Cairo, Egypt - SODIC "Sixth of October Development & Investment Company" released its consolidated financial results for the three months ending 31st of March 2016
Consolidated Income Statement Figures for the period ending 31st of March 2016:
· Revenues: EGP 187 million
· Net Profit: EGP 51 million
· Net Profit Margin: 27%.
Consolidated Balance Sheet Figures as at 31st of March 2016:
· Accounts Receivable: EGP 6.9 billion
· Cash Balance: EGP 2.1 billion.
Operational Review
With a single launch in Courtyards during the first quarter, net contracted sales came in at EGP 674 million. The first quarter's sales was driven by Courtyards contributing c.46%. East Cairo projects namely Villette and Eastown have contributed 29%. Caesar contributed c.13% with the balance coming from SODIC West projects namely Forty West and The Polygon.
Cancellations reached c.7% as a result of the cancellation of two large units in Villette, combined they represented c.26% of total cancellations.
Cash Collections came in at EGP 662 million during the first quarter with a cash balance of EGP 2.1 billion.
March 2016 witnessed the signing of the final contract with Heliopolis Housing in connection with the co-development agreement of 2.75 million sqm plot (655 acres) in East Cairo. As scheduled, phase 1 of this project will be launched during the first quarter of 2017.
Financial Review
Deliveries came in at 101 units delivered across 7 projects. This compares to 108 units delivered in the same period last year. SODIC recorded revenues of EGP 187 million compared to EGP 284 million in the same period last year. The decline in reported revenues is attributed mainly to the lower number of deliveries in Allegria and Kattameya Plaza as both projects are nearing completion, while deliveries in Eastown began in the second quarter of the year as scheduled.
Gross profit margin reached c.41% compared to c.45% in the same period last year. The delivery of three high margin units in Allegria during the first quarter of 2015 has resulted in the 400bps differential between both quarters. Net profit post minority interest came in at EGP 51 million with a margin of 27%.
Total cash balance reached EGP 2.1 billion and total bank debt stood at EGP 1.25 billion ending the quarter with a positive net cash balance. Our healthy balance sheet position remains supportive to our expansion mode.
Receivables reached c. EGP 6.9 billion by end of the first quarter of the year.
2016 Outlook
SODIC announced sales targets of EGP 4.9 billion compared to last year's EGP 4.4 billion achieved sales. Targeted deliveries are 935 units across 8 projects with 2016 marking our first deliveries in Eastown which started during the second quarter of the year. This compares to 721 units delivered in 2015.
-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 2016
