Sotrapil Announces Net Profit of 3,142 Mtnd for First Half of 2024, Down 37.5% Year-over-Year
Activity Indicators Show 10.1% Decline in Revenue to 7,249 Mtnd
Sotrapil has announced a net profit of 3,142 Mtnd for the first half of 2024, a 37.5% decrease year-over-year. The company's activity indicators have already shown a 10.1% decline in revenue, reaching 7,249 Mtnd. The main contributor to this decline is the drop in other operating income, specifically gains on hedging positions, which fell from 2,001 Mtnd as of June 2023 to losses of -0,370 Mtnd for the current period.
Operating Expenses Increase by 7.2% to 5,059 Mtnd
Meanwhile, operating expenses have risen by 7.2% to 5,059 Mtnd. However, thanks to an excess cash reserve, investment income totaled 2,825 Mtnd, compared to 2,783 Mtnd in 2023. The financial statements revealed that the company invested 9 Mtnd in various tranches of national bond issues, a highly profitable investment.
Decline in Gains Not a Major Concern
The decline in gains for the first half is not a major concern, as it does not reflect underlying problems with the company's activity. Moreover, this trend could reverse in the annual accounts. Sotrapil remains one of the best portfolio investments available on the market.
Share Price Up 1.02% with 8.03% Annual Yield
The company's share price has an annual yield of 8.03%. Despite the activity indicators already showing a decline, the share price has gained 1.02% since their publication, demonstrating that investors still have confidence in the company.
Dividend Expected to Remain High
We believe the dividend will remain high, given Sotrapil's ability to distribute it and the state's need to collect maximum revenue from participations. If you find an opportunity to acquire a quantity of shares, do not hesitate.
Note: Mtnd stands for millions of Tunisian dinars.
