Misr Hotels Company reports 4.45% decline in net profits despite revenue growth in FY 2024/2025

EGYPT – Misr Hotels Company posted a 4.45% year-on-year (YoY) decline in net profits after tax, recording EGP 1.389 billion (US$28.6 million) in the fiscal year (FY) 2024/2025, compared to EGP 1.454 billion (US$29.9 million) during the previous year.

This slight drop in profitability contrasts with a significant increase in revenues over the same period.

The company’s revenues surged 32.6% to EGP 1.906 billion (US$39.3 million) in FY 2024/2025, up from EGP 1.438 billion (US$29.6 million) in FY 2023/2024.

This notable growth reflects increased business activity and higher operational volumes amid improving market conditions in Egypt’s tourism and hospitality sector.

Earnings per share (EPS) showed a strong improvement, rising to EGP 2.62 (about US$0.054) for the 12-month period ending June 30, 2025, compared to EGP 1.56 (roughly US$0.032) a year earlier.

This increase in EPS indicates enhanced shareholder value despite the decline in net profits, likely influenced by changes in share capital or other capital structure adjustments.

The fiscal year witnessed optimistic revenue growth supported by recoveries in the hotel and tourism industries, progressively rebounding post-pandemic.

However, rising cost pressures and operational expenses appear to have limited the increase in net profits, resulting in the marginal decline reported.

In the first half (H1) of FY 2024/2025, Misr Hotels demonstrated strong momentum by achieving a 77.6% increase in net profits year-on-year, reaching EGP 763.9 million (about US$15.7 million), alongside revenue growth of 61.8% to EGP 935.2 million (approximately US$19.3 million).

The full-year results suggest slower profitability gains in the second half of the year.

Misr Hotels continues to benefit from its diversified property portfolio and strategic positioning within Egypt’s expanding hospitality market, serving both business and leisure travelers amid growing tourist inflows and rising domestic demand.

Looking forward, the company projects a more cautious outlook for FY 2025/2026, estimating net profits after tax around EGP 1.21 billion (US$25.0 million) and revenues near EGP 1.74 billion (approximately US$35.8 million).

These forecasts reflect management’s careful stance amid ongoing economic uncertainties.

Overall, Misr Hotels Company’s FY 2024/2025 results highlight strong revenue expansion but challenges in translating this growth into higher net profits.

The company continues navigating cost pressures while positioning itself to capitalize on Egypt’s evolving tourism landscape for sustainable growth.

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