Cairo - Mubasher: Palm Hills Developments (PHD) is expected to raise prices by 30% to 40% in 2017, according to a recent report by Pharos Research.
“At the beginning of January 2017, PHD increased its prices by 15%, and stated that January 2017 sales have been the highest January sales ever in the company’s history,” the report indicated.
The management of Palm Hills Developments (PHD) said that in face of the current inflationary environment, it has extended its payment plans of five-six years to seven-eight years.
The company is also targeting clients abroad, whose purchasing power, given their foreign-denominated income, has risen following the floatation of the Egyptian Pound.
According to PHD management, around EGP 900 million of fiscal year 2016 gross sales that totalled EGP 8.2 billion came from clients abroad, which represents 11% of the year’s total gross sales.
PHD management stated that it is going ahead with its plan to insure its receivables. They hope to finalize the plan in Q1-17, as this will provide the company with insurance against any bad debt that may arise.
“According to PHD management, no dividends are expected to be paid out in 2017, since the cash will be primarily used in bulk purchases of steel and cables. However, the company expects to conduct a buyback later in 2017,” the report explained.
