Sitex Publishes 2024 Financial Statements: Challenges Persist
The Industrial Textile Company-Sitex, listed on the Tunis Stock Exchange, has released its 2024 financial statements. The company's revenue for the exercise stands at 37,965 MTND, nearly stable compared to 2023. Its gross margin has been established at 2,268 MTND, down from 3,105 MTND the previous year. However, this is far from covering operational expenses, particularly administrative costs (4,265 MTND) and the cost of underactivity (8,985 MTND). The latter corresponds to the portion of fixed costs not incorporated into production costs. The EBIT shows an operating loss of 12,851 MTND (-12,016 MTND).
Net financial expenses, amounting to 8,113 MTND, are another burden for Sitex, sending its net result to -20,233 MTND. The company is trying to secure its BFR through bank facilities totaling 59,240 MTND as of 2024.
Equity remains positive, at 134,434 MTND. As a reminder, the company revalued its land in 2023, allowing it to constitute a special revaluation reserve of 152,334 MTND within equity. However, while this enables the company to display a theoretically healthy balance sheet, it does not truly resolve the issues of liquidity and underactivity. The draft resolutions for the next shareholders' meeting already show a reported loss of -58,833 MTND as of 2024.
The board of directors has approved an economic and financial restructuring plan based on the following elements:
- Conversion of SWIFT credit for an amount of 3,500 MTND
- Financing of relaunch investments for an amount of 6,000 MTND
- Restructuring of the BFR through the participation of Sicars for an amount of 24,000 MTND
Shareholders have been convened to an ordinary general meeting on June 25. This program will certainly be at the heart of the debates.
