EARNINGS WATCH- SODIC profits dip in 1Q2019: SODIC’s 1Q2019 net profits fell 24% y-o-y to EGP 161 mn from EGP 211 mn, the real estate developer said in its earnings release (pdf). Revenues rose 84% to EGP 941 mn from EGP 512 mn last year. The company’s net contracted sales fell 26.5% to EGP 881 mn from EGP 1.2 bn in 1Q2018 on the back of limited new launches. A large amount of cancellations in January pushed the cancellation rate to 12% of gross contracted sales during the quarter.

SODIC is targeting EGP 7.2 bn of contracted sales this year as Al Yosr plot in West Cairo is comes into the company’s pipeline. The high-profile developer plans to deliver some 1,151 units across 10 projects with an estimated value of EGP 5.1 bn which is expected to boost revenue growth by 38% this year, driven by deliveries at Vilette.

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