Ivorian sugar producer Sucrivoire posts worst results since 2016 IPO
TLDR
- Sucrivoire, the second-largest sugar producer in Côte d'Ivoire, reported a 17.91% decline, with a loss of 10.32 billion FCFA in the 2023 financial year.
- The decline in sales was due to an 11% drop in merchandise sales and a 28% drop in accessory product sales, despite a 6% increase in sales of Sucrivoire's production.
- The company's turnover slightly decreased by 0.73% to 68.13 billion FCFA, resulting in an operating loss of 4.91 billion FCFA.
In the 2023 financial year, Sucrivoire, the second-largest sugar producer in Côte d'Ivoire, reported a 17.91% decline, with a loss of 10.32 billion FCFA (c.$17 million), marking its worst financial performance since its IPO in December 2016 on the BRVM.
This loss is attributed to a slight drop in sales and significant provisions recorded. Despite strong sugar demand in 2023, the company's turnover decreased slightly by 0.73% to 68.13 billion FCFA from 68.64 billion FCFA in the previous year.
This decline was due to an 11% drop in merchandise sales and a 28% drop in accessory product sales, offsetting a 6% increase to 47.75 billion FCFA in sales of Sucrivoire's production. The slight contraction in sales, coupled with significant provisions of 12.82 billion FCFA, resulted in an operating loss of 4.91 billion FCFA, down 1.05%.
Key Takeaways
Since the beginning of the year, Sucrivoire's stock has followed a downward trend. On May 13, 2024, the stock price reached its lowest level in 15 years, dropping to 430 FCFA, a loss of 10.47%. The company's 2024 outlook is favorable, with a profit of 4.68 billion FCFA in the first three months, an 80% increase compared to the same period in 2023. Turnover also increased by 17% to 28.84 billion FCFA, driven by a 12% rise in sales volume to 49,142 tonnes. Management estimates a 19% increase in production for the 2023/2024 sugar campaign, planning to produce 89,000 tonnes of sugar compared to 74,832 tonnes in 2023.
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