The turnover of the OCP group has recorded an increase of 36 percent in 2022 compared to the previous year, reaching more than 10.3 billion euros (114.5 billion dirhams).
According to an OCP press release, this performance mainly reflects the increase in sales prices in the three segments, which largely compensated for the decline in sales volumes.
At the retail level, the turnover of rock increased by 51 percent from one year to the other, mainly due to the improvement in prices, in a context of lower export volumes to the main importing regions, according to the same source.
As for phosphoric acid sales, they showed a slight increase of 1 percent from one year to the other, the fall in export volumes, mainly to Europe and India, having largely compensated for the rise in phosphoric acid prices, OCP said, noting that the fall in sales volumes to India was mainly explained by the evolution of the product mix in favour of fertilisers and the postponement of phosphoric acid imports in the second quarter.
Fertiliser sales increased by 44 percent compared to the same period last year as higher selling prices offset the impact of lower export volumes. Less favourable economic conditions for farmers, combined with higher prices, led to lower global demand.
The gross margin was 70.38 billion DH, compared with 55.22 billion DH in the previous year. The improvement in sales prices largely offset the increase in raw material costs, in particular ammonia and sulphur.
Meanwhile, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) increased by 38% to over 50 billion DH from 36.27 billion DH a year earlier. The improvement in sales prices and the Group’s operational efficiency resulted in an EBITDA margin of 44%.
Operating income amounted to 40,382 million DH; a significant increase compared to the 25.8 billion DH achieved last year.
Net financial debt amounted to MAD 50.94 billion, with a leverage ratio of 1.02x at 31 December 2022, compared to 1.24x at the end of December 2021.
“OCP announces a successful 2022 with record results. The Group recorded an exceptional operational and financial performance, supported by the increase in the prices of its products in all categories, as well as its constant efforts to optimise its production costs and operational efficiency,” highlighted the Group’s management, as quoted in the press release.
It continued: “With an EBITDA margin of 44 percent, OCP is positioned at the top of the industry, reflecting its main competitive strengths: industrial flexibility, commercial agility and continuous action to maintain its cost leadership. This performance reflects OCP’s strong growth strategy and commitment to long-term value creation.
HA/lb/abj/APA