Tunisian Glassware Company (Sotuver) Releases Financial Statements for First Half of 2024
The Tunisian Glassware Company (Sotuver) has published its financial statements for the first six months of the 2024 fiscal year. The period was marked by a significant reduction in net income, which decreased from 21,116 million Tunisian dinars (Mtnd) as of June 30, 2023, to 6,119 Mtnd this year.
The main reason for this sharp decline is the drop in revenue, which fell by 39.7% to 48,675 Mtnd. The EBIT (Earnings Before Interest and Taxes) stood at 9,086 Mtnd, compared to 23,508 Mtnd the previous year. Additionally, the company recorded a net financial charge increase of 36.7% to 6,413 Mtnd.
These figures were expected, as the company has embarked on an investment program worth 50,144 Mtnd. The objective is to modernize the factory and strengthen the company's position in the market.
The main component of this investment program involves the reconstruction of one of the two furnaces at the factory, an operation that is part of the normal process of glass furnace operation, which requires a complete renovation every ten years. In the case of furnace 2, this renovation will take place after eleven years of operation. The company will also acquire new state-of-the-art equipment to modernize its production chain. The total envelope for this project is 32,081 Mtnd.
These efforts will enable the company to improve its operational efficiency and technical expertise, allowing it to penetrate new markets in line with its 2025/2030 commercial policy and strategy.
Sotuver has also proceeded with the repurchase of a portion of its subsidiary SGI's shares for an amount of 18,063 Mtnd. This operation increases the company's stake in SGI's capital to 52%. The idea is to better integrate the subsidiary's activities and generate significant industrial and technical synergies.
The market has already been informed, and the company has posted a return of 4.17% since the beginning of the year. This is a stock to hold for the medium and long term, especially since the 2024 activity will be limited to a single furnace.
