Record sales for MNHD in 2022: Madinet Nasr Housing and Development’s (MNHD) net income more than doubled in 2022 on the back of a surge in revenues, the company said in its earnings release (pdf) yesterday. Net income surged 165% y-o-y to EGP 747 mn during the year after a rise in deliveries and record-breaking gross contracted sales caused revenues to more than double to EGP 5.2 bn.

Sales climber in terms of both number and value of units sold: MNHD’s gross contracted sales more than tripled to a record EGP 11.2 bn on the sale of 3.2k units in 2022, triple the number of units it sold a year before. More than half of sales were in the company’s Taj City project, with the remainder coming from Sarai. Meanwhile, deliveries doubled to more than 2k during the year. MNHD’s newly-acquired subsidiaries Minka and related special purpose vehicle EgyCan generated another EGP 1.2 bn in sales that didn’t show up in MNHD’s consolidated results 2022, it said.

On a 4Q basis: Net income grew more than eightfold to EGP 202.5 mn on revenues of EGP 2.15 bn, up 173% on 4Q 2021.

Shareholders are in line for a payout: The board has proposed paying out a dividend of 15 piasters per share, according to an EGX disclosure (pdf).

What they said: “Despite a challenging operating environment, we pushed ahead with our growth,” management said. “While inflationary pressures have generally hindered consumer purchasing power, it benefitted MNHD as people resorted to the real estate market to safeguard their financial interests.”

SOUND SMART- In real estate, sales ≠ revenues. With off-plan sales dominating the industry, most real estate companies book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project. In most cases, then, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.

ECONOMIC HEADWINDS WEIGH ON GB AUTO REVENUES-

MNT stake sale boosts GB Auto amid challenging market conditions: GB Auto’s net income rose in 4Q 2022 thanks to the sale of its stake in MNT Investments, according to its earnings release (pdf) released yesterday. The company reported EGP 8.7 bn in net income in the final quarter of the year, up from EGP 412.6 mn the year prior, after recording a EGP 8.2 bn gain from the sale of a 7.5% stake in the Netherlands-based payments company.

FX shortage + import crisis hits revenues: The company’s revenues fell almost 25% y-o-y to EGP 6.9 bn during the quarter on what it described as “challenging market conditions.” A shortage of FX and import restrictions caused the passenger car market to contract by almost 75% during the quarter, causing revenues from the segment to decline by more than 60% to EGP 1.4 bn, it said.

Financing arm sees growth: GB Capital reported a 11% increase in revenues while net income rose 25% to EGP 847.1 mn excluding proceeds from the MNT sale.

In 2022: The company’s net income rose 26% to EGP 1.8 bn (excluding the MNT gains) in 2022 even as revenues slipped 5% to EGP 29.8 bn.

What they said: “The past year has truly tested the resilience of our business model and the strength of our market position. We believe that the CBE’s adoption of a flexible exchange rate will ease import restrictions and improve supply levels in the course of 2023. However, inflationary pressures are likely to persist. We expect the market will take a few quarters to stabilize and we will closely monitor the effects of inflation on purchasing power and consumer demand across our lines of business,” GB Auto CEO Nader Ghabbour said.