SMB Reports Revenue Drop as Bitumen Sales Volume Falls
TLDR
- Société Multinationale de Bitumes (BRVM: SMBC) reported a 22% drop in Q1 2025 revenue to 54.8 billion FCFA ($94.9 million) from 70.2 billion FCFA ($121.6 million) a year earlier
- The Ivorian bitumen producer saw net profit decline 7% to 2.7 billion FCFA ($4.7 million), while operating profit fell 10% to 4 billion FCFA ($6.9 million)
- Despite lower sales, SMB's refining margin improved to 6.56 dollars per barrel from 5.96 dollars per barrel in Q1 2024
Société Multinationale de Bitumes (BRVM: SMBC) reported a 22% drop in Q1 2025 revenue to 54.8 billion FCFA ($94.9 million) from 70.2 billion FCFA ($121.6 million) a year earlier. The Ivorian bitumen producer saw net profit decline 7% to 2.7 billion FCFA ($4.7 million), while operating profit fell 10% to 4 billion FCFA ($6.9 million).
Total bitumen sales volume decreased 30% to 69.8 kilotonnes, compared to 99.7 kilotonnes in Q1 2024. Export sea market sales were particularly affected, falling 53% (33.45 kilotonnes), which the company attributed to "road project scheduling."
Despite lower sales, SMB's refining margin improved to 6.56 dollars per barrel from 5.96 dollars per barrel in Q1 2024. The company expects improved performance as Ivory Coast's infrastructure development accelerates under the 2020-2025 National Development Program, which includes new construction and renovation of existing road networks.
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Key Takeaways
SMB, with capital of 4.87 billion FCFA ($8.4 million), is the largest bitumen producer in West Africa and supplies materials essential for road infrastructure development across the region. The company's performance often reflects regional infrastructure investment cycles. The first quarter's reduced volume suggests a temporary slowdown in project implementation rather than market contraction. Ivory Coast has committed significant resources to infrastructure development, with the transport sector receiving priority under the National Development Program. The government aims to improve connectivity through road rehabilitation and new construction, which should drive demand for bitumen products. Regional export markets, which typically account for approximately 40% of SMB's sales, have seen fluctuating demand due to varying implementation timelines for road projects in neighboring countries.
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