Sixth of October for Development & Investment Company (SODIC) reported a decline in its revenues to almost EGP 512 mn during the first quarter of 2018, including minority shareholders’ rights, versus EGP 703 mn logged during the same period last year, Invest-Gate reports.

However, the Egyptian developer affirms in an earnings release issued on Wednesday, May 16, that revenues during 2017 were exceptionally front loaded towards Q1-18 since SODIC delivered almost 35% of the units for the year.

Meanwhile, the developer has posted a net profit of EGP 212 mn, up 41% over the same period last year, while gross profit surged by 26% to reach EGP 266 mn, granting a solid gross profit margin of 52%.

“During the quarter we signed a 1.3 mn square meter revenue share deal bringing over EGP 15 bn of potential sales on the Mediterranean north coast and providing seven years of sales visibility in this highly active market,” SODIC’s Managing Director Magued Sherif says in a statement.

The statement also highlights the extraordinary high profitability of SODIC’s projects during the quarter with nearly all projects attaining a gross margin of over 40%.

“In addition SODIC was announced as the highest bidder on a 500 acre revenue share plot in west Cairo, pending final allocation of the plot. The addition of this plot would bring our land bank to 8 mn square meter putting over 10 years of inventory visibility in all our markets,” Sherif adds.