Tunisian Glass Company (Sotuver) Publishes Q2 2024 Results
Investments of TND 50.144 Million to Modernize Factory and Enhance Competitiveness
The Tunisian Glass Company (Sotuver) has released its financial results for the second quarter of 2024, marked by significant investments of TND 50.144 million. These funds aim to modernize the factory and strengthen the company's competitiveness.
Key Highlight: Sotuver Acquires Additional Shares in SGI Subsidiary
Notably, Sotuver has purchased additional shares in its subsidiary SGI for TND 18.063 million, increasing its stake to 52% from 30% at the end of 2023. This operation is expected to improve SGI's integration and create significant synergies.
Financial Results: Revenue Down 50% Due to Production Halt
The financial results show a notable decline in revenue. For the second quarter, revenue reached TND 22.907 million, down 50% compared to the same period last year. As of June 30, cumulative revenue stood at TND 50.127 million, representing a 39% decrease. This decline is attributed to a 90-day production halt for the decennial review of one of the factory's two furnaces, which accounts for 50% of the melting capacity.
Integration of SGI Mitigates Impact on Results
Despite this pause, the integration of SGI has attenuated the impact on the results. The consolidated cumulative revenue of Sotuver, including SGI, amounts to TND 110.707 million, with a breakdown of 35% for the local market and 65% for exports.
Production Value Down 38% Due to Furnace Halt
The production value stands at TND 54.124 million, down 38% compared to the same period last year. This decline is also linked to the furnace halt.
Debt Increases by 44% to Finance Modernization and SGI Acquisition
In terms of debt, Sotuver's global debt has increased by 44% to reach TND 142.855 million as of June 30, 2024, compared to TND 99.367 million at the end of 2023. This increase is mainly due to medium- and long-term debts contracted to finance the factory's modernization and the acquisition of SGI shares. Placements and liquidity have increased by 2% to reach TND 72.180 million.
Investments Total TND 50.144 Million
The semester's investments total TND 50.144 million, comprising the renovation of a furnace for TND 32.081 million and the purchase of SGI shares for TND 18.063 million.