Sixth of October Development and Investment Company (SODIC) has released its consolidated financial results for the full year ended December 31st, 2021, Invest-Gate reports.

Gross contracted sales for the year came in at EGP 11.36 bn, a 54% growth YoY.

Despite the limited launches, West Cairo projects account for 30% of gross contracted sales during the year, supported by the continued strong demand for the signature project The Estates. East Cairo projects account for a further 33% of gross contracted sales during 2021, driven by the strong performance of SODIC East, which contributes 17% to the year’s gross contracted sales. Finally, The North Coast made up 37% of gross contracted sales during 2021, on the back of the successful launch of the North Coast project “June” which records EGP 4.14 bn in gross contracted sales.

Cancellations of EGP 1.97 bn were recorded during 2021, representing 17% of the year’s gross contracted sales. This compares to a cancellation rate of 14% recorded during 2020. The increase comes as a result of the amplified cancellations on the 500-acre project due to its temporary suspension.

Net cash collections reached EGP 4.95 billion for the year, with delinquencies at 6%. This compares to collections of EGP 4.28 bn and a delinquency rate of 8% recorded during 2020. SODIC delivers some 1,163 units during the year, of which 345 were in West Cairo projects, while East Cairo and North Coast projects account for 800 and 18 of the delivered units, respectively. SODIC also delivered 1,163 units during the previous year.

The company generated revenues of EGP 6.92 bn during 2021, a 24% growth from EGP 5.73 bn recorded during 2020. Revenues during the year were mainly driven by deliveries in East Cairo projects which contributed 75% of the year’s delivered value.

Gross profit increased by 31% YoY to EGP 2.34 bn in 2021, implying a gross profit margin of 34%. This compares to a gross profit of EGP 1.78 bn and a gross profit margin of 32% recorded last year.

The company’s operating profit grew 14% YoY to EGP 1.16 bn for the year, reflecting an operating profit margin of 17%, compared to EGP 1.02 bn of operating profit and an operating profit margin of 18% recorded in 2020, with the slight decrease in operating profit margin attributable to one-off recognition of sunk costs on Malaaz in the amount of EGP 17 mn before relaunching the project as June.

Net profit after tax and non-controlling interests came in at EGP 860 mn, growing 5% YoY and delivering a net profit margin of 12%, which compares to EGP 820 million and a net profit margin of 15% recorded during 2020.

Total cash and cash equivalents amounted to EGP 1.9 bn. This amount excludes some EGP 1.5 bn related to customer maintenance deposits, following the reclassification of some of the accounts on the balance sheet implemented as of year-end 2020.

SODIC has been gradually increasing leverage mainly to finance investment in recurring income assets. Debt to equity amounted to 0.37x at year-end 2020, with EGP 2.3 bn outstanding.

Investment Property & Investment Property under Development balance amounted to some EGP 3.52 bn on 31 December 2021.

Total receivables stood at EGP 19.5 bn, of which EGP 5 bn are short-term receivables providing strong cash flow visibility for the company. The new presentation of receivables reports a total of EGP 2.5 bn of on-balance sheet receivables, reflecting only those relating to delivered units already recognized as revenue. On the other hand, some EGP 17 bn of receivables related to undelivered units are disclosed in the footnotes.

The total backlog of unrecognized revenue stood at EGP 22.76 billion as of 31 December 2021.