Sonasid’s standalone revenue at the end of June 2024 reached 2.39 billion MAD, a 4% decrease compared to the same period in 2023. This decline was mainly attributed to falling steel prices on the international market, which negatively affected the company’s financial performance. The operating profit for the first half of 2024 was 52 million MAD, a decrease of 22 million MAD from June 2023. The erosion of the spread between scrap and rebar, a crucial measure in steel markets, significantly impacted Sonasid’s margins. However, the company mitigated these challenges by implementing strategic measures. First, a 5% increase in sales volumes was achieved through a stronger commercial focus. Second, the company improved its industrial competitiveness by investing in projects that reduced transformation costs. Third, Sonasid launched new high-value products, such as steel fiber, which helped drive growth.
The social net profit for Sonasid stood at 42 million MAD, down 11% year-on-year. Despite this decline, the drop in net profit was contained thanks to strong financial results, which saw a boost of 13 million MAD. This increase came from improved foreign exchange gains and dividends from Sonasid’s subsidiary, Longometal Armatures.
On September 19, 2024, Sonasid’s board of directors, chaired by Mr. Saïd Elhadi, met to review and approve the financial statements for the first half of the year.
In its consolidated accounts, Sonasid reported revenue of 2.44 billion MAD by the end of June 2024, representing a 4% decline from the previous year. However, the group’s net profit rose by 13%, reaching 21 million MAD. This positive result was supported by lower depreciation expenses related to IFRS and strong financial performance. Sonasid continues to maintain a strong and resilient balance sheet, with excess cash reserves, including investments, amounting to 532 million MAD as of June 2024.
Looking ahead to the second half of 2024, Sonasid is optimistic about growth opportunities in Morocco’s construction sector. The company remains focused on promoting a sustainable business model by launching innovative products and services and strengthening its leadership in the production of low-carbon steel. The company’s sales volumes grew by 5% by the end of June 2024, a sign of its ability to adapt and thrive despite challenging market conditions.
