Investment Company \u201cSODIC\u201d has released its consolidated financial results for the year ended 31 st of December 2023.
\nSODIC records EGP 30 billion in gross contracted sales, up by 42% YoY and records 164% growth in net income
\nStrong results with growth across key metrics and a focus on profitable sales and sustainable growth released its consolidated financial results for the year ended 31 st of December 2023.
\nOperational & Financial Highlights
\n\uf0a7 Gross contracted sales EGP 30.26 billion, up 42% YoY
\n\uf0a7 Cancellations 4% of gross contracted sales, down from 6% in 2022
\n\uf0a7 Net Cash collections EGP 10.5 billion
\n\uf0a7 Timely delivery of 1,427 units
\n\uf0a7 Revenues EGP 10.33 billion, up 32% YoY
\n\uf0a7 Gross profit: EGP 3.57 billion, up 36% YoY, reflecting a gross profit margin of 35%
\n\uf0a7 Operating profit: EGP 1.86 billion, up 187% YoY, implyig an operating profit margin of 18%
\n\uf0a7 Net profit after tax and non-controlling interests EGP 1.37 billion, up 164% YoY, delivering a net profit margin of 13%
\n\uf0a7 Delinquencies: 2.2%, down from 5.1% in 2022 Key Corporate Highlights
\n\uf0b7 May 15th: SODIC acquired 180 acres directly south of North Coast project Caesar, launching the project in record three months.
\n\uf0b7 July 11th: SODIC signed a revenue share deal to develop 440 acres on the North Coast
\n\uf0b7 August 30th: SODIC signed a partnership agreement with Nobu Hospitality for their expansion into Egypt for the first time, bringing their renowned brand of restaurants, hotels and branded residences to two of SODIC\u2019s developments
\n\uf0b7 November 1st: SODIC begins deliveries in signature project \u201cThe Estates\u201d, marking it the first developer in Egypt to start delivery in New Zayed.
\nOperational Review
\nSODIC sold 1,984 units during 2023, generating gross contracted sales of EGP 30.26 billion, an increase of 42% over EGP 21.29 billion of gross contracted sales recorded during 2022.
\nGross contracted sales during the period were diversified between SODIC\u2019s main markets, with West Cairo accounting for 51% of sales supported by the strong demand for the 464 Acres project and the Estates project which contributed to about c. EGP 12.9 bn in contracted sales, 43% of SODIC\u2019s contracted sales in 2023. East Cairo contributed 32% of the company\u2019s gross contracted sales on the back of robust sales on SODIC East, which contributed 16% of the year\u2019s sales. North Coast accounted for 17% of contracted sales during 2023.
\nCancellations of EGP 1.1 billion were recorded during 2023, representing 4% of the year\u2019s gross contracted sales. This compares to a cancellation rate of 6% during 2022. Including Treasury Bills
\nNet cash collections reached EGP 10.5 billion for the period, with delinquencies at 2.2%. This compares to collections of EGP 7 billion and a delinquency rate of 5.1% recorded during 2022.
\nSODIC delivered some 1,427 units during the year, of which 911 were in East Cairo projects, while West Cairo and North Coast projects accounted for 511 and 5 of the delivered units respectively. This
\ncompares to 1,279 units delivered during the previous year.
\nDeliveries on the 655-acre flagship East Cairo project SODIC East started in 2022, with the company delivering 431 units within the year 2023.
\nCAPEX spent on construction during 2023 amounted to EGP 6 billion, compared to EGP 3 billion spent last year.
\nFinancial Review
\nIncome Statement
\nRevenues of EGP 10.33 billion were recorded during 2023, representing a 32% increase compared to EGP 7.81 billion of revenues recorded during 2022. Revenues were mainly driven by deliveries in East Cairo projects which accounted for 56% of SODIC\u2019s deliveries by value during the year. East Cairo projects V Residence, SODIC East and EDNC, accounted for 20%, 15% and 12% of the value delivered during the year respectively, together representing 47% of the total value of deliveries. West Cairo and North Coast projects contributed 43% and 1% of the delivered value respectively during 2023.
\nGross profit came in at EGP 3.57 billion, implying a gross profit margin of 35%, gross profits recorded a 32% growth over 2022, compared to a gross profit margin of 28% in 2022, expanding 650 bps YoY.
\nOperating profit of EGP 1.86 billion was recorded during 2023, reflecting an operating profit margin of 18% growing 187% YoY.
\nNet profit after tax and non-controlling interests came in at EGP 1.37 billion and implying a net profit margin of 13% and EPS of EGP 3.85.
\nBalance Sheet
\nSODIC continues to maintain a strong liquidity position with total cash and cash equivalents amounting to EGP 2.66 billion.
\nBank leverage remains low, with bank debt to equity standing at 0.37x. Bank debt outstanding amounted to EGP 3.22 billion as of 31 December 2023. Debt to equity amounted to 0.43x at year-end 2022, with EGP 3.16 billion of outstanding debt.
\nTotal receivables stood at EGP 48.1 billion, of which EGP 10.29 billion are short term receivables providing strong cash flow visibility for the company. A total of EGP 6.7 billion of receivables are reported on the balance sheet, reflecting only the receivable.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investment Company \u201cSODIC\u201d has released its consolidated financial results for the year ended 31 st of December 2023. SODIC records EGP 30 billion in gross contracted sales, up by 42% YoY and records 164% growth in net income Strong results with growth across key metrics and a focus on profitable sales and sustainable growth released […]<\/p>\n","protected":false},"author":5,"featured_media":2621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[127,91,39,83,130,43,111,15],"tags":[3538,3532,3530,3546,2036,2650,3534,3536,3528,3542,3540,3544],"class_list":["post-2620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis-en","category-arab-countries-en","category-business-economy-en","category-egypt-en","category-featured-en","category-finance-investment-en","category-mou-partnerships-en","category-press-releases","tag-caesar","tag-cancellations","tag-contracted-sales","tag-ednc","tag-egypt","tag-financial-results","tag-net-cash-collections","tag-nobu-hospitality","tag-sodic","tag-sodic-east","tag-the-estates","tag-v-residence"],"yoast_head":"\n