Tunisian Automobile Company Posts Strong Results in 2025, But Opts Not to Distribute Dividends
The Tunisian Automobile Company has reported a net profit of nearly 9.9 million dinars in 2025, compared to 5.8 million dinars in 2024, representing a significant increase of 70.7%. This remarkable performance is a testament to the company's strong operations. Additionally, operating revenues have seen a substantial rise, from 109 million dinars in 2024 to 173.7 million dinars in 2025.
However, the company's total balance sheet has slightly decreased, from 107 million dinars to 100.1 million dinars, a decline of 6.4%. Despite these encouraging figures, the Board of Directors has decided not to distribute dividends to shareholders for the 2025 fiscal year. This decision is due to regulatory requirements.
In March 2026, the Central Bank of Tunisia issued a new circular (No. 2026-04) that requires vehicle imports to be financed solely through the importing companies' own funds. In other words, the Tunisian Automobile Company can no longer use documentary credits, a traditional banking tool for financing imports, to purchase vehicles from abroad. As of the end of 2025, the company had outstanding documentary credits totaling 47.9 million dinars, a considerable amount. This new rule may create pressure on the company's treasury and disrupt its daily business cycle.
This decision will be subject to shareholder approval at the next Ordinary General Assembly, the date of which will be announced shortly. The company's management will likely provide further details on the implications of this regulatory change and the measures being taken to mitigate its impact on the business.
