strong, with total cash and cash equivalents at year-end 2022 standing at EGP 1,836.8 million, up 65.3% from the close of 2021. This rise is attributable to the decrease in CAPEX spending and the increase in new sales.