Siame Reports 54.1% Increase in Net Profit for First Half of 2024
The Industrial Company for Electrical Equipment and Materials (Siame) has announced a net profit of 1,748 million Tunisian dinars (Mtnd) for the first half of 2024, representing a 54.1% increase.
Revenue Up 13.7%
The company's revenue has progressed by 13.7% to 22,144 Mtnd. Exports have driven sales upward, with a total of 9,136 Mtnd, representing a 39.0% year-over-year increase. Purchases from the Tunisian Electricity and Gas Company (Steg) have reached 3,698 Mtnd, compared to 0,744 Mtnd during the same period in 2023. However, private local sales have recorded a 23.4% decline, to 9,308 Mtnd.
Operating Expenses and Profitability
The pace of improvement in the top line was faster than that of operating expenses, which have evolved by 12.3% to 19,345 Mtnd. As a result, the EBIT has been established at 2,803 Mtnd (2,237 Mtnd as of June 2023), and the EBITDA at 3,442 Mtnd (2,794 Mtnd as of June 2023).
Outlook for 2024
To achieve its objectives for 2024, Siame needs to accelerate its commercial dynamics. The company's estimates, presented in the 2023 annual report, forecast sales of 46,000 Mtnd, including 21,500 Mtnd for private customers on the local market, 15,000 Mtnd for foreign clients (particularly in Algeria and Iraq), and 9,500 Mtnd for the Steg. However, this will depend on the acceleration of public and private investment rates. The targeted net profit is 3,400 Mtnd.
Market Reaction
The market has reacted positively to these figures, with the stock price gaining 1.98% to 3,600 Tnd. We believe that the annual yield could return to positive territory by next week.
