Dar Global (DAR) H1 2024 earnings summary

Executive summary

• Portfolio GDV increased to USD 6.8bn across 14 active projects as of 30 June 2024, up USD 1.8bn year-over-year.

• 1,797 units sold, generating USD 1.3bn in contracted sales value, up from USD 0.8bn in H1 2023.

• Several new partnerships and launches, including Trump International Hotel Oman, The Astera with Aston Martin, and Dolce & Gabbana resort in Maldives.

• Completion and ongoing handover of Urban Oasis, the first project to be completed.

• Steady H1 performance with significant growth in overall asset portfolio, though revenue and profitability were subdued due to timing of revenue recognition.

Financial highlights

• Revenue recognized at USD 44.5m for H1 2024, down 59% year-over-year (H1 2023: USD 108.4m), with 100% generated from UAE operations.

• Gross profit margin at 33% (H1 2023: 42%), gross profit USD 14.6m.

• Loss for the period reported at USD 12.8m (H1 2023: profit of USD 20.8m); EPS: -USD 0.07.

• Cash position of USD 335.5m (free cash USD 126.9m, restricted USD 208.6m) and total liquidity of USD 170.4m as of 30 June 2024.

• NAV stands at USD 452m (Dec 2023: USD 465.4m); NAV per share: USD 2.5.

Outlook and guidance

• On track to achieve revenue guidance of USD 700m across FY24 and FY25.

• Expected revenue for FY24 is USD 210m–250m, with a larger portion in FY25 as more projects reach construction milestones.

• EBITDA margin expected to remain similar to FY 2023 as new projects reach revenue milestones.

• Positive impact on revenue and profitability anticipated in H2 2024 and FY 2025 as construction milestones are met.

• Strong balance sheet and liquidity position support opportunistic growth.