Afric Industries reported a turnover of 13.081 million dirhams (MDH) for the third quarter of 2024 (Q3-2024), marking a 6% decline compared to the same period in 2023. The company attributes this decrease to a slowdown in export market sales, according to a statement outlining its quarterly performance indicators.
Despite the Q3 dip, cumulative sales for the first nine months of 2024 rose marginally by 1%, reaching 32.934 MDH compared to 32.691 MDH during the same period in 2023. This modest growth highlights a degree of resilience in domestic markets, even as exports falter.
The company’s investments fell dramatically, from 1.147 MDH in Q3-2023 to just 73,000 dirhams in Q3-2024. The limited investment focused on installing security equipment and updating IT infrastructure. This sharp decline raises questions about the company’s long-term strategic priorities and its ability to innovate amidst challenging market conditions.
Afric Industries’ cash flow situation improved notably, with a deficit of -144,000 dirhams in Q3-2024 compared to a significantly larger shortfall of -2.81 MDH in Q3-2023. This improvement is attributed to better client payment schedules, driven by the implementation of a new law regulating payment terms.
The drop in export sales underscores the challenges Afric Industries faces in maintaining its growth trajectory. While domestic sales offer some stability, the steep decline in investments suggests a cautious approach amidst uncertainties. However, improved cash flow and legislative changes provide a glimmer of hope for the company to stabilize its operations in the coming quarters.
