SODIC sells 274 units in Q1 2023 generating gross contracted sales of EGP 2.78 bn, a decrease from EGP 3.74 bn in Q1 2022, Invest-Gate reports.

The decline in the company’s sales is ascribed to the limited launches and a temporary sales halt at the beginning of the year.

West Cairo projects account for 52% of sales, while East Cairo projects account for 48%. The company records cancellations of EGP 579 mn, representing 21% of gross contracted sales for the quarter, due to the company’s focus on canceling units in default.

Net cash collections reach EGP 2.03 bn, with delinquencies at 8.2%. During the quarter, SODIC delivers 208 units and spent EGP 861 mn on construction.

SODIC records revenues of EGP 1.50 bn in Q1 2023, an increase of 26% compared to the same period last year.

Revenue growth was driven by deliveries in West Cairo projects, accounting for 60% of deliveries by value, led by the commercial project Pavilion. East Cairo projects make up a further 39%, led by SODIC East.

SODIC’s gross profit increased by 12% year-on-year to reach EGP 563 mn, with a gross profit margin of 38%. However, the operating profit drops to EGP 165 mn, with an operating profit margin of 11%, compared to EGP 267 mn and an operating profit margin of 22% recorded in Q1 2022.

Furthermore,  SODIC’s net profit after tax and non-controlling interests amounted to EGP 187 mn, with a net profit margin of 13%, and earnings per share (EPS) of EGP 0.53, compared to EGP 226 mn, a net profit margin of 19%, and an EPS of EGP 0.64 during the first quarter of 2022.

Ayman Amer, SODIC’s General Manager, states that the company had witnessed healthy demand for the limited launches released during the quarter and will continue to bring forward releases across their projects during the year while monitoring the macro-operating environment and its impact on pricing strategies.