Egyptian property developer SODIC posts H1 net profit of $17mn

Egyptian real estate developer six of October Development & Investment (SODIC) posts H1 net profit of 157.9 mln Egyptian pound (US$. 17 mln) compared to 152.3 mln pounds a year earlier.

SODIC registered net sales at EGP 1.2 billion in 2016, a 90% increase compare to Q2 of 2016. The increase in sales is attributed to the launches of new phases in Villette and Eastown.

Bank debt for the company is EGP 1.2 billion, while the total cash balance was recorded at EGP 2 billion.

The company’s gross profit margin decreased to 36%, compared to 39% in 2015, due to the low-profit margin of the first units in the Eastown deliveries.

Approximately 60% of SODIC’s sales were from the East Cairo projects, while SODIC West projects contributed to 34% of the sales.

SODIC plans to launch a number of projects in the second half of 2016, including Caesar’s second phase, a 31 acre project in West Cairo, and new phases in both of SODIC’s existing project in East and West Cairo.