Alkimia Publishes Delayed Q2 2024 Activity Indicators, Revealing Challenges Ahead
Alkimia has finally released its activity indicators for the second quarter of 2024, two months behind schedule. The fully export-oriented company, specializing in the production of technical sodium tripolyphosphate (STPP), has reported a strong rebound in the second quarter of the year. Revenue has increased by 50.5% to 38,901 MTND. Over the entire first half of the year, sales have now risen by 1.8% to 62,792 MTND.
However, these sales figures should not mask the significant challenges the company is facing. A decrease in STPP production due to a lack of phosphoric acid has led to plant shutdowns and a decline in demand from customers. This instability in Alkimia's deliveries has prompted most of its major clients to abandon STPP and opt for cheaper and more stable substitute products. Additionally, the company is facing stiff competition from Russian and Chinese producers in terms of pricing.
The company had pinned its hopes on diversifying its group with the launch of the crystallized MAP (monoammonium phosphate) plant, which has an initial production capacity of 25,000 tons per year. However, it has only produced 5,827 tons in six months, due to the punitive pricing policy practiced by the Tunisian Chemical Group for the supply of ammonia and phosphoric acid, making Alkimia's products uncompetitive. As a result, the soluble MAP unit has been shut down for over three months in 2024.
A capital increase of 20 MTND has just been completed, marking the first step in the company's restructuring. A comprehensive solution must be found, taking into account the interests of all stakeholders. The company's stock has already lost 40.07% of its value since the beginning of the year.
