Tunisian Society of Tire Industries (STIP) Releases Financial Statements for First Half of 2024
The Tunisian Society of Tire Industries (STIP) has published its financial statements for the first half of 2024. The figures show a turnover of 59,950 MTND, a 9.5% decrease compared to the same period last year. The local market remained stable, with a turnover of 50,721 MTND, while exports plummeted by 40.5% to 9,229 MTND.
The period was challenging, and the company's management decided, after consulting with the Central Commission for Control of Layoffs at the Ministry of Social Affairs, to halt activity (technical unemployment) at its two factories for two months starting from April 16, 2024. During this period, employees received 50% of their gross salary, while personnel ensuring the normal operation of the factories received their usual salary. This decision was made due to the high level of finished product stock reached by the company. To meet market needs, the company relied on its finished product stock, which decreased from 50,000 to 31,642 MTND over the two months.
Operating expenses decreased by 1.6% to 57,056 MTND, benefiting from the technical unemployment and a reversal of provisions for risks and charges of 1,292 MTND. However, it is worth noting that raw material prices have increased since July 2024, indicating that a genuine recovery is not expected in the second half of the year.
STIP maintained its net financial expenses at 4,436 MTND. Medium- and long-term debt increased from 5,596 MTND at the end of June 2023 to 12,394 MTND a year later. On the other hand, bank loans decreased by 10.8% to 89,223 MTND.
The net result for the period stood at -0.443 MTND, compared to a profit of 4,102 MTND for the same period in 2023. Equity remains positive, at 13,555 MTND, weighed down by reported losses of -85,273 MTND (excluding the deficit for the first six months of 2024).
On the market, these figures are not expected to have a significant impact on the company's stock price. The major problem facing the company remains the notification of adjustment from the Customs Directorate, amounting to 156,649 MTND, related to the non-repatriation of export products, which has been pending since 2020. The auditors considered in their report that, given the justifications presented by the company, the financial risk is estimated to be low. This situation will be closely monitored, as customs achievements seem to be in the spotlight of the President of the Republic in recent times.
