SODIC sales rise 54% in the second quarter of 2022

Revenues of the Sixth of October Development and Investment Company (SODIC) jumped 51% on an annual basis in the second quarter of this year to reach 1.54 billion pounds, mainly driven by the increase in deliveries in the company's projects in the East Cairo region, according to the company's profit statement (PDF). . The company's net profit declined 47% year-over-year during the quarter due to deliveries of the first phases of the SODIC East project, which represented 39% of the value of deliveries during the quarter. "The early stages of new projects generally have lower profit margins, and these margins gradually improve with the progress in implementing new stages of projects," Soik said. SODIC's net profit increased by 31% on an annual basis during the first half of 2022 to reach EGP 292 million, supported by a 46% year-on-year revenue growth.

Total contracted sales increased by 54% during the second quarter to reach EGP 2.94 billion, representing the proceeds of selling 445 units during the period. The "June" project in the North Coast contributed the lion's share (about 43%) to the total contracted sales during the quarter. East Cairo projects contributed 36% of the quarter's sales, supported by the strong performance of SODIC East, while West Cairo projects captured the rest.

East Cairo projects topped deliveries during the quarter, according to the statement. SODIC has delivered about 299 units, distributed in 239 units in East Cairo, 57 units in West Cairo, and 3 units in the North Coast.

For real estate development companies Sales ≠ Revenue earned. Companies record the sale process when signing the contract to buy the house, but some or all of the value of the sold unit is recorded either upon delivery of the unit or when the project completion rate reaches a specified percentage.