19 August 2015
Cairo, Egypt, August 19, 2015, SODIC "Sixth of October Development & Investment Company" released its consolidated financial results for the first six months ending 30th of June 2015.

H1 2015 Highlights

SODIC's achieved sales in the first half came on track to achieving their sales target of 2015. Projects in East Cairo continue to see strong demand that is reflected in net contracted sales growing by 32% year on year to reach EGP 2 billion and deliveries came on schedule across 8 projects.

2Q15 witnessed Westown Hub's opening, SODIC's first fully leasable asset adding value to the flagship SODIC West development through its diversified retail offering. The Hub is almost 40% operational and is on target to reaching 60% occupancy by year end. The project will begin contributing to SODIC's top line in 2016 and the property is expected to generate an estimated EGP 30 million in recurring income once it reaches full occupancy.

August witnessed the launch of the first phase of SODIC's first coastal development "Caesar", a mere five months since its acquisition in March. The development located in the heart of Egypt's Mediterranean coast with a 1.1km beachfront offered a range of second home products to SODIC's existing client base.

Consolidated Income Statement Figures for the period ending 30 June 2015:

·         Revenues: EGP 585 million

·         Net Profit: EGP 146 million

·         Net Profit Margin: 25%

Consolidated Balance Sheet Figures as at 30 June 2015:

·         Accounts Receivable: EGP 5.8 billion

·         Cash Balance: EGP 2 billion

Operational Performance: Sales on Target and Efficient Collections

Net contracted sales reach EGP 2 billion, a 32% increase from last year and on track to achieve the previously announced EGP 4 billion target for 2014. The figure achieved was driven by sales of East Cairo projects which contributed to 83% of total sales. New launches were limited in the second quarter with only EGP 500 million of new inventory brought to the market in the run up to the Holy month of Ramadan.

Cash collections came in at around EGP 1.1 billion during the first half of 2015; a 26% increase over the same period in 2014. The diligent management of receivables has contributed positively to an EGP 2 billion cash balance in June 2015. Delinquencies, which represent delayed payments, remained low at 5%.

Financial Performance: Healthy Metrics & Growing Receivables

SODIC delivered 274 units across 8 projects in the first half of 2015, compared to 223 units in the same period last year.

Revenues came in at EGP 585 million with a gross profit margin of 42. The first half witnessed a significant improvement in profitability with a net profit margin of 25%; double that of the same period last year, resulting in a net profit of EGP 146 million. These results compare to revenue of EGP 636 million and net profit of EGP 79 million in the first half of 2014. The strong improvement in gross margins was mainly driven by the delivery of high margin units in Allegria and the Strip.

SODIC's balance sheet reflects the health of the company's financial position as well as its continued growth momentum. Cash balance stands at EGP 2 billion with total bank debt at EGP 1.1 billion, ending the period net debt positive.

Receivables continue to grow to reflect SODIC's sales backlog with EGP 5.8 billion of receivables in June 2015 compared to EGP 4.8 billion at year end 2014.

Outlook for the remainder of the year

SODIC is on track to achieving its stated targets for 2015.   The leading real estate developer continues to pursue expansion opportunities to grow its land bank both in Cairo's new urban communities and Egypt's secondary and coastal cities. On strategy, the second half will witness more launches in the East and West of Cairo from SODIC's existing land bank as well as further growth in SODIC's commercial portfolio.

-Ends-

About SODIC
SODIC is one of the region's leading real estate development companies and is currently developing a number of large and diversified projects in Egypt. SODIC's developments range from residential projects of different types to retail, commercial and large scale mixed-use city centers in east and west Cairo. SODIC is listed on the Cairo Stock Exchange (Ticker OCDI). For more information please visit www.sodic.com.

For more information contact:
Theodora Gabrah or Mona Seif at TRACCS Egypt
Tel: (+202) 3304-6870
Fax: (+202) 3303-1219 
Email:  theodora.gabrah@traccs.net - mona.seif@traccs.net

© Press Release 2015