(Ecofin Agency) - Moroccan real estate group Douja Prom Addoha indicates projected revenue estimated at MAD900 million (XOF54.4 billion) in West Africa in the next two years. This amount represents the pre-sales of 1,700 houses made in 2018.
"In view of the success of the first sales, the group accelerated the rate of its investments in most of the countries where it is present. At end 2018, the land reserve was more than 100 Ha, up by 40%. 50 ha of this land reserve is located in strategic towns in Abidjan," the group explains in its financial disclosure.
At end 2018, the group’s pre-sales in West Africa accounted for its total pre-sales, the majority of these sales being made in Côte d'Ivoire, Senegal and Guinea Conakry. Addoha wants to expand its activities in Subsaharan Africa which it believes is a growth driver. However, it still has to complete its debt-reduction strategy. In that regard, it has decided to consolidate its resources with its 2018 net profit to be able to easily carry out its expansion strategy.
On the Casablanca Stock Exchange, investors seem not so much moved by these expansion prospects. The group’s share lost 7.5% with a volume of exchanges that reached MAD6.4 million.
The market rather seems disappointed with the 2018 net profit that was MAD376.5 million, down 50% compared with the performance in 2017 (despite a 29.3% decrease in net profit recorded in 2017).
Let’s note that since 2014, the real estate group has not really created any added-value for its investors. According to figures available on the Casablanca stock exchange, its shares lost 80.4% since that year.