Sixth of October Development & Investment Company (SODIC) has reported an 87% year-on-year increase in net profit, a 35% rise in revenues and a 34% increase in gross sales for H1 of 2024, Invest-Gate reports.
The company’s consolidated financial results, covering the six months ending June 30, 2024, reflect robust performance and strategic advancements.
In collaboration with Nobu, SODIC announced the signing of Nobu Hotel and Restaurant East Cairo, marking their third venture in Egypt following West Cairo and North Coast Egypt projects. Additionally, SODIC signed an agreement with Marriott International to introduce the Tribute Portfolio brand to its hotels in West Cairo and the North Coast.
The upcoming Eastown District New Cairo (EDNC) grand opening in September 2024 is another highlight of SODIC’s expansion efforts.
Moreover, in the first six months, SODIC sold 361 units, generating EGP 10.93 bn in gross contracted sales, up 34% from EGP 8.17 bn in H1 2023. Cancellations amounted to EGP 253 mn, a mere 2% of the year’s gross contracted sales, significantly lower than the 10% cancellation rate in H1 2023. Net cash collections reached EGP 6 bn, with delinquencies at 6%, compared to EGP 4 bn in collections and a 5% delinquency rate in the previous year.
Furthermore, SODIC delivered 478 units in H1 2024, with 324 units in East Cairo and 154 in West Cairo, compared to 402 units in the same period last year. The company’s CAPEX on construction reached EGP 3 bn, up from EGP 2 bn in H1 2023.
Also, revenues totalled EGP 3.94 bn, driven by deliveries in West Cairo, which accounted for 51% of SODIC’s deliveries by value. Ayman Amer, SODIC’s General Manager, expressed satisfaction with the results, highlighting its commitment to profitable sales, sustainable growth, and expanding its hospitality offerings through partnerships with Nobu and Marriott International.
“The robust demand for our projects, reflected in our launches and the significant drop in cancellations, underscores the strength of our brand and the resilience of the Egyptian market,” Amer said.
