Earnings watch: SODIC, TMG Holding, Naeem Holding report 2017 results
EARNINGS WATCH- SODIC reported a 39% y-o-y jump in net profit to EGP 597 mn in 2017, the company said in a statement (pdf). Revenues increased 11% y-o-y to EGP 2.3 bn during the year, driven mainly by on-schedule deliveries in the company’s various projects. Eastown Residences made up the bulk of the year’s deliveries at 55% of the total, and the company also began delivering units in its Courtyards developments, which comprised 12% of the total deliveries. SODIC’s earnings growth “was driven by our strong operating profitability, attesting to our disciplined approach to construction and prudent control of our expenses in this remarkably inflationary environment,” said Managing Director Magued Sherif. The company also launched its New Cairo project SODIC East in 4Q2017, adding EGP 57 bn in inventory to its sales pipeline. “We view 2018 with confidence, backed by positive outlooks for all our markets. The eminent drop in interest rate will act as another strong catalyst for growth.” Backed by “revenue visibility and an improved economic backdrop,” the company has also “set ambitious growth targets” for 2018 including eyeing EGP 8.7 bn in contracted sales.
Talaat Moustafa Group Holdings grew its bottom line 67% y-o-y in 2017 to EGP 1.38 bn, up from EGP 828.98 mn in 2016, according to an EGX filing (pdf). The company’s revenues also increased to EGP 8.53 bn in 2017, marking a 30% y-o-y rise from EGP 6.58 bn.
Naeem Holding saw its consolidated net profit drop 52% y-o-y to USD 1.25 mn in 2017, down from USD 2.59 mn the previous year, the company said in a regulatory filing (pdf). Consolidated net revenues also slipped to USD 13.2 mn, a 38% y-o-y drop from in 2016.