Egyptian property developer Six of October Development and Investment – SODIC reported Monday a 312 percent year-on-year rise in first quarter net profit of 211 million Egyptian pounds ($11.6 million).
Revenues jumped 275 percent year-on-year to reach 703 million pounds during the first quarter of 2017, reflecting the ramp up in delivered units.
“Revenues were bolstered by deliveries in Eastown Residences and Westown Residences that accounted to more than 80 percent of the delivered value.” SODIC said in a statement.
SODIC registered net contracted sales grew 71 percent to 1.2 billion pounds, showing a strong start for the year 2017, on the back of three launches with 1.7 billion pounds worth of inventory introduced in February and March.
The first quarter of 2017 saw the launch of two new projects; One16, a premium apartment offering in the heart of the vibrant SODIC West, and October Plaza launched on the 30-feddan plot in 6th of October. In addition, a new phase of Eastown Residences in New Cairo was launched in March of this year. The three launches displayed solid performance with sales growth reflecting both volume and price increases. The company reported the contracting of 340 units compared to 227 for the same period last year. In addition to the growth in volumes, a 20-30 percent increase in pricing post devaluation boosted sales for the quarter. Cancellations remained below 5 percent.
“Our results for the quarter reflect our continuing growth momentum. The strong trust of our clients in the SODIC brand has driven sales growth despite economic headwinds. Driven by our unwavering commitment to delivery, our financial performance is reaping gains. Our distinction in execution is reflected in the strong revenue growth and is solidified by our healthy profitability.” Magued Sherif, SODIC managing director, said.