Despite a drop in exported volumes, the group was able to capitalize on a sharp rise in selling prices to improve its income and turnover, which reached historic records.
The group saw its overall turnover rise sharply at the end of September to nearly 89.5 billion dirhams, in 55% increase compared to the same period in 2021.
“OCP’s results have fully benefited from the general rise in prices, with record operational and financial performance,” the group indicates.
This general increase in sales prices more than offset the drop in exported volumes compared to the same period last year.
In detail, the turnover of the rock increased by 74% compared to the same period last year. The turnover of phosphoric acid showed a slight decrease of 6% from one year to the next. This decrease is explained by the decline in exported volumes, mainly to Europe and India, which largely offset the increase in phosphoric acid prices.
On his side, fertilizer sales increased by 68%driven by a favorable price effect, offsetting the decline in exported volumes.
The group also improved the share of fertilizers in its overall sales and indicates that they account for 65% of turnover compared to 60% in the same period in 2021.
“High-demand markets such as South America, Asia and Africa accounted for 87% of our exports in volume over the period,” says OCP.
The gross margin improved by 48.5% and reached 56.2 billion dirhams, driven by the sharp improvement in selling prices which offset the rise in the cost of inputs such as sulfur and ammonia.
EBITDA shows a strong increase of 76% to almost 43 billion dirhams. Thanks to the increase in sales prices and the improvement in operational efficiency, the EBITDA margin reached 48% against 42% the previous year.
Investment expenditure amounted to 15.2 billion dirhams, against 7.1 billion dirhams a year earlier.
Ultimately, the office’s operating profit at the end of September doubled and stood at 36.3 billion dirhams.