SODIC reports lower income, higher revenues in 1Q 2023: Our friends at upmarket real estate developer SODIC saw their bottom line fall 17% y-o-y in 1Q 2023 to EGP 187 mn, according to the company’s latest earnings release (pdf). Revenues for the quarter rose 26% y-o-y to EGP 1.5 bn.

Economic headwinds hit sales: Gross contracted sales fell 25% y-o-y during the quarter after rising construction costs prompted the company to temporarily halt sales in early 2023 as it revisited its pricing strategy amid rising construction costs, it said in the release. SODIC sold 274 units during the quarter, amounting to EGP 2.78 bn in gross contracted sales. This is down from EGP 3.74 bn in 1Q 2022.

More price changes to come? “Going forward SODIC will periodically review its selling prices as it seeks to balance maximizing sales with managing cost inflation risk in the current inflationary environment,” the company said.

REMEMBER- It has been a challenging few months for real estate players, who are faced with the devaluation of the EGP and import difficulties on the back of an FX crunch that sent raw materials prices soaring. The Madbouly government has given developers a 20% deadline extension on their projects following pleas for state support.

Demand was “healthy”: “We have witnessed very healthy demand for the limited launches that we have released during the quarter. We will continue bringing forward releases across our projects during the year,” SODIC General Manager Ayman Amer said.

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