Les Ciments de Bizerte: A Recovery Plan in the Works
Les Ciments de Bizerte is one of the rare listed companies that has never reached its initial stock market price. Today, its market capitalization weighs in at less than 21 million Tunisian dinars (MTND), and its recent figures are among the most disappointing.
A Challenging Year
The year 2025 was marked by the continuous suspension of clinker production due to the lack of petroleum coke, the only energy source that allows the furnace to operate. This situation is a result of the company's financial difficulties, which have prevented it from importing this raw material. The cement manufacturer is currently limited to producing cement from imported or locally acquired clinker.
Financial Results
The reported negative results total -230,184 MTND, to which this year's losses will be added. Already, the first six months of 2025 show a loss of 26,685 MTND. However, the company's equity remains positive, at 116,482 MTND, thanks to three revaluation operations of fixed assets that allowed for the recording of 288,246 MTND in equity. It is now or never to launch a recovery plan before the impact of these operations on equity evaporates.
A Three-Phase Recovery Plan
The government has set out a structured plan in three phases:
- Short-term: The acquisition and transformation of clinker will continue, while trying to maintain a positive profit margin and reduce production costs. Financial support will be provided to enable the company to cover its operating cycle and finance its priority investments.
- Medium-term: The planned measures include the reactivation of rail transport to reduce logistics costs, the promotion of bulk cement use for its economic and environmental benefits, and the creation of a commercial branch in Tunis.
- Long-term: The reforms aim to strengthen the company's commercial port activity, increase clinker and cement exports, diversify products, and conquer new external markets.
Market Outlook
The trend of the stock on the market in the coming days will show whether investors really believe in this multi-year program. On the stock market, these recovery stories are well-received, and the stock price usually anticipates the implementation of the planned program. This is a development to watch closely.
