Assad's Second Quarter 2024 Results: A Mixed Bag
Revenue Down 1.4%, but Exports Shine
Assad's second quarter 2024 results show a slight decline in global revenue, down 1.4% to 23,042 MTND. Local sales are behind this trend, dropping 7.5% compared to the second quarter of 2023, to 11,006 MTND. On the other hand, exports performed well, increasing by 4.9% year-over-year, to 12,036 MTND.
Strong First Half Performance
Since the beginning of the year, and thanks to excellent first-quarter results, total revenue has reached 42,189 MTND, up 13.9% compared to the first half of last year. Export sales represent 57.6% of revenue for the period, driving growth up 18.5% year-over-year, compared to 8.2% for the local market (17,885 MTND).
Production Takes a Hit
Production took a significant hit in the second quarter, down 16.9% to 166,059 standard battery equivalents. However, it's essential to consider the strong increase recorded during the first three months of the year. Overall, a 1.0% decline in production was observed, to 358,872 standard battery equivalents.
Debt and Investment
This is reflected in the total debt, which decreased by 5,530 MTND, to 92,370 MTND, down 5.6% compared to June 2023. Assad has invested little this year, with an envelope of 0.614 MTND.
Customs Penalty Looms Large
Despite these positive results, the market should focus on the news of the 234 MTND customs penalty, imposed as part of the old battery issue. The order book is filled with sale orders just minutes before the session opens. The penalty is 13 times the company's market capitalization, and it would be challenging to convince investors of a smooth exit from a battle with customs.