SODIC achieves EGP 2.8bln of sales driven by strong demand for projects in both West and East Cairo despite limited new launches

SODIC achieves EGP 2.8bln of sales driven by strong demand for projects in both West and East Cairo despite limited new launches

Sixth of October Development & Investment Company “SODIC” has released its consolidated operational and financial results for the three months ended 31st of March 2023.

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- Gross contracted sales: EGP 2.78 billion;

- Cancellations: 21% of gross contracted sales;

- Cash collections: EGP 2.10 billion;

- Timely delivery of 208 units;

- Revenues: EGP 1.50 billion, up 26% YoY;

- Gross profit: EGP 563 million, up 12% YoY, and reflecting a gross profit margin of 38%;

- Operating profit: EGP 165 million, down 38% YoY, implying an operating profit margin of 11%;

- Net profit after tax and non-controlling interests: EGP 187 million, down 17% YoY, delivering a net profit margin of 13%

Operational Review

SODIC sold 274 units during the first quarter of 2023, generating gross contracted sales of EGP 2.78 billion. This compares to sales of EGP 3.74 billion recorded during the first quarter of 2022. The YoY drop in sales is mainly attributable to the limited launches in 2023 compared to 2022, as the company had temporarily halted sales during the beginning of 2023 to revisit sales prices amid increasing construction costs. Going forward SODIC will periodically review its selling prices as it seeks to balance maximizing sales with managing cost inflation risk in the current inflationary