Morocco’s Cosumar Recorded 30% Increase in Net Income in first half of 2021

A financial press release published following the meeting of the Board of Directors of Cosumar, Morocco’s newly established sugar refinery, has reported the company’s consolidated turnover for the first half of 2020 was MAD 4.382 billion ($480 million), up 2.9% from the first half of 2020.

The growth was primarily driven “by the increase in the volume of local sales which shows an increase of 5.7% while the volume of export sales remains at the same level as the previous year despite a difficult market context,” according to the statement.

In the first quarter of 2019, the company generated a gross operating surplus of MAD 976 million ($109 million), an increase of 7% it said was largely due to a spike in sugar sales in the local area.

Driving this was a recovery in domestic consumption and sales of national sugar as well as by improving production site productivity, noted the statement.

According to Cosumar, the sugar plant produced 340 kilotons (kt) of white sugar at the end of June 2021, compared to 325 kt at the end of June 2020, representing 88% of the campaign.

“Indeed, the results of the 2021 campaign show a total production of 388 Kt against 526 Kt, a decrease of 26% compared to the previous campaign, following the difficult climatic conditions which characterized this campaign,” the press release highlights.

Cosumar’s net income reached MAD 530 million ($59 million) as of June 20, an increase of MAD 182 million since the beginning of 2020. The company explained that this performance is largely due to financial improvements and Cosumar’s contribution of MAD 100 million to the Special Fund for the management of the Covid-19 pandemic in 2020.

For the second quarter of 2021, Cosumar anticipates a sustained improvement in commercial activity on the local market due to the easing of restrictive measures and the opening of borders.

In terms of preparations for the 2021-2022 agricultural season, the group reports that measures have been taken to prepare the ground for sowing beets and canes in satisfactory conditions. It added that it will continue to provide assistance to aggregated farmers as a health measure against the spreading Covid-19 pandemic during the second semester of 2021.

In addition, the Durrah refinery started operating and selling its products at the start of the third quarter of 2021, with growth expected in the months to come despite Saudi Arabia’s health restrictions.