Assad Publishes Delayed Financial Reports for First Half of 2024
Assad has finally published its financial reports for the first half of 2024, revealing a loss of 3,279 MTND, compared to a loss of 7,189 MTND during the same period in 2023. This underperformance adds to the company's accumulated losses of 14,458 MTND.
Despite this, the company's revenue has improved significantly, with a 14.2% year-over-year increase, totaling 42,300 MTND. This includes 17,996 MTND from the local market (up 8.9%) and 24,303 MTND from exports (up 18.5%). However, operating expenses have increased, mainly due to stock variations of finished products. Purchases of consumed supplies have decreased by 15.8% to 25,748 MTND. Overall, these expenses have reached 40,508 MTND. The EBIT has turned positive, standing at 2,086 MTND, compared to -2,552 MTND at the end of June 2022. The EBITDA has also increased, rising from 0.258 MTND in the first half of 2023 to 4,039 MTND a year later.
Financial charges have consumed a significant portion, amounting to 4,789 MTND. Assad's debt is substantial, with loans totaling 29,729 MTND and bank concours reaching 63,079 MTND.
The company's biggest challenge at the moment remains its dispute with the Tunisian customs authority, which has imposed a fine of 234 MTND. Assad has consistently maintained that it collects old batteries on the local market legally, holding all necessary administrative authorizations for importing old batteries and exporting the entire production resulting from the transformation of imported old batteries in accordance with regulatory provisions. The company claims that the non-clearance of nearly 6,000 tons of imported old batteries is due to the customs authority's blocking of the NGP code.
An appeal has been filed against the judgment, dated July 15, 2024, and the management is confident in the solidity of its legal case.
In addition, while pursuing the appeal, the management plans to submit, before the deadline of June 20, 2025, a request to join the customs amnesty program established by the 2025 finance law. This would allow the company to cap customs penalties at an estimated 15,600 MTND.
A favorable outcome for this case is crucial for Assad's continuity. The company's operations are starting to show signs of improvement, with operational profitability recovered. The path to recovery remains long, but the company has the assets to climb back up.
