SODIC revenues grow 84% to EGP 941 in 1Q19

According to the press statement, the strong growth in revenues was driven mainly by Villette which contributed to circa 50% of the delivered value.

Sixth of October Development & Investment Company (SODIC) recorded revenues of EGP 941m during the first quarter of 2019 (1Q2019) growing by 84% compared to EGP 512m recorded for the same period last year, the company announced on Sunday.
According to the press statement, the strong growth in revenues was driven mainly by Villette which contributed to circa 50% of the delivered value.
Furthermore, gross profit was recorded at EGP 270m, with a gross profit margin of 29%, this compares to EGP 266m recorded during the same period last year reflecting a margin of 52%.
While operating profits came in at EGP 149m versus EGP 193m during the same period last year and reflecting an operating profit margin of 16%.
Net profit amounted to EGP 161m during the quarter recording a net profit margin of 17%. This compares to EGP 211m recorded in 1Q18 reflecting a net profit margin of 41%
The statement cites that, total cash and cash equivalents amounted to EGP 4.3bn.
Bank leverage remains low with bank debt to equity at 0.35 folds. Since March 2019 SODIC's bank debts outstanding were EGP 1.8bn reflecting a 56% utilization rate for available bank facilities of EGP 3.2bn.
Receivables of EGP 11.4bn provide strong cash flow visibility, with delinquency rates at 7%, while client deposits as of the end of the quarter were EGP 16.5 billion providing strong revenue visibility for the company.
SODIC recorded EGP 881m of net contracted sales on the back of limited new launches. During the quarter SODIC launched the first phase of Allegria Residence, and the second phase of SODIC's office complex on road 90 in East Cairo Eastown District New Cairo "EDNC" with a total value of both launches was EGP 1bn.
Net cash collections came in at EGP 1.1bn during the first quarter 2019, while delinquencies were recorded at 7%.