OCP Group Achieves Over 69 Billion MAD in Revenue by End of September 2024

Tuesday 26 November 2024 - 14:41

The OCP Group has reported robust financial results, with its revenue (chiffre d’affaires) reaching 69.046 billion Moroccan dirhams (MAD) by the end of September 2024. This marks a 13% increase compared to the 61.03 billion MAD recorded during the same period in 2023. The growth was driven primarily by a significant rise in export volumes across all product categories.

Breakdown of Revenue Performance

The group’s revenue from phosphate-based fertilizers increased by 15% year-on-year in local currency, supported by higher export volumes. Notably, exports of Triple Super Phosphate (TSP) surged by an impressive 54%.

Phosphoric acid revenue also showed remarkable growth, rising by 52% year-on-year. This was attributed to higher export volumes to key markets, including Europe and India.

Conversely, revenue from phosphate rock declined by 39% over the same period, reflecting lower domestic sales volumes compared to 2023. Despite this, export volumes of phosphate rock to regions such as Europe and South America experienced a notable increase.

Financial Highlights

The group’s gross margin reached 44.49 billion MAD, a significant increase from 32.18 billion MAD recorded in the same period last year. This improvement was driven by revenue growth, lower raw material costs (notably ammonia and sulfur), and efficient cost management.

OCP’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first nine months of 2024 exceeded 27 billion MAD, compared to 17.17 billion MAD during the same period in 2023. The EBITDA margin rose to 39%, reflecting the company’s strong operational performance and enhanced production efficiency across its value chain.

Strategic Insights from Leadership

Mostafa Terrab, Chairman and CEO of OCP Group, highlighted the company’s strong operational and financial performance, emphasizing its leadership in product development and operational efficiency.

"We transformed a 13% increase in cumulative revenue this year into a 57% growth in EBITDA, achieving an industry-leading EBITDA margin of 39%," noted Terrab. He attributed these results to the group’s operational leverage and innovative economic model.

Terrab also underscored the group’s ability to adapt to market dynamics, which remained consistent in the third quarter. With steady supply and strong demand, OCP leveraged its industrial flexibility and commercial agility to meet the diverse needs of its global clientele.

Expanding Global Reach

OCP has continued to achieve double-digit growth in revenue from fertilizers and phosphoric acid since the beginning of 2024. The group has expanded its footprint into new markets by capitalizing on its production of phosphate-rich TSP.

Terrab emphasized that OCP’s ability to deliver large volumes of phosphate products in a timely manner remains a key strategic advantage. This enables the group to respond effectively to additional demand from major importing regions.

With these impressive results, the OCP Group solidifies its position as a global leader in the phosphate industry, demonstrating resilience and innovation in a competitive market.