Sodic, one of the region’s leading real estate development companies, has started the year in a big way with triple digit growth in both revenues and profits for the first quarter which hit E£703 million ($46 million) and E£211 million ($14 million) respectively.

Announcing the results for the first three months, Sodic said its gross profit increased by 240 per cent YoY (year-on-year) to reach E£259 million ($17 million).

The decline in margins during the quarter reflect the effect of the delivery of the early phases of Eastown that began in May last year, stated the Egyptian developer.

In line with the company’s reputation for timely deliveries, Sodic handed over 399 units during the first quarter of the year. These timely deliveries represent an increase of 295 per cent YoY, with Eastown Residences and Westown Residences accounting for more than 90 per cent of the units delivered.

Sodic revenues came in at E£703 million, up 275 per cent YoY reflecting the ramp up in delivered units. Revenues were bolstered by deliveries in Eastown Residences and Westown Residences that accounted to more than 80 per cent of the delivered value.

Sodic said its bank debt to equity ratio remained low. A medium term facility package worth E£1.3 billion ($84.4 million) was signed with Arab African International Bank in March 2017 with a tenor of six years.

This new facility is expected to expedite the construction of commercial developments in Sodic West enabling the growth of the company’s recurring income portfolio while preserving its balance sheet liquidity to pursue land opportunities.

Commenting on the results, Magued Sherif, the managing director, said: "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," stated Sherif.

According to him, the cash and cash equivalents balance stood at E£2.8 billion ($180 million) at the end of the first quarter.

The company purchased over E£1 billion of treasury bills during the quarter securing higher returns on these balances, stated Sherif.

On the financial position, chief financial officer Omar Elhamawy said: "The liquidity Sodic enjoys places us on solid ground to pursue land opportunities as they arise, ensures our ability to deliver on our commitments to all our stakeholders and avails the financial strength to invest in our recurring income portfolio."

The Egyptian developer had closed the first quarter with E£1.2 billion net contracted sales recorded, showing a solid start to 2017.

Net contracted sales grew by a solid 71 per cent during the first quarter on the back of three launches with E£1.7 billion worth of inventory introduced in February and March, he added.-TradeArabia News Service