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SODIC sold 674 units during the first six months of 2023, generating gross contracted sales of EGP 8.17 billion, an increase of 22% over EGP 6.67 billion of gross contracted sales recorded during the first half of 2022. Gross contracted sales during the period showed strong performance despite the company slowing down sales during the first quarter to review selling prices amid increasing construction costs. Sales were driven by strong demand for new launches of off-plan units and ready-for-delivery inventory across the SODIC\u2019s projects in the second quarter of the year despite a significant increase in selling prices due to inflation.<\/p>\n
Gross contracted sales were driven by strong sales on SODIC\u2019s projects across all main markets. West Cairo projects accounted for 52% of gross contracted sales, primarily driven by the continued strong demand for SODIC\u2019s relaunched 464-acre project, which contributed 32% of the period\u2019s sales. On the other hand, East Cairo projects accounted for 34% of SODIC\u2019s H1 2023 sales, on the back of strong uptake of newly released inventory on Villette which contributed 21% of the period\u2019s sakes. Finally, North Coast June accounted for 15% of gross contracted sales fueled by robust demand for the project\u2019s latest launch.<\/p>\n
Cancellations of EGP 816 million were recorded during the first half of 2023, representing 10% of the period\u2019s gross contracted sales. This is in line with a cancellation rate of 10% recorded in the same period in 2022 as the company currently prioritizes the cancellation of units in default, allowing these units to be resold at current market prices, supporting margins and increasing projects\u2019 total returns.<\/p>\n
Net cash collections reached EGP 4.06 billion for the period, with delinquencies at 4.5%. This compares to collections of EGP 2.93 billion and a delinquency rate of 8.2% recorded during the same period of 2022.<\/p>\n
SODIC delivered some 402 units during the six months period, of which 212 were in East Cairo projects, while West Cairo and North Coast projects accounted for 189 and 1 of the delivered units, respectively. This compares to 463 units delivered during the same period last year.<\/p>\n
CAPEX spent on construction during the period amounted to EGP 1.79 billion, compared to EGP 1.3 billion spent during H1 2022.<\/p>\n
Financial Review;<\/b><\/p>\n
\u00a0<\/b>Income Statement<\/b><\/p>\n
Revenues of EGP 2.92 billion were recorded during the first six months of 2023, representing a 7% increase compared to EGP 2.73 billion of revenues recorded during the same period last year.<\/p>\n
Revenues were mainly driven by deliveries in West Cairo projects October Plaza and SODIC West\u2019s Pavilion, Allegria Residence, and Six West, with West Cairo projects contributing 52% of the period\u2019s delivered value. On the other hand, East projects accounted for a further 47% of the value delivered during H1 2023 driven by deliveries on SODIC East.<\/p>\n
Gross profit increased 22% YoY on the back of higher revenues to record EGP 1.12 billion, implying a gross profit margin of 38%. This compares to a gross profit of EGP 941 million and a gross profit margin of 34% recorded during the first half of 2022.<\/p>\n
Operating profit for the six months period amounted to EGP 404 million, reflecting an operating profit margin of 14%. This represents a 4% growth over an operating profit of EGP 387 million and an operating profit margin of 14% recorded during the same period last year.<\/p>\n
Net profit after tax and non-controlling interests came in at EGP 335 million, growing 15% from the EGP 292 million recorded during the first half of 2022. Net profit margin expanded 80bps YoY to 11%.<\/p>\n
Balance Sheet<\/b><\/p>\n