Cellcom Publishes 2024 Financial Statements, Reports Net Profit of 0.851 MTND
Cellcom has released its 2024 financial statements, revealing a net profit of 0.851 MTND, a significant increase from the 0.046 MTND recorded in 2023. This improvement is attributed to substantially higher revenues, which ended the year at 62.538 MTND, representing a 17.9% year-over-year increase.
Gross Margin and Operating Expenses
The gross margin rose to 6.593 MTND by the end of 2024, compared to 5.346 MTND the previous year. The margin rate even gained 46 basis points to 10.54%. Notably, the company did not resort to aggressive pricing policies to drive sales.
In terms of operating expenses, Cellcom successfully controlled its personnel costs, reducing them by 25.6% over the year to 2.081 MTND. Depreciation and provision charges amounted to 0.401 MTND, following a net recovery recorded in 2023 (0.389 MTND).
EBIT and Financial Charges
The EBIT more than doubled, reaching 2.417 MTND. Financial charges totaled 1.454 MTND, indicating a significant need for working capital of 18.535 MTND. To cover this, Cellcom primarily utilized bank facilities of 12.337 MTND by the end of 2024, including 7.370 MTND in foreign currency financing.
Consolidated Accounts and Dividend Distribution
The consolidated accounts of Cellcom show a net group profit of 0.943 MTND, also an improvement over 2023 (0.218 MTND).
Shareholders should not expect a dividend distribution, as this profit will be used to absorb part of the carried-over losses, which amount to 5.063 MTND. At this rate, it will still take some time for these losses to be fully wiped out. This is a long-term value creation stock, but it should be purchased at a good price.
