SODIC achieves record Q1 gross contracted sales of EGP 3.74bln and commences deliveries in SODIC East

Sixth of October Development & Investment Company “SODIC” has released its consolidated financial results for the three months ended 31st of March 2022.

First Quarter 2022 Operational & Financial Highlights

  • Gross contracted sales: EGP 3.74 billion, up 102% YoY
  • Cancellations 10% of gross contracted sales
  • Timely delivery of 165 units
  • Revenues EGP 1.19 billion, up 40% YoY
  • Gross profit EGP 503 million, up 78% YoY, recording a gross profit margin of 42%
  • Operating profit EGP 267 million, up 107% YoY, reflecting an operating profit margin of 22%
  • Net profit after tax and non-controlling interests EGP 226 million, up 125% YoY, delivering a net profit margin of 19%

Operational Review; A new Q1 record of EGP 3.74 billion of gross contracted sales

Gross contracted sales for the first quarter of the year grew 102% YoY, carrying over the strong momentum of Q4 2021, and recorded EGP 3.74 billion, 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 388 million 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 299 million on the 500 acres 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 776 million spent during Q1 2021.

Financial Review;

Income Statement

Revenues of EGP 1.19 billion were recorded during the quarter, an increase of 40% over EGP 849 million 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 503 million, implying a gross profit margin of 42%. This compares to a gross profit of EGP 282 million 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 129 million recorded in 1Q 2021 to reach EGP 267 million 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 226 million, 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.

Balance Sheet

SODIC continues to maintain a strong liquidity position with total cash and cash equivalents amounting to EGP 2 billion. Bank leverage remains low, with bank debt to equity standing at 0.36x. Bank debt outstanding amounted to EGP 2.53 billion as of 31 March 2022. SODIC has been gradually increasing leverage mainly to enhance returns and finance investment in recurring income assets. Debt to equity amounted to 0.38x at year-end 2021, with EGP 2.55 billion outstanding; and to 0.37x at year-end 2020, with EGP 2.3 billion outstanding.

Investment Property & Investment Property under Development balance amounted to some EGP 3.7 billion on 31 March 2022. Total receivables stood at EGP 21.2 billion, of which EGP 5.1 billion are short term receivables providing strong cash flow visibility for the company. A total of EGP 2.5 billion of receivables are reported on the balance sheet, reflecting only the receivables relating to delivered units already recognized as revenue. On the other hand, some EGP 18.7 billion of receivables related to undelivered units are disclosed in the footnotes.

Total backlog of unrecognized revenue stood at EGP 25 billion as of 31 March 2022, providing strong revenue visibility for the company. Commenting on the results Magued Sherif SODIC’s Managing Director said “We are happy to deliver a strong set of results for the first quarter of the year, showing growth in both gross contracted sales and profitability. We believe these results, in addition to our leading brand equity, diversified product offerings, and disciplined approach to management, put us on track to deliver another record year of growth for SODIC despite the economic headwinds and inflationary backdrop.”


SODIC is one of the region’s leading real estate development companies, currently developing a number of diversified projects in Egypt. SODIC’s developments in East and West Cairo and Egypt’s North Coast range from residential, retail, and commercial projects to large scale mixed-use developments. SODIC is listed on the Egypt’s Stock Exchange (Ticker OCDI). For more information, please visit