Carthage Cement Announces 2024 Financial Results
Revenue Down 3%, Operating Profit Up 5.4%
Carthage Cement announced its 2024 financial results yesterday, revealing a revenue of 421,573 MTND, a 3% decrease compared to 431,588 MTND in 2023. Despite this decline, the company's operating profit saw a significant increase of 5.4% year-over-year, rising from 156,334 MTND in 2023 to 164,823 MTND in 2024. The net result was also positive, with a 27.3% increase compared to 2023, reaching 70,256 MTND.
This performance confirms the company's excellent health, which has been observed for several years. The local market is not very buoyant, with a slowdown in public investments and a stagnant real estate sector. Operating margins are not comfortable, prompting management to revise operations. However, the company's history is noteworthy, having transformed from a debt-ridden and loss-making entity to a major player in the cement production industry, now focused on reducing its debt.
On the market, the company's stock has fallen by 4.1% since the beginning of the year, reflecting the general economic dynamics rather than the company's fundamentals, which have significantly improved over the past few years. We believe that this profitability turnaround is the most important aspect, especially since the sale project is no longer on the agenda, in our opinion. The state is preserving struggling entities, so it's worth noting a company that is bouncing back and has the potential to become a revenue source in the coming years.
