Since 2017, TMG has achieved remarkable sales growth, marked
by an unprecedented 70% compound annual growth rate (CAGR) in value. This
strong trajectory reached its peak in 2024 with record sales exceeding EGP 504
billion, equivalent to around $10 billion US dollars.
The Group reported a 25% sales growth in the first quarter
of 2025, reaching 77 billion Egyptian pounds, compared to 62 billion Egyptian
pounds in the same period of 2024. Notably, this growth occurred despite the
absence of new real estate project launches this year. Looking ahead, TMG
Holding aims to maintain its total sales for fiscal year 2025 at a level
comparable to its record-breaking 2024 performance, driven by the anticipated
launch of new projects, including the Sharm El Sheikh Bay multi-use development
in Sharm El Sheikh city, by year-end.
TMG had launched the second phase of its mega project in
SouthMED in early May 2025. This followed its initial offering in 2024, which
saw even greater demand, with over 70 billion Egyptian pounds booked on the
first day. Consequently, total sales since the beginning of the year have
reached over 160 billion Egyptian pounds, representing a 125% growth rate.
Regarding the target for expansion in the Group's hotel
sector and other recurring income sources, TMG successfully acquired seven
prominent historical hotels in Egypt, adding over 2,500 hotel rooms to its
portfolio. This acquisition bolsters a stable flow of foreign currency. Recurring
income activities continued to grow in Q1 2025, with hotel revenues increasing
by 50% to reach EGP 3.5 billion (up from EGP 2.3 billion in Q1 2024). Consequently,
the total income from hotel activities and recurring activities reached 5.6
billion Egyptian pounds during the current quarter, achieving a strong growth
rate of 70%. Notably, these revenues now represent nearly 60% of total
consolidated revenues, compared to approximately 49% in the same period last
year.
The Group's asset monetization strategy has successfully
strengthened its liquidity and financial stability, enabling reinvestment in
high-growth opportunities. This is reflected in a cash balance of EGP 58
billion as of March 31, 2025. Furthermore, total foreign currency resources
reached USD 605 million at the end of Q1 2025, representing nearly one-third of
the Group's current market capitalization and providing a significant hedge
against currency risks.
In the first quarter of 2025, TMG continued its robust
regional expansion strategy for its land portfolio. This included announcing
advanced negotiations for a significant 14 million square meter multi-use
project in Iraq. This development follows TMG's successful 2024
expansion, marked by its entry into the Saudi market with the 10 million square
meter Banan project and the 23 million square meter SouthMED project on the
North Coast. The Group is also exploring further expansion opportunities within
the Gulf Cooperation Council countries (GCC) and the Middle East and North
Africa (MENA) regions to boost profitability and generate hard currency cash
flows.
Following the significant success of the SouthMED project
and the opening of new destinations like the recently inaugurated massive Ras
El Hekma project, the Group is also preparing for new growth opportunities on
the North Coast.
To maintain and protect the high value of its capital by
diversifying foreign currency income sources, the Group has successfully
developed unique real estate assets, notably its hospitality sector investments
and its expansion in Saudi Arabia through the Banan project. This strategy has
generated significant foreign currency income, with the hospitality sector
alone contributing $69 million in the first quarter of 2025, approximately 37%
of the Group's total revenues. Additionally, the Banan project in Saudi Arabia
has secured over 6.2 billion Saudi Riyals in reserved sales, which will be
recognized as revenue over the next four years.
This strategic approach secures TMG from foreign
currency risks in Egypt. This bolsters the Group's business model, known for
its flexibility, low risk profile, and resilience to market challenges,
ultimately aiming for strong investor returns.
Moreover, TMG's real estate developments leverage modern and
innovative technologies, increasingly incorporating artificial intelligence in
commercial and operational processes. This leads to significant energy and
water savings and enhances labor efficiency.
Distinguished partnerships and unique acquisitions
successfully executed in 2024 and beyond have rightfully positioned the group
as a leading exporter of an effective business model in the real estate and
tourism sectors. This transformation has generated significant foreign currency
income, effectively hedging the Group's projects against exchange rate
volatility.
Notably, these assets not only preserve but also appreciate
in value, offering a natural cash flow during economic volatility. This performance
highlights the Group's strength and resilience, positioning it for robust
growth in both Egyptian and global markets, ultimately boosting shareholder
returns.
Consistently surpassing its strategic objectives and initial
expectations, TMG has secured sustainable financial growth and stability
for the future. This success stems from its flexible and low-risk business
model, specifically designed to deliver strong investor returns.