Tractafric Motors posts first net profit decline in five years

Daba Finance/Tractafric Motors CI posts 43% drop in annual net profit

AFRICAN STOCKS AND FINANCEMay 30, 2024 at 2:57 PM UTC

TLDR

Tractafric Motors in Ivory Coast faced a 42.80% decline in net profit in 2023 due to increased personnel costs and company expenses.
Despite the profit drop, the company experienced an 11.19% increase in turnover, reaching 77.88 billion FCFA, driven by higher service and accessory product sales.
Operating income decreased by 38.02% to 3.25 billion FCFA, showing the impact of rising expenses on the company's financial performance.

After four consecutive years of growth, Ivory Coast-based Tractafric Motors reported a significant decline in net results for the 2023 financial year, with a net profit of 2.08 billion FCFA ($3.4 million), down 42.80% from 3.64 billion FCFA in 2022.

This decrease is primarily due to a 23.71% rise in personnel costs and a substantial 155.06% increase in other company expenses, resulting in a 38.02% drop in operating income to 3.25 billion FCFA.

Despite these setbacks, the company's turnover saw an 11.19% increase, reaching 77.88 billion FCFA, up from 70.09 billion FCFA the previous year, reflecting higher sales of services and accessory products.

Key Takeaways

Tractafric Motors Côte d’Ivoire, the 33rd most valuable stock on the BRVM with a market capitalization of XOF 23.6 billion (approximately 0.28% of the BRVM equity market), has yet to release information regarding shareholder bonuses. The stock closed on Wednesday at 2,300 XOF per share, marking a 2% gain from its previous closing price of 2,255 XOF. Since the beginning of the year, Tractafric Motors' share price has risen by 21.1%, up from 1,900 XOF, positioning it as the third-best performer on the BRVM in terms of year-to-date performance.

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