Soretrak’s 2025 Financials: Heavy Reliance on State Subsidies Amid Governance Challenges

The Kairouan Regional Transport Company (Soretrak) has released its financial statements for the 2025 fiscal year. The company reported operating revenues of 35.850 million Tunisian Dinars (MTND), marking an 11.4% increase compared to 2024.

Financial Performance

Soretrak’s economic model remains heavily dependent on state support. Operating subsidies amounted to 23.452 MTND, accounting for 65.4% of total operating revenues. In contrast, the company’s own transport revenues—derived from regular lines, school transport, urban routes, and subscriptions—stood at 11.414 MTND.

Operating expenses reached 29.334 MTND, with personnel costs being the largest component at 15.993 MTND. Thanks to state backing, Soretrak reported an operating profit of 6.514 MTND and a net profit of 4.173 MTND.

Balance Sheet and Investments

The company’s total assets stand at 38.077 MTND. Soretrak has invested in fleet renewal, notably purchasing 24 new buses from Golden Dragon.

To finance its investments and operations, and beyond state support, the company relies on bank borrowing. Total financial debt is approximately 9.574 MTND.

Governance and Operational Challenges

Soretrak is vital to the Kairouan region but cannot operate without significant financial assistance from the state. Management must focus on resolving persistent issues, including:

• Asset Reconciliation Gaps: A lack of alignment between physical inventory of fixed assets and accounting records.
• Unregistered Land: Certain land parcels listed on the balance sheet remain unregistered.
• Overtime Management: The absence of a rigorous regulatory framework and traceability in the allocation and calculation of overtime hours, which significantly impacts the payroll (exceeding 1.768 MTND).

As with most public enterprises, governance remains the primary challenge for Soretrak.