Moroccan Sugar Giant Cosumar Reports 7% Revenue Growth, Advances Saudi Refinery Plans

Cosumar posted a 7.1% increase in turnover in 2019, estimated at 8,211 MDHS against 7,667 MDHS at the end of 2018. It is the growth in export sales, which reached 518 Kt at the end of 2019, which allowed the increase in turnover, despite the unfavorable international context. The consolidated IFRS gross operating surplus is up 1.4% and the EBE at the end of 2019 is 1,840 million dirhams, up 1.4% compared to the same period last year.

The increase in the tonnages processed in the beet sugar factories, added to the improvement in sugar exports, are at the origin of the increase in the EBE. An overall good performance for the sugar subsidiaries which positively impacted their market share nationally, while the payment of the tax adjustment impacted the social net result, which shows an increase of 8.7% against 871 million DH last year.

On the outlook, ecoactu.ma reports that Cosumar’s supply capacity to the market will be strengthened by the new logistics platform in Tangier and the new white sugar storage silo. The group also plans to seize the opportunities of the white sugar market internationally thanks to the production surplus. Africa and the Middle East are in the group’s sights.

Regarding the new sugar refinery, at Durrah Sugar Refinery in Saudi Arabia, in which the Cosumar Group is a co-investor with 43.27%, the commissioning tests have started with a view to selling in the coming months. The Cosumar group will invest in diversification into the agri-food markets. This is why it is making efforts to integrate by developing COMAGUIS, its packaging and sales units in Conakry, Guinea, which started its activities in January 2020.