Sonasid reports 91% profit increase, outlines ambitious expansion plans

Saturday 22 March 2025 - 09:20

By: Dakir Madiha

Sonasid reports 91% profit increase, outlines ambitious expansion plans

Sonasid, Morocco’s leading steel manufacturer, has announced a remarkable net profit of MAD 151 million ($15.1 million) for the fiscal year 2024, representing a substantial 91% increase compared to the previous year. This impressive performance marks the best results the company has achieved since 2009.

Despite facing numerous global market challenges, including diminished demand in Europe and heightened competition from Chinese exports, Sonasid’s consolidated revenue experienced a 10% year-on-year increase, reaching MAD 5.49 billion ($549 million). This growth was largely fueled by a 15% rise in sales volume, even amid a 5% decline in selling prices.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 24% to MAD 327 million ($32.7 million). Additionally, consolidated net income nearly doubled to MAD 141 million ($14.1 million). In light of these results, Sonasid’s board of directors plans to propose a dividend of MAD 39 ($3.9) per share at the forthcoming General Assembly.

Sonasid has demonstrated robust financial health, boasting a cash surplus of MAD 722 million ($72.2 million) by year-end December 2024. Throughout the year, the company invested MAD 197 million ($19.7 million) into initiatives aimed at enhancing operational excellence, advancing product development, and increasing valorization.

In December 2024, Sonasid launched its prestressed wire production line, initiating commercialization shortly thereafter. The company also introduced a new 50-20 fiber plant, with plans to expand into post-tension and pre-tension strand manufacturing by 2026. Furthermore, Sonasid is strengthening its foothold in the automotive sector.

The company's "Act for Impact" program has successfully generated MAD 300 million ($30 million) in cash flow, facilitated by effective management of working capital. Of the MAD 189 million ($18.9 million) earmarked for investments, MAD 75 million ($7.5 million) was allocated to sawmill development, while MAD 57 million ($5.7 million) was directed towards the construction of the prestressed wire plant.

Looking ahead to 2025, Sonasid anticipates a 5% increase in revenue and aims to cut production costs by MAD 40 ($4) per ton, down from MAD 213 ($21.3) per ton in 2024. The company plans to invest MAD 1 billion ($100 million) between 2025 and 2029, committing to the establishment of one new production facility annually until 2030.

In a strategic move to diversify its operations, Sonasid is venturing into non-ferrous metals, targeting the production of 6,000 tons of aluminum and 1,000 tons of copper by 2025. This initiative aims to address Morocco’s significant reliance on imports for these materials, which currently stands at 90%.

This expansion strategy is well-aligned with the rising demand from Morocco’s automotive and electric battery sectors. Even in the face of global market adversities, Sonasid has reported a 117% growth in Group Net Income Share (RNPG) compared to 2023, solidifying its position in the market.