Dubai-based developer Damac Properties’ revenues dropped almost 48% to ~AED 642.2 ($174.8mn) from AED 1.23bn ($334.9mn) while the gross profit was down ~55% to AED 139mn ($37.8mn) from AED 312mn ($84.9mn) last year. It reported a net Q1 loss of AED 189.6mn ($51.6mn), widening from AED 106.1mn ($28.9mn) last year due to a lack of demand on account of the pandemic. The loss comes despite an increase in booked sales. The booked sales of Damac stood at AED 1.1bn ($299.5mn) in Q1 against AED 733mn ($199.6mn) last year. The company reported adequate cash and cash equivalents of AED 1.88bn ($511.8mn). The company said, “The outbreak of novel coronavirus (Covid-19) pandemic in early 2020 has either directly or indirectly impacted all businesses,” and added, “As the Group is essentially engaged in property development, short term impact has been experienced however, management continues to have a reasonable expectation that the Group has adequate resources to continue as a going concern in foreseeable future.”
Damac’s Sales Halve, Losses Widen in Q1
Its subsidiary Alpha Star’s dollar 6.25% 2022s and 6.625% 2023s were down 0.12 and 0.19 to trade at 100.16 and 100.05 respectively on the secondary markets.
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