Emaar Properties (EMAAR) Q2 2024 earnings summary

Executive summary

• Achieved record property sales of AED 31.5 Bn in H1 2024, up 56% year-over-year, with robust revenue growth and strong profitability across all segments.

• Revenue for the six months ended 30 June 2024 rose to AED 14.41 billion, up from AED 12.27 billion year-over-year, with net profit increasing to AED 6.83 billion from AED 5.75 billion.

• Recurring operations contributed 32% of total revenues and 45% of total EBITDA, reflecting a diversified and resilient business model.

• Maintained a healthy balance sheet with net cash of AED 26.1 Bn and investment-grade credit ratings (BBB/Baa2) with a stable outlook.

• The interim financial statements received an unqualified review conclusion from the independent auditor.

Financial highlights

• H1 2024 revenues reached AED 14.4 Bn, a 17% increase year-over-year; EBITDA grew 40% to AED 8 Bn, and net profit attributable to equity holders rose 23% to AED 5.3 Bn.

• Gross profit for the six-month period increased to AED 8.38 billion from AED 6.77 billion year-over-year.

• Gross profit margin improved to 58% from 55% in H1 2023; EBITDA margin at 55%.

• Cash and cash equivalents at period end were AED 34.91 billion, up from AED 25.62 billion at the start of the year.

• Revenue backlog from property sales stands at AED 90.1 Bn, supporting future revenue visibility.

Outlook and guidance

• Focus remains on maintaining market leadership, execution, cash flow generation, and maximizing shareholder returns.

• Strategic land acquisitions and new project launches in UAE and international markets to drive future growth.

• Continued expansion of recurring revenue streams, including retail and hospitality, with major investments in Dubai Mall and new hotel openings.

• Management notes that results for the period are not necessarily indicative of full-year performance due to the nature of the business and market conditions.

• The company continues to monitor global inflation, interest rates, and geopolitical events for potential impacts on property valuations.