'2025 off to a rocky start for SAH, pursued by PGH'

African Manager

22-05-2025

At its Board of Directors meeting in April 2025, the SAH Group's parent company examined the group's activity report and approved the financial statements for the year ending December 31, 2024.
These showed an individual profit before tax of 53.711,961 million Tunisian dinars in 2024, compared with 37.394,731 MTD in 2023, an increase of 43.6%. There was also a net individual result of 49.793,360 MTD in 2024, compared with 34.464,200 MTD in 2023, up 44.5%.
The net profit group share was 61.608,801 MTD in 2024, compared with 35.650,047 MTD in 2023, a very good performance of +72.81%.
Mezni & El-Jaiez are still on cloud nine
However, unless there are changes in the next three quarters of the current financial year, it seems that, after 2024, Jalila Mezni's company will have to come back down to earth. The company, owned by the 35th most powerful businesswoman in the Middle East in 2025 according to Forbes, has had a poor start to the year.
Will the former banker and former footballer, the 'Power Couple' as they are known in the press, have to find the right remedy to sell Jalila Mezni's 45.84% holding in the company, which owns 64.67% of SAH, to PGH, who have clearly shown their willingness to do so?
Debt at the bottom of the table
Revenues on March 31, 2025 totaled 129.1 million dinars, compared to 133.6 million dinars on March 31, 2024, marking a 3.4% decline.
Investments at March 31, 2025 amounted to 4.5 million dinars, compared with 5.8 million dinars for the same period in 2024.
Management states that these investments 'correspond mainly to the construction of a production unit and depot at Béja', but provides no further explanation.
'As of March 31, 2025, the company's debt was 243.4 million dinars, down from 245.5 million dinars on December 31, 2024. The company's debt fell significantly during this period, from 245.5 million dinars to 243.4 million dinars.
Positive prospects, if we disregard current economic climate
According to its quarterly indicators for the first three months of the current financial year, the SAH Group is entering 2025 with a positive outlook, forecasting good growth in terms of revenues and margins.
This growth is initially being driven by the resumption of letters of credit for Libya and the reopening of the Tunisian–Libyan border.
However, the situation in Libya does not seem to be improving, as fighting between rival factions has resumed with renewed vigor.
Secondly, the SAH Group plans to develop its cosmetics range by 2025, focusing on exports to new markets. This range has come under heavy attack from competitors and has required significant advertising investment featuring prominent Tunisian personalities to defend it.
The company also plans to expand regionally by prospecting new export markets, notably in Mauritania, and consolidating its presence in existing markets. This expansion could put further pressure on the company's finances.
The founder and shareholder of the SAH-Lilas group is extending her business to include education and shows no signs of slowing down the expansion of her group.
In March 2018, she established two private educational establishments: the Tunisian International School Ezzahra in Ezzahra and the Tunisian International School El Menzah in El Menzah, according to our colleague WMC. This is despite the fact that the El Menzah TIS is not yet part of the SAH consolidation perimeter.
Finally, the goal is 'to improve profitability, in particular through the gradual reduction in raw material prices, in line with the comfortable margin levels to be achieved by 2024.'
This may be easier said than done, however, given the current international trade situation and the US administration's imposition of customs duties.