SANIMED's Losses Widen, Net Result Reaches -6,389 MTND in H1 2024
SANIMED's financial struggles continue, with a net result of -6,389 MTND at the end of the first half of 2024. Revenues plummeted by 24.4% to 15,811 MTND, outpacing the decline in operating expenses (-16.4% to 20,166 MTND). The EBIT stood at -4,228 MTND, compared to -2,469 MTND the previous year. High financial charges, amounting to 2,453 MTND, contributed to the net result.
A significant portion of SANIMED's problems stems from the 38.1% decline in exports to 6,800 MTND. Supply chain disruptions and delays in implementing the company's financial restructuring plan are to blame for this situation. However, the company has announced that it has secured principle agreements with UIB, BNA, and BIAT banks for the consolidation of its commitments, marking a positive development. Another notable achievement is an agreement with the tax administration, which has saved the company 0.623 MTND in late payment penalties.
To bolster its equity, SANIMED has conducted a partial revaluation of its constructions, effective as of June 30, 2024, generating a special revaluation reserve of 10,441 MTND.
While we believe the company may partially recover in the second half of the year, it is challenging to see its net result turn positive. The entire SOMOCER Group faces challenges related to its ownership structure, and prospects will become clearer after the lifting of the judicial administrator's mandate.
