Egypt property firm SODIC says nine-month profit hits $27.9m
Developer says it is on track to achieve targets in final quarter of 2015
The Egyptian property developer SODIC says it more than doubled its net profit in the first nine months of 2015.
The Sixth of October Development and Investment Company said it made $27.9 million (EGP 224m) in the first nine months of the year, compared to $12.6 million (EGP 99m) during the same period in 2014.
Revenues came in at $113.6 million (EGP 890m), while its gross profit margin stood at 40%, 5 percentage points higher than the same period last year.
The company attributed the improvement in profitability to the delivery of high margin units in its The Allegria and The Strip developments, as well as higher interest income and other operating income.
Its balance sheet has also supported growth with its cash balance at $242.6 million (EGP 1.9bn) and with its total bank debt at $140 million (EGP 1.1bn), ending the period net debt positive.
The company said it is on track to achieve its targets in the fourth quarter.
“Our land bank expansion plan continues and is strongly supported by the strength of our balance sheet. During the first nine months of the year we have acquired two land parcels, Caesar and a 30 acre plot in West Cairo, the former has already been successfully launched, and the latter to be launched in 2016. We continue to look for opportunities in both East and West Cairo as well as coastal cities.
“Our planned launches in 4Q15 include more phases of our residential products in Eastown, Villette and the Courtyards as well as the launch of two new buildings in the Polygon, our award winning office development in SODIC West.”
