The Deets TMG increased its profits during H1 2022 by 27% to reach EGP 1.09 billion, up from EGP 857 million in H1 2021.
TMG also increased its revenues from EGP 5.49 billion in H1 2021 to EGP 7.09 billion in H1 2022, a 29% increase.
Despite the increases in revenue and profit, contract sales decreased by 46% in H1 2022, recorded at EGP 11.3 billion. Contract sales are sales on paper that have not yet been delivered.
Reason The company explained the decrease in sales due to recording higher sales in the prior year for the Noor Project. Naturally, sales slowed down in the first half of 2022.
How are sales higher than revenues? In real estate companies, sales are recorded when the contract is signed, whereas revenues are recorded once units are delivered or the completion of a certain percentage of the project.
For that reason, revenues are percentages of sales in previous periods.