Morning – The good financial performance of Managem makes up for the decline in SMI



The Managem group posted good financial results in the first half of 2018. These compensated for the decline in the performance of its subsidiary SMI. Net profit, the group's share, amounted to 231 million dirhams, an increase of 151% yoy compared to a turnover of more than 2.47 billion dirhams.

At the end of the first half of 2018, Managem achieved good financial results. The net income Group share (RNPG) amounted to 231 million DH, an increase of 151% on an annual basis. This increase is supported by the capital gain on the sale of the Pumpi project in Katanga, according to the holding in a statement. The financial result has now recovered by 40% to -86 million dirhams. This performance is attributed to the substantial 30% decrease in the group's indebtedness. The same trend for the operating result increased by 11% compared to the same period of 2017, accounting for 394 million DH. For its part, Managem's turnover amounted to 2.47 billion dirhams (-2%), thanks to the strong contribution of copper and cobalt activities, accounting for 54% of consolidated sales. The gross operating surplus (EBITDA) was consolidated at 879 million dirhams. Reason: the confirmation of the good fundamentals of the copper activities and the strengthening of the worldwide production of cobalt and zinc. This is driven by the sharp rise in metal prices. The three activities therefore saw their total contribution increase by 23 points to reach 85% of the consolidated EBITDA.
The first half of 2018 was marked by a whole series of results, including the completion of the feasibility study for the Or Tri-K project in Guinea and the launch of the project to expand the production chain for cobalt cathodes to increase the processing capacity by 20% . Similarly, Managem continued the construction of its new plant in Sudan with the aim of doubling production capacity by the end of 2018.
For the second half of the current year, the group intends to continue its growth strategy in Morocco and internationally to develop a "balanced and diversified" portfolio. The good results of the Managem group reflect the operational and financial performance of the group, as well as the resilience to the decline in the results of its subsidiary SMI. The latter saw its net profit drop from 197 million DH to -102 million. Turnover fell by 42% in one year to 344 million DH. This underperformance is mainly due to a decrease of 41% in the average processed quality, accentuated by the decline in silver prices. The gross operating surplus and operating result decreased by 211 million and 233 million dirhams respectively, due to the substantial decrease in sales of 12% of the processed volume.
On the other hand, the financial result showed an increase of DH 21 million, thanks to the positive impact of the hedging transactions of the dollar / dirham exchange rate.


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