The Clap
Orascom Development (ORHD) more than doubled its net profits in 2021, reaching EGP 1.3 billion, compared to 571.3 million pounds in 2020. It’s net profit margins also improved from around 11.4% in 2020 to 18.3% in 2021.
Claps Class
Net profit margins measure how much net income is generated as a percentage of revenues received.
The deets
The big increase can be clearly attributed to the recovery in the tourism industry after it was hard hit in 2020 by the pandemic.
But
There’s rising uncertainty as a result of the Russia-Ukraine crisis, which ORHD said it’s closely monitoring market developments, & hasn’t yet concluded a final assessment of the impact of the situation. The company added that there haven’t been any indicators of a major disruption in the group’s business performance, due to Russian & Ukrainian tourists representing about 3% of the group’s hotel occupancy in 2021.
Taking matters into their own hands
In addition, the company is working to diversify tourists coming to its resorts in all destinations. In fact, the entire Ministry of Tourism is pushing to lure new tourists from “Western Europe, including Britain, Germany, Spain, France & Italy, as well as Hungary & Gulf Arab countries”, after Russia & Ukraine, our two biggest markets were hit.
