Moroccan developer Addoha posts $55M profit on strategy shift

Douja Promotion Groupe Addoha, the Moroccan real estate developer founded by Anas Sefrioui, reported a sharp rise in profitability in 2025, with consolidated net income climbing 70% year-on-year to MAD516 million ($55.13 million), signaling a turnaround in financial performance and operational efficiency.

The strong earnings growth reflects improved execution across key projects and a shift toward a more disciplined, value-driven development strategy, as the group enters what it describes as a more selective phase focused on sustainable profitability.

Earnings surge despite modest revenue growth
Addoha’s revenue rose 4% to MAD2.7 billion ($288.45 million), supported by the completion of multiple housing phases across Morocco, Ivory Coast, and Guinea. However, the company noted that under the previous accounting framework, revenue would have reached MAD3.5 billion ($373.91 million), representing a 36% increase, highlighting the impact of new real estate accounting rules introduced in January 2025.

The revised standards, which alter how developers recognize sales, have reshaped reported revenue without affecting underlying business momentum, the group said.

Balance sheet remains resilient
Net debt remained broadly stable at MAD4.39 billion ($468.99 million), even as Addoha accelerated construction activity, increasing funding requirements. The group maintained a gearing ratio of 30%, underscoring disciplined debt management and a balanced risk profile despite expanding operations.

Consolidated equity stood at MAD10.4 billion ($1.11 billion) at the end of December 2025, reflecting continued strengthening of the company’s financial base and long-term stability.

Positioned for sustainable growth
ADH has been at the heart of Morocco’s housing expansion for more than three decades. The company built tens of thousands of affordable homes in cities including Casablanca, Ain Aouda, El Jadida, and Tetouan, supporting government efforts to reduce the housing deficit and expand urban infrastructure. Sefrioui, who founded ADH in 1988, owns over 60% of the company, making him one of Morocco’s leading business figures.

Addoha’s improved profitability and stable balance sheet highlight a company transitioning from volume-driven expansion to value-focused growth. By tightening project selection and enhancing operational efficiency, the developer is positioning itself to deliver more consistent returns across its African footprint.

The results underscore a broader recovery in North and West African real estate markets, where developers are increasingly prioritizing financial discipline, capital efficiency, and resilient project pipelines amid evolving regulatory and market conditions.