Sixth of October Development & Investment Company “SODIC” releases its consolidated financial results for the period ending September 30, 2021, Invest-Gate reports.
SODIC has sold 817 units during 9m 2021, generating gross contracted sales of EGP 5.39 bn, with an increase of 32% over EGP 4.1 bn of gross contracted sales during the same period in 2020.
West Cairo accounts for 51% of gross contracted sales during 9m 2021, driven by the continued strong performance of the company’s signature project “The Estates”, which contributes 23% of the period’s gross contracted sales.
Additionally, East Cairo projects contribute 49% of the period’s gross contracted sales, on the back of the sharp increase in sales on SODIC East which accounts for 25% of gross contracted sales during the period.
According to SODIC’s financial statement, it records EGP 869 mn of cancellations during 9m 2021, representing 16% of the period’s gross contracted sales. This compares to a cancellation rate of 20% during the same period in 2020.
The increase in cancellations is mainly attributable to cancellations on the 500-acre project due to the temporary suspension of the project, with the project accounting for EGP 478 mn of cancellations during the period.
Furthermore, net cash collections reach EGP 3.64 bn for 9m 2021, with delinquencies at 9%. This compares to collections of EGP 3.1 bn and a delinquency rate of 9% recorded during the same period in 2020.
SODIC has delivered some 570 units during the period, of which 225 were in West Cairo projects, while East Cairo and North Coast projects account for 328 and 17 of the delivered units, respectively.This compares to 786 units delivered during 9m of the previous year.
While the number of delivered units declines slightly in 2021 compared to 2020, the average value of delivered units increases some 31% YoY to reach EGP 5 mn .
SODIC’s financial statement reveals that the company records EGP 3.31 bn of revenues during 9m 2021, representing a 8% decline compared to EGP 3.58 bn in the same period last year. This comes as a result of the lower deliveries with the majority of 2021 unit handovers being scheduled for the Q4 .
Moreover, gross profit logs EGP 1.05 bn, implying a gross profit margin of 32% in the first nine months 2021 vs. EGP 1.16 bn and a gross profit margin of 32% recorded during the same period in 2020.
With the strong performance of the company’s long awaited North Coast project “June” launched in October 2021, SODIC is on track to surpass sales guidance. Deliveries remain as scheduled to close the year with the forecasted growth in deliveries and consequently revenues, meeting disclosed guidance despite some delays on planned CAPEX on some of the projects.
