Sixth of October for Development and Investment Company (SODIC) reported a 13% increase in first-quarter net profit to $6.1 million (EGP 187 million), compared to a net profit of EGP 226 million in the same period a year earlier, implying a net profit margin of 13% and earnings per share of EGP 0.53.
SODIC’s gross profit in the first three months of 2023 hit EGP 563 million, a 12% year-on-year (YoY) increase from EGP 492 million in Q1 2022, implying a gross profit margin of 38%.
The Egyptian developer’s revenues jumped 26% to EGP 1.50 billion in the quarter from EGP 1.20 billion in Q1 2022, driven by deliveries in West Cairo projects which accounted for 60% of deliveries by value.
SODIC continues to maintain a strong liquidity position with total cash and cash equivalents amounting to EGP 3.32 billion. The property firm’s total backlog of unrecognised revenue stood at EGP 34.4 billion as of March 31, 2023, providing strong revenue visibility for the company.
“We will continue bringing forward releases across our projects during the year as we closely monitor the macro-operating environment and its impact on our pricing strategies,” Ayman Amer, SODIC’s general manager said in a statement.
The company sold 274 units in the first quarter of the year, generating gross contracted sales of EGP 2.78 billion compared to EGP 3.74 billion registered in the same period in 2022. SODIC attributed the YoY drop in sales to the limited launches in 2023.
SODIC will periodically review its selling prices going forward as the company seeks to balance maximising sales with managing cost inflation risk in the current inflationary environment. CAPEX spent on construction during the quarter reached EGP 861 million, compared to EGP 634 million spent during Q1 2022.
Abu Dhabi’s Aldar Properties and ADQ acquired a controlling stake in SODIC in December 2021 for $388 million.
