Sonasid Posts 91% Profit Jump, Plans Annual Factory Expansion Until 2030
Doha – Sonasid, Morocco's national steel company, reported a net profit of MAD 151 million ($15.1 million) in 2024, marking a 91% increase from the previous year.
The company's consolidated revenue rose 10% year-on-year to reach MAD 5.49 billion ($549 million), driven by a 15% rise in sales volume, despite a 5% decrease in selling prices.
Sonasid's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 24% to MAD 327 million ($32.7 million), while consolidated net income nearly doubled to MAD 141 million ($14.1 million).
The board of directors will propose a dividend of MAD 39 ($3.9) per share at the upcoming General Assembly.
Sonasid maintained strong financial health with a cash surplus of MAD 722 million ($72.2 million) by the end of December 2024.
The company invested MAD 197 million ($19.7 million) throughout the year, focusing on operational excellence, product development, and valorization.
In December 2024, Sonasid launched its prestressed wire production and began commercialization.
The company also opened a new 50-20 fiber plant, with plans to expand into post-tension and pre-tension strand manufacturing by 2026. Additionally, Sonasid is strengthening its presence in the automotive sector.
The company's 'Act for Impact' program generated MAD 300 million ($30 million) in cash flow through efficient working capital management.
Of the MAD 189 million ($18.9 million) allocated to investments, MAD 75 million ($7.5 million) went to sawmill development and MAD 57 million ($5.7 million) to prestressed wire plant construction.
Looking ahead to 2025, Sonasid projects 5% revenue growth and aims to reduce production costs by MAD 40 ($4) per ton, compared to MAD 213 ($21.3) per ton in 2024.
The company plans to invest MAD 1 billion ($100 million) between 2025 and 2029, with a commitment to open one new production facility annually until 2030.
The company is also diversifying into non-ferrous metals, targeting the production of 6,000 tons of aluminum and 1,000 tons of copper by 2025 to address Morocco's 90% import dependency for these materials.
This expansion aligns with the growing demand from Morocco's automotive and electric battery sectors.
Despite global market challenges, including reduced demand in Europe and increased Chinese exports, Sonasid's Group Net Income Share (RNPG) grew by 117% compared to 2023, marking its best performance since 2009.
The company's cost optimization efforts resulted in savings of MAD 87 million ($8.7 million) through a MAD 120 ($12) per ton reduction in production costs.
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