Best Lease Announces 2024 Financial Results
Yesterday, Best Lease's Board of Directors approved the financial statements for the 2024 fiscal year. The net result for 2024 stood at 10,261 million Tunisian dinars (Mtnd), down from 12,437 Mtnd the previous year.
According to the activity indicators for the 2024 fiscal year, net leasing revenue decreased by 2.0% to 28,375 Mtnd. Referring to the first-half accounts, we note that net financial charges have significantly increased, and this trend appears to have continued in the second half. The leasing certificates issued last year contributed to this increase. It's worth mentioning that the obligation to comply with Shariah financing rules deprives the company of bond market financing, thereby increasing financial charges.
At the same time, operating expenses decreased by 2.4% to 7,518 Mtnd. The impact of the increase in corporate tax, imposed by the 2025 Finance Law, affected profitability. We believe that the cost of risk also contributed to the decline in profit. Over the year, classified claims rose from 28,218 Mtnd in 2023 to 42,323 Mtnd, representing a 12.9% ratio of compromised assets.
Shareholders are summoned to an ordinary general assembly on April 26, 2025. The proposed dividend is 0.150 Tnd per share, subject to prior approval from the Central Bank of Tunisia, compared to 0.140 Tnd per share last year. If approved, the dividend yield would be 5.8%. The stock has gained 18.97% since the beginning of the year, representing a notable performance.
Investors should keep in mind that the cost of resources will remain high in 2025, as will the cost of risks. If interest rates decrease, profits would be under pressure, but the decline would be single-digit. The dividend is not in danger, and the shareholder remuneration policy, with a constant increase in dividends, will remain stable. Best Lease is a good investment for those targeting the medium and long term.
