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 The Sixth of October Development and Investment Company (SODIC) has released its consolidated financial and operational results for the first half of 2026. The developer reported an exceptional 201% surge in contracted sales, although net profit saw a decline due to tightening profit margins and rising revenue costs.

SODIC’s net profit after tax and non-controlling interests fell by 36% to record EGP 834 million in H1 2026, compared to EGP 1.298 billion during the same period in 2025. Consequently, the net profit margin contracted to 14%, down from 27% the previous year, with Earnings Per Share (EPS) standing at EGP 0.65.

Operational Highlights: Record Sales and Deliveries

Despite the drop in net income, SODIC achieved robust operational growth across its core metrics:

Contracted Sales: Reached a record EGP 23.5 billion, a massive 201% year-on-year increase from EGP 7.8 billion in H1 2025.

Unit Deliveries: Handed over 557 units, marking a 78% increase compared to 313 units in the prior year. Deliveries included 302 units in the North Coast, 192 units in West Cairo, and 63 units in East Cairo.

Cash Collections: Reached EGP 10.2 billion, an 18% increase from EGP 8.6 billion in H1 2025.

Unrecognized Revenues: Reached a solid EGP 116 billion by June 30, 2026, providing high visibility for future cash flows and revenues from sold units currently under development.

Financial Performance and Margins

Revenues from operations grew by 25% to reach EGP 5.978 billion, up from EGP 4.779 billion in H1 2025. The West Cairo "VYE" project was a major driver, contributing 35% of the total delivery value, while East Cairo projects contributed 20%.

However, the cost of revenues more than doubled to EGP 4.353 billion, squeezing overall profitability.

Gross Profit: Dropped to EGP 1.625 billion (from EGP 2.771 billion), bringing the gross profit margin down to 27% from 58%.

Operating Profit: Recorded EGP 942 million, with the operating margin falling to 16% from 38%.

CAPEX: Total investment expenditures rose by 8% to hit EGP 5.3 billion.

Balance Sheet and Liquidity

SODIC maintained a highly liquid and resilient balance sheet. Total assets expanded to EGP 100.436 billion by the end of June 2026, up from EGP 89.882 billion at the end of 2025. Total equity also grew to EGP 16.738 billion.

The company reported a strong cash balance of nearly EGP 4 billion (EGP 3.767 billion exact). Financial leverage remained low, with bank debt to equity standing at 0.66x, and total outstanding debt at EGP 9.8 billion. Furthermore, the total notes receivable balance stood at EGP 102.1 billion, of which EGP 88.8 billion is kept off-balance sheet as it relates to contracted sales for undelivered units. Total liabilities increased to EGP 83.698 billion.

Strategic Developments and Expansions

H1 2026 was marked by key strategic milestones, most notably the expansion of the global "Nobu" brand in Egypt. On June 19, SODIC launched "Nobu Residences," its first branded residential project in the market, followed by the official opening of the Nobu restaurant in New Cairo's EDNC.

Additionally, the developer signed an escrow account agreement with Banque Misr and Madar in April to co-develop the "Eastvale" project in New Cairo.

Ayman Amer, SODIC’s General Manager, expressed satisfaction with the operational momentum, stating that the strong sales, deliveries, and collections underline the company's commitment to building a robust project portfolio and delivering premium real estate products that meet evolving client needs.