SODIC reports 54% increase in new sales in 2Q2022
Upmarket real estate developer SODIC reported (pdf) 51% y-o-y growth in revenues to EGP 1.54 bn in 2Q2022 on the back of higher deliveries at its East Cairo projects. SODIC’s bottom line declined 46% in the same period due to deliveries from the first phases of SODIC East, which accounted for 39% of revenue delivered in the quarter. “Early phases of new projects generally carry lower margins, and margins gradually improve as we move on to deliver more advanced phases of our projects,” SODIC said. On a six-month basis, SODIC saw its net income rise 31% y-o-y to EGP 292 mn on the back of 46% revenue growth.
Gross contracted sales were up 54% to EGP 2.94 bn from the sale of 445 units during the April-June period, with the company’s June project on the North Coast accounting for 43% of units sold. Projects in East Cairo contributed 36% of sales on the back of strong performance of SODIC East, while West Cairo accounted for the remainder.
East Cairo projects topped SODIC’s total deliveries for the quarter, according to the release. SODIC delivered around 299 units, with 239 in East Cairo, 57 in West Cairo and three in North Coast projects.
REMEMBER- For real estate companies, sales ≠ revenues. They book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project.