Sanimed Records Improved Net Result Despite Challenging Year
Sanimed has reported an improvement in its net result, reducing its losses to 8,687 million dinars in 2023 compared to 9,941 million dinars in 2022.
The company's operating revenue saw a significant decline, dropping from 58,395 million dinars in 2022 to 40,764 million dinars in 2023, a decrease of 30.2%. Meanwhile, operating expenses were reduced by 28.7%, from 61,857 million dinars in 2022 to 44,132 million dinars in 2023.
Notable events during the period include the revaluation of the company's land, which generated a revaluation gain of 17 million dinars, including 2,741 million dinars from legal revaluation.
Sanimed issued several treasury bills totaling 4 million dinars, subscribed by Somocer and Sotemail, with an annual interest rate of 10.5% renewable: 1.2 million dinars (April 28, 2023 - August 26, 2023), 0.8 million dinars (May 22, 2023 - September 19, 2023), and 2 million dinars (May 8, 2023 - September 5, 2023).
Due to the negative results of the new production line tested in January 2023, the management decided to limit production activity to intermittent furnaces starting from March 1, 2023. Corrective actions were taken, allowing for a restart on November 1, 2023.
Finally, the company revised the useful lives of certain tangible assets based on expert technical opinions. The new economic lives, applied from January 1, 2023, resulted in a reduction of depreciation expenses by 3,089 million dinars compared to the previous lives.
Despite a significant decline in revenue, Sanimed managed to reduce its net losses thanks to strict cost management and strategic adjustments. The asset revaluations and financial decisions made in 2023 demonstrate an effort to stabilize the company's financial situation.