Sixth of October Development & Investment Company (SODIC) has revealed its consolidated financial results for the first quarter (Q1) of 2022.
Gross contracted sales for the first quarter of the year grew 102% YoY, carrying over the strong momentum of Q4 2021, and recorded EGP 3.74bn, representing 573 units sold across all projects, to set a new record for contracted sales during any first quarter in terms of both number and value of units sold.
West Cairo projects accounted for 36% of gross contracted sales during the quarter, supported by the successful launch of the newest West Cairo project, The Estates Residences, which was launched in Q1 2022 on the plot that was acquired in Q3 2021. The Estates Residences serves as an extension to The Estates, SODIC’s upscale signature community in New Zayed. East Cairo projects accounted for a further 34% while the north coast accounted for 30% of gross contracted sales during the quarter, continuing the strong sales momentum of “June” since its successful launch in the fourth quarter of 2021.
Cancellations of EGP 388m were recorded during Q1 2022, representing 10% of the quarter’s gross contracted sales. This compares to a cancellation rate of 8% recorded during the first quarter of 2021. Cancellations were negatively affected by cancellations of EGP 299m on the 500 feddan project due to its temporary suspension, with the project accounting for 80% of the cancellations during the quarter. Excluding cancellations on the 500 acres project, cancellations would stand at 2% of gross contracted sales.
SODIC delivered some 165 units in Q1 2022, of which 42 were in West Cairo projects, while East Cairo and North Coast projects accounted for 116 and 7 of the delivered units, respectively. This compares to 120 units delivered across all projects during Q1 2021.
During the quarter, SODIC delivered ten units in SODIC East, the flagship project in East Cairo, marking the first deliveries on what is set to be a full-fledged world-class mixed-use destination on the East side of Cairo. CAPEX spent on construction during the quarter amounted to EGP 634 million, compared to EGP 776m spent during Q1 2021.
Revenues of EGP 1.19bn were recorded during the quarter, an increase of 40% over EGP 849m recorded during the first quarter of 2021. Revenues were mainly driven by deliveries in East Cairo projects which accounted for 67% of deliveries by value, led by commercial project EDNC and Villette’s Sky Condos, which accounted for 29% and 22% of the delivered value, respectively. Furthermore, West Cairo and North Coast projects contributed 30% and 3% of the delivered value during the quarter.
Gross profit increased 78% YoY to reach EGP 503m, implying a gross profit margin of 42%. This compares to a gross profit of EGP 282m and a gross profit margin of 33% recorded during the first quarter of last year. Gross profit margin expanded 900 bps YoY, supported by a better delivery mix, with high margin EDNC leading the quarter in terms of delivered value.
Operating profit grew 107% YoY from EGP 129m recorded in 1Q 2021 to reach EGP 267m during the first quarter of 2022. Supported by higher revenues and gross profit, operating profit margin improved 700 bps YoY and came in at 22% during 1Q 2022 compared to 15% during the same quarter in 2021.
Net profit after tax and non-controlling interests came in at EGP 226m, growing 125% YoY from EGP 100 million recorded during 1Q 2021. Net profit margin improved 700 bps to 19% during the quarter, on the back of the improvement in operating profitability.
