Sixth of October Development & Investment Company “SODIC” releases its consolidated financial results for the six months ended June 30th, Invest-Gate reports.00
SODIC reveals selling 1,018 units during H1 2022, generating gross contracted sales of EGP 6.67 bn, an increase of 77% over EGP 3.76 bn of gross contracted sales recorded in H1 2021 and an achievement of 48% of the company’s 2022 gross contracted sales target of EGP 14 bn, with the company targeting a growth of 23% over FY2021 sales.
Gross contracted sales during the period are diversified between SODIC’s main markets, with West Cairo accounting for 29% of sales mainly driven by the newest project, The Estates Residences.
East Cairo contributes 35% of the period’s gross contracted sales on the back of strong absorption of newly released inventory on Villette, while continued strong performance of June leads to the North Coast accounting for 36% of sales during the period.
Additionally, cancellations of EGP 682 mn are recorded during H1 2022, representing 10% of the period’s gross contracted sales vs. 9% during H1 2021.
Cancellations are negatively affected by cancellations of EGP 501 mn on 500 acres project due to its temporary suspension, as the project accounting for 76% of the cancellations during the period. Excluding cancellations on the 500 acres project, cancellations will stand at 2% of gross contracted sales.
Net cash collections reach EGP 2.96 bn for H1 2022, with delinquencies at 8.2% compared to collections of EGP 2.47 bn and a delinquency rate of 9.8% recorded during H1 2021.
Moreover, SODIC delivers some 464 units in H1 2022, of which 355 are in East Cairo projects, while West Cairo and North Coast projects account for 99 and 10 of the delivered units respectively, compared to 264 units delivered in H1 2021.
Deliveries on 655-acre flagship East Cairo project SODIC East start during the year, with the company delivering 135 units as of June 30th, 2022. Also, CAPEX spent on construction during H1 2022 amounts to EGP 1.29 bn compared to EGP 1.48 bn spent during H1 2021.
SODIC’s financial statement reveals that the company generates EGP 2.73 bn in revenues during H1 2022, representing a 46% increase compared to EGP 1.87 bn in H1 2021.
Revenues are mainly driven by deliveries in East Cairo projects which account for 75% of deliveries by value, led by Villette’s Sky Condos and SODIC East, which respectively contribute 28% and 26% of the delivered value, respectively. Furthermore, West Cairo and North Coast projects contribute 23% and 2% of the delivered value during H1 2022.
Gross profit increases 44% YoY on the back of higher revenues to record EGP 652 mn, implying a gross profit margin of 34% versus EGP 652 mn and a gross profit margin of 35% recorded during H1 2021.
As for operating profit for H1 2022, it amounts to EGP 387 mn, reflecting an operating profit margin of 14%. This represents a 33% growth vs. an operating profit of EGP 292 mn and an operating profit margin of 16% in H1 2021.
Likewise, net profit after tax and non-controlling interests comes in at EGP 292 mn, growing 31% from the EGP 223 mn during H1 2021. Net profit margin decreases slightly from 12% in H1 2021, to reach 11% in H1 2022, affected by the large volume of early phase deliveries in SODIC East during Q2 2022.