SODIC achieves record 1H revenues of EGP 2.73bn, up 46% y-o-y

The company achieved revenues of EGP 2.73bn, representing a 46% increase compared to 1H 2021's EGP 1.87bn.

The Sixth of October Development and Investment Company (SODIC) released on Wednesday its consolidated financial results for the first six months of 2022.
The company achieved revenues of EGP 2.73bn, representing a 46% increase compared to 1H 2021's EGP 1.87bn.
Revenues were mainly driven by deliveries in East Cairo projects, which contributed 75% of the period's delivered value, led by Villette's Sky Condos and SODIC East, which respectively contributed 28% and 26% of the period's delivered value.
Furthermore, West Cairo and North Coast projects contributed 23% and 2% of the delivered value during the six-month period, respectively.
Operating profits for the six-month period amounted to EGP 387m, reflecting an operating profit margin of 14%. This represents a 33% growth over an operating profit of EGP 292m and a margin of 16% recorded during the same period last year.
Moreover, net profits after tax and non-controlling interests came in at EGP 292m, growing 31% from the EGP 223m recorded during 1H 2021. Net profit margin, however, decreased slightly from 12% in 1H 2021 to reach 11% in 1H 2022, affected by the large volume of early phase deliveries in SODIC East during 2Q 2022.
Additionally, SODIC sold 1,018 units, generating gross contracted sales of EGP 6.67bn — an increase of 77% over EGP 3.76bn of gross contracted sales recorded during 1H 2021 and an achievement of 48% of the company's 2022 gross contracted sales target of EGP 14bn, with the company targeting a growth of 23% over FY2021's sales.
Gross contracted sales during the period were also diversified between SODIC's main markets, with West Cairo accounting for 29% of sales, mainly driven by the newest project — Estates Residences.
Meanwhile, East Cairo contributed 35% of the period's gross contracted sales on the back of strong absorption of newly released inventory on Villette. While the continued strong performance of June led to the North Coast accounting for 36% of sales during the period.
However, cancellations of EGP 682m were recorded, representing 10% of the period's gross contracted sales. This compares to a cancellation rate of 9% during the same period in 2021.
Moreover, cancellations were negatively affected by EGP 501m on a 500-acre project due to its temporary suspension, with the project accounting for 76% of the cancellations during the period.
Excluding cancellations on the 500-acre project, cancellations would stand at 2% of gross contracted sales.
Moving on, net cash collections reached EGP 2.96bn, with delinquencies at 8.2%. This compares to collections of EGP 2.47bn and a delinquency rate of 9.8% recorded during the same period in 2021.
Additionally, SODIC delivered some 464 units, 355 of which were in East Cairo projects, while West Cairo and North Coast projects accounted for 99 and 10 of the delivered units, respectively. This compares to 264 units delivered in 1H 2021.
Moreover, deliveries on the 655-acre flagship East Cairo project SODIC East started this year, with the company delivering 135 units as of 30 June.
CAPEX spent on construction during the period amounted to EGP 1.29bn, compared to EGP 1.48bn spent during the same period last year.