Sixth of October Development & Investment Company (SODIC) announced strong growth in sales and profits for the first nine months of 2023, driven by robust demand, Invest-Gate reports.

SODIC sold 1,396 units from January to September, generating EGP 19.8 bn in gross contracted sales. This marks a 67% increase compared to EGP 11.8 bn in the same period last year.

Sales were strong across SODIC’s projects. East Cairo accounted for 28% of sales, led by the Villette and SODIC East projects. West Cairo made up 52%, driven by a relaunched 464-feddan project. Meanwhile, the North Coast generated 20% due to continued demand for SODIC’s secondary homes.

Cancellations were 5% of gross sales at ُEGP 995 mn, down from 8% last year. Net cash collections rose 56% to EGP 7.2 bn, while delinquencies fell to 3.23% from 6.9%.

SODIC delivered 743 units, concentrated in East Cairo. The company noted its 2023 delivery schedule is weighted towards Q4 based on project timelines.

Revenues grew 7% to EGP 4.97 bn. Gross profit jumped 21% to EGP 1.78 bn, with a 36% margin versus 32% last year. Operating profit climbed 15% to EGP 696 mn, with a 14% margin. Net profit after taxes rose 26% to EGP 548 mn, and the margin expanded to 11%.

SODIC maintains a strong liquidity position, with EGP 3.37 bn in cash and cash equivalents. Bank debt is low at EGP 3.34 bn. Total receivables are nearly EGP 40 bn, providing revenue visibility.

In July, SODIC announced a new 440-feddan North Coast project expected to generate EGP 80 bn in sales. In August, it partnered with Nobu Hospitality for two hotels, residences and restaurants in SODIC projects.