Damac reports milestone year

DamacA villa at Damac’s Akoya Oxygen development l Image Credit: Courtesy of Damac

Damac has announced a 64 per cent growth in recognised revenue of more than $2 billion (Dh7.38 billion) for last year. The luxury residential property developer’s recognised revenue comprises development income attributed to the delivery of 3,553 units across eight projects and land sales at flagship developments Akoya by Damac and Akoya Oxygen, which generated $873.5 million, or 43 per cent of total revenues.

The company’s gross profit increased by 49 per cent from $788 million in 2013 to more than $1.17 billion last year, while net profit was up by 46 per cent from $641.5 million to $937 million. Gross margin remained at 58.5 per cent.

Damac’s total assets stood at more than $5.12 billion, representing growth of 68 per cent. The company said this was primarily because of an increase in cash and bank balances and development properties.

“Last year was a milestone year for Damac—as its first full year as a listed company and a period in which the company delivered a record financial performance,” said Hussain Sajwani, Executive Chairman and CEO of Damac.

“The strong increase in recognised revenues during the year highlights the successful delivery and sale of land and units across a number of projects, as well as the appeal of our diverse product base to customers around the world.”

Damac’s operating profit increased by 48 per cent to $939.3 million, while cash flow generated from operations grew to $882.4 million. The company said the latter was driven mainly by higher booked sales, which resulted in increased cash collection as advances from customers and greater profit.

Development properties stood at more than $2.32 billion — an increase of 20 per cent. The firm’s shareholder equity increased by 118 per cent to above $1.43 billion.

“Against the backdrop of economic growth and a stabilisation of real estate prices in Dubai, we believe that Damac will continue to benefit from customer demand for our products,” said Sajwani.

Source: Property Weekly


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