SODIC records EGP 19.8bln in gross contracted sales

Sixth of October Development & Investment Company “SODIC” has released its consolidated financial results for the nine months ended 30th of September 2023.

Operational & Financial Highlights

• Gross contracted sales EGP 19.8 billion, up 67% YoY


• Cancellations 5% of gross contracted sales


• Net Cash collections EGP 7.2 billion


• Timely delivery of 743 units


• Revenues EGP 4.97 billion, up 7% YoY


• Gross profit: EGP 1.78 billion, up 21% YoY, reflecting a gross profit margin of 36%


• Operating profit: EGP 696 million, up 15% YoY, implying an operating profit margin of 14%


• Net profit after tax and non-controlling interests EGP 548 million, up 26% YoY, delivering a net profit margin of 11%

Operational Review;

SODIC sold 1,396 units during the first nine months of 2023, generating gross contracted sales of EGP 19.8 billion, an increase of 67% over EGP 11.8 billion of gross contracted sales recorded during the first nine months of 2022.

Gross contracted sales were driven by strong sales on SODIC’s projects across all main markets. East Cairo projects accounted for 28% of gross contracted sales, on the back of continued demand for newly released inventory on Villette and launches on SODIC East, contributing 17% and 12% of the period’s gross contracted sales, respectively. On the other hand, West Cairo projects accounted for 52% of 9M 2023 gross contracted sales driven by the strong sales performance of SODIC’s relaunched 464-acre project, which contributed 25% of the period’s sales. Finally, North Coast June accounted for 20% of gross contracted sales fuelled by continued strong demand for SODIC’s secondary homes product.

Cancellations of EGP 995 million were recorded during the first nine months of 2023, representing 5% of the period’s gross contracted sales. This compares to a cancellation rate of 8% during the same period in 2022.

Net cash collections reached EGP 7.2 billion for the period, with delinquencies at 3.23%. This compares to collections of EGP 4.6 billion and a delinquency rate of 6.9% recorded during the same period of 2022.

SODIC delivered some 743 units during the period, of which 452 were in East Cairo projects, while West Cairo and North Coast projects accounted for 287 and 4 of the delivered units respectively. This compares to 843 units delivered during the first nine months of the previous year. It is worth noting that the company’s 2023 deliveries plan is heavily skewed towards the fourth quarter of the year compared to previous years based on scheduled project completions.

CAPEX spent on construction during the period amounted to EGP 3.2 billion, compared to EGP 2.0 billion spent during the same period last year.

Financial Review;

Income Statement

Revenues of EGP 4.97 billion were recorded during the first nine months of 2023, representing a 7% increase compared to EGP 4.65 billion of revenues recorded during the same period last year.

Revenues were mainly driven by deliveries in East Cairo projects which contributed 52% of the period’s delivered value, led by SODIC East and Villette’s Sky Condos, which respectively contributed 25% and 10% of the period’s delivered value. Furthermore, West Cairo projects accounted for a further 46% of the value delivered during 9M 2023 driven by deliveries on October Plaza, Allegria Residence, and Pavilion.

Gross profit increased 21% YoY on the back of deliveries of higher margin units to record EGP 1.78 billion, implying a gross profit margin of 36%. This compares to a gross profit of EGP 1.48 billion and a gross profit margin of 32% recorded during the first nine months of 2022.