OCP Group's Turnover Rises by 77% in First Quarter of 2022
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Loading... - Aria Scavo
- 17 May 2022
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The turnover of Morocco’s giant fertilizer group OCP reached MAD 25.32 billion ($2.50 billion) in the first quarter of 2022, indicating a 77% increase compared to the same period in 2021.
OCP’s turnover witnessed a strong performance during the first three months of this year, with the total figures -- MAD 25.32 billion -- being pointedly higher than the MAD 14.28 billion ($1.41 billion) the company’s purse registered in 2021.
OCP attributed the positive performance to the growing international demand for phosphate.
“The Russian-Ukrainian conflict intensified the tense situation in terms of supply/demand balance in the phosphate market and led to a further rise in prices, which was also supported by the increase in raw material costs, in particular ammonia,” OCP Group said in a statement.
The group noted it aspires to increase its production volume by 10% in 2022 to meet the demand in high-growth markets in a bid to further consolidate its standing as a world leader in its sector.
OCP's gross margin stood at MAD 15.88 billion ($1.57 billion) this year against MAD 9.26 ($917.69 million) in 2021, indicating that the rise in selling prices neutralized the impact of the increase in input costs -- particularly for sulfur and ammonia. The company’s gross margin rate was 63% in the first quarter of 2022 against 65% in the same period in 2021.
Meanwhile, the company’s earnings before interest, taxes, depreciation, and amortization -- also known as EBITDA -- recorded a year-on-year growth of 117%. OCP’s latest EBITDA stood at MAD 11.30 billion ($1.11 billion) against MAD 5.33 billion ($528.21 million) in 2021.
The company explained that the increase in revenues resulted in a record EBITDA margin of 46% against 37% in the first quarter of 2021.
OCP’s investment expenditures, meanwhile, reached MAD 2.98 billion ($295.32 million) in the first quarter of this year against MAD 1.75 billion ($173.43 million) in the same period last year.
The company concluded its statement by emphasizing that it is committed to investing in environmental and social programs to maintain its positive impact on global food security.
Morocco holds over 75% of the world’s reserves of phosphate rock, a key ingredient in fertilizer, and OCP is the world’s largest exporter of phosphate rock. Read More...
