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Damac Properties Q1 net profit plunges 94% to Dh31 million


Damac Properties Q1 net profit plunges 94% to Dh31 million

 

Financial highlights for the first quarter of 2019:

•           Revenue at AED 896 million

•           Booked sales of AED 1.2 billion

•           Gross profit at AED 242 million

•           Total assets of AED 25.5 billion

•           Net profit of AED 31 million

•           Shareholders’ equity of AED 14.1 billion

•           Deliveries of 743 units

 

Dubai, UAE:

Damac Properties’ net profits for the first quarter of 2019 plunged 94 percent to Dh31 million, down from Dh484 million recorded in the first quarter of 2018, the developer’s reports show. It’s total revenue for the quarter also declined 53 percent to Dh896 million, with booked sales grew 15 percent t0 Dh1.2 billion, compared to Dh1 billion recorded in Q4 2018.

 

Gross profits for the same period stood at Dh242 million reflecting gross profit margins of 27 percent, a company statement said. Total assets stood at Dh25.5 billion compared to Dh25.2 billion as of 31 December 2018..

 

As of 31 March 2019, gross debt stood at Dh5 billion, cash and bank balances stood at Dh6.6 billion and development properties stood at Dh9.3 billion, largely unchanged from December 2018. Shareholders’ equity stood at Dh14.1 billion as at 31 March 2019.

 

As the company went into another busy handover season, Damac delivered 743 furnished apartments in Ghalia, a sharia-compliant residential tower. During the same financial period reported, over Dh430 million worth of contracts were awarded, the majority going towards key developments at various stages of completion.

 

Hussain Sajwani, Chairman of Damac Properties, said, “We started the year strong with sales of Dh1.2 billion in the first quarter of 2019, but remained conservative in our approach, to ensure that we are financially agile to take on new opportunities. Backed by positive cash flow, we also recently paid down the outstanding Sukuk worth Dh1 billion, and continue to invest heavily into our communities and on streamlining operations.”

 

“We thank and support the UAE’s leadership who have long cemented the country as a global hub for business and innovation. Their efforts and proactive response to global shifts have ensured that the UAE continues to grow from strength to strength,” Sajwani added.

 

“We also thank our employees, customers, partners, and shareholders who share our commitment to our vision for better communities, and have helped us transform Damac from its modest beginnings into a master developer with over 25,000 homes delivered.”