Land'Or Sees 4% Decline in Revenue in First Half of 2024
Land'Or's revenue decreased by 4% in the first half of 2024 compared to 2023, primarily due to a significant 54% drop in export sales. However, the local market showed resilience with an 11% growth.
Export Sales Plummet
The decline in export sales is mainly attributed to the border closures between Libya and Tunisia, as well as complications related to opening letters of credit in Libya.
Production Down 15%
Production decreased by 15% in the first half of 2024 compared to the same period in 2023. The inflation of raw materials in 2023 had significantly increased production costs. To mitigate these costs, the company implemented an action plan and benefited from the decrease in raw material prices, resulting in a significant reduction in production costs and an improvement in gross margin, ensuring better long-term profitability.
Investments Total 5.6 Million Dinars
During the first half of 2024, the company invested 5.6 million dinars, comprising:
- 3.3 million dinars for production equipment and various upgrades
- 2.3 million dinars to increase the capital of its Moroccan subsidiary, Land'Or Maroc Industries
Debt Increases to 42.8 Million Dinars
The company's debt increased to 42.8 million dinars as of June 30, 2024, compared to 26.5 million dinars as of December 31, 2023, and 37.8 million dinars as of June 30, 2023. This increase is linked to the investments made.