Business

Damac posts Dh190 million net loss in first quarter

Damac posts Dh190 million net loss in first quarter

Dubai: Damac Properties posted net losses of Dh190 million in the first quarter of 2021 compared to Dh106 million last year.

The company reported revenue of Dh642 million, booked sales of Dh1.1 billion and deliveries of about1,350 units in Dubai.

Losses were mainly due to lower revenue recognition as many projects are nearing completion, compressed gross margins due to revenue-mix and higher selling and general administration expenses resulting from higher booked sales reported during the quarter, the company said in a statement.

As of 31 March 2021, Shareholders’ equity stood at Dh12.9 billion whereas Total assets were reported at Dh21.7 billion.

The company also reported a gross debt of Dh3.5 billion as at 31 Mar 2021.

“The market is slowly recovering from the effects of the Covid-19 pandemic and its impact on various industries, particularly travel and tourism. I still strongly believe that recovery will take at least 12-24 months,” said DAMAC Chairman Hussain Sajwani.

"With the UAE government’s excellent handling of the pandemic and EXPO 2020 coming up, these are all positive indicators which make me cautiously optimistic. However, we must remain patient and guarded going forward as the global economy is still reeling from the effects of the pandemic and will take time until markets fully rebound.”