Palm Hills Developments Company Reports Audited Consolidated and Standalone Earnings Results for the Full Year Ended December 31, 2017 and Consolidated Earnings Results for the Fourth Quarter Ended December 31, 2017; Provides Earnings Guidance for the Fiscal Year 2018
In the fourth quarter of 2017, the company's revenue slightly decreased to EGP 1.8 billion due to the year-over-year change in mix of units/projects sold coupled with lower handed over units of 441 units. While EBITDA grew 30% year-over-year to EGP 409 million, mostly on the back of lower SG&A and cost of revenue. Net profit for the quarter recorded EGP 339 million, a growth of 44% year-over-year, despite the increase in interest charges.
For the year, on standalone basis, the company reported net profit of EGP 243,117,925 compared to EGP 295,859,236 a year ago.
In 2018, the company expects a healthy demand for primary housing driven by ongoing house formation and growing migration trend from the capital city of Cairo to the Eastern and Western suburbs. The company is eyeing new sales of EGP 12 billion for the year, to be fueled by the launch of the 3,000 feddan project in West Cairo which will cater to various income brackets alongside the company's first project in Alexandria and more phases within recently launched projects. On the P&L front, the company is targeting a top line of more than EGP 6.8 billion, net profit of more than EGP 800 million. The company is planning to hand-over 1,500 units and spends EGP 2.0 billion on construction during fiscal year 2018.