SODIC reports highest ever sales in a single quarter recording EGP 31 Bn in gross contracted sales in Q3 2024

Newly launched “Ogami” met with exceptional demand further anchoring SODIC in Egypt’s North Coast market
Cairo, Egypt, 29 October 2024, Sixth of October Development & Investment Company “SODIC” has released its consolidated financial results for the nine months ended 30th of September 2024.

Operational & Financial Highlights
Gross contracted sales EGP 39.8 billion, up 101% YoY
Cancellations 1.2% of gross contracted sales
Net Cash collections EGP 11 billion
Timely delivery of 755 units
Revenues EGP 6.28 billion, up 26% YoY
Gross profit: EGP 2.37 billion, up 33% YoY, reflecting a gross profit margin of 38%
Operating profit: EGP 1.22 billion, up 75% YoY, implying an operating profit margin of 19%
Net profit after tax and non-controlling interests EGP 935 million, up 71% YoY, delivering a net profit margin of 15%

Operational Overview

SODIC sold 947 units during the first nine months, generating gross contracted sales of EGP 39.77 billion, an increase of 101%, more than double last year’s recorded EGP 19.78 billion in gross contracted sales during the same period.

Gross contracted sales during the period were heavily driven by North Coast sales, accounting for 72% of total sales, led by the strong demand for the newly launched project Ogami which contributed EGP 21.3 bn in contracted sales, representing 54% of SODIC’s contracted sales in 9M 2024. West Cairo projects contributed 24% of the company’s gross contracted sales on the back of robust sales in The Estates & Estates Residences, which contributed 11% of sales.

Cancellations of EGP 464 million were recorded during the period, representing 1.2% of the year’s gross contracted sales, an all-time low in cancellations, a testament to the strong demand for SODIC projects. This compares to a cancellation rate of 5% during 9M 2023.

Net cash collections reached EGP 11 billion for 9M period, with delinquencies at 3.7%. This compares to collections of EGP 7 billion and a delinquency rate of 3.2% recorded during the same period last year.

SODIC delivered some 755 units during the first nine months of the year, of which 509 were in East Cairo projects, while West Cairo accounted for 246 of the units delivered. This compares to 743 units delivered during the previous year’s first nine months.

CAPEX spent on construction during the period amounted to EGP 5.3 billion, compared to EGP 3.2 billion spent during the first nine months of 2023.

Financial overview:

Income Statement
Revenues of EGP 6.28 billion were recorded during the period, representing a 26% increase compared to EGP 4.97 billion of revenues recorded during the same period last year. Revenues were driven by deliveries in West Cairo projects which accounted for 54% of SODIC’s deliveries by value. West Cairo’s projects SODIC West and The Estates accounted for 27% and 23% of the value delivered during these nine months respectively, together representing 50% of the total value of deliveries. East Cairo contributed 46% of the delivered value.
Gross profit came in at EGP 2.37 billion, implying a gross profit margin of 38%, gross profits recorded a 33% growth YoY.
Operating profit of EGP 1.22 billion was recorded during the nine months, reflecting an operating profit margin of 19%, growing by 75% YoY.
Net profit after tax and non-controlling interest came in at EGP 935 million, implying a net profit margin of 15% and EPS of EGP 2.62.
Balance Sheet
SODIC continues to maintain a strong liquidity position with total cash and cash equivalents amounting to EGP 3.85 billion.
Bank leverage remains low, with bank debt to equity standing at 0.31x. Bank debt outstanding amounted to EGP 3 billion as of 30 September 2024. Debt to equity amounted to 0.37x at year-end 2023, with EGP 3.22 billion of outstanding debt.
Total receivables stood at EGP 58 billion, of which EGP 13 billion are short-term receivables providing strong cash flow visibility for the company. A total of EGP 7.7 billion of receivables are reported on the balance sheet, reflecting only the receivables related to delivered units already recognized as revenue. On the other hand, some EGP 50 billion of receivables related to undelivered units are disclosed in the footnotes.
SODIC’s total backlog of unrecognized revenue stood at EGP 82 billion as of 30 September 2024, providing strong revenue visibility for the company.
Key Corporate Highlights
 April 24th: SODIC, and Nobu, the renowned luxury lifestyle brand announced the signing of Nobu Hotel and Restaurant East Cairo. The signing marked Nobu and SODIC’s third venture in Egypt, following the announcement of Nobu Hotel, Restaurant, and Residences in both West Cairo and North Coast Egypt in August 2023.
 June 11th: SODIC signed an agreement with Marriott International, Inc. to bring the Tribute Portfolio brand to two of the leading developer’s hotels in West Cairo and the North Coast.
 September 2nd: SODIC announced the launch of its newest coastal project, Ogami, located on Egypt’s North Coast and home to the exclusive Nobu Hotel and Residences enclave in the region.
 September 27th: SODIC celebrated the grand opening its newest retail destination, Eastown District New Cairo “EDNC”, inaugurating its flagship retail destination in New Cairo.
Commenting on the results Ayman Amer SODIC’s General Manager said, “We are proud to announce record-breaking gross contracted sales of EGP 39.8 billion, representing a remarkable growth of 101% YoY, driven by the robust demand for our newest North Coast development “Ogami”, which was met with record breaking success. Our strong performance across all financial metrics is a testament to the strength of our brand and the confidence our customers have in our ability to consistently create value for them. We are proud to have made strong strides in our hospitality and retail platforms in 2024, further strengthening our customer experience which continues to set SODIC apart”..