CMGP: Improvement of Net Income by 2.6% in the First Half of 2025

In the first half of 2025, CMGP Group recorded a consolidated revenue of 1,121 million MAD, reflecting a slight increase of 0.4% compared to the same period in 2024. This overall performance illustrates the strength of the Group's integrated model, driven by robust commercial dynamics in the Retail Business Unit (BU), the ramp-up of industrial capabilities, and an enhanced international presence. Meanwhile, the Project BU reported a decline in revenue but managed to consolidate its order book and strengthen its execution capabilities, particularly on major water resource-related projects. The consolidated net income for the first half of 2025 stood at 97 million MAD, up 2.6% from the same period in 2024. This performance, supported by effective financial management and a strengthened financing structure, helped offset a decline in EBITDA, which fell to 178 million MAD, down 4.4%. This decrease was influenced by margin contractions in the Project BU and increased price pressures in the plastics sector. However, the decline was mitigated by strong fertilizer volumes, the resilience of the Retail BU, and improved margins in the phytosanitary and irrigation segments. The Retail BU continued its growth trajectory, achieving a revenue of 951 million MAD in the first half, an increase of 7.1% compared to 2024. This growth was supported by strong performance across all agro-supply segments, particularly in fertilizer sales, bolstered by the commissioning of new industrial units in Jorf Lasfar and Drarga. The phytosanitary products segment also benefited from sustained demand linked to a positive start to the agricultural season. Additionally, solar equipment continued to develop despite price pressures. This performance confirms the Group's ability to meet market needs through an integrated offering and an extensive commercial network. In the Industry BU, consolidated growth of 9.3% was recorded in the first half of 2025, driven by increased production capacity. The Jorf Lasfar site, dedicated to solid fertilizers, intensified its activities and significantly contributed to the increase in produced volumes. Concurrently, the Drarga site, which began production in the second quarter and specializes in soluble fertilizers, complemented the offering with liquid fertilizers and biostimulants. These developments resulted in a 92% increase in fertilizer volumes produced during the semester, enhancing the Group's industrial efficiency and consolidating its upstream integration. Commercially, intra-group sales rose by 27% to reach 246 million MAD, compared to 193 million MAD a year earlier, while sales outside the group declined to 49 million MAD from 77 million MAD at the end of June 2024. This decline is primarily attributed to a slowdown in the "Infrastructure" segment amid a market reconfiguration related to the upcoming launch of major projects under the national water strategy. On the international front, the BU International recorded a revenue increase of 20% compared to the first half of 2024, aligning with strategic objectives aimed at deploying the "one-stop-shop" model in Sub-Saharan Africa. This growth is driven by intensified irrigation export projects and strong agro-supply sales development in Ghana and Côte d'Ivoire. The Projects BU began a gradual recovery after a contraction phase at the start of the semester, reporting a revenue of 91 million MAD, down from 128 million MAD in the first half of 2024. This decline was mitigated by the resumption of execution on several projects, particularly in irrigation. Additionally, the Projects BU obtained new qualifications from the Ministry of Equipment and Water during the semester, allowing the Group to deploy its expertise in large-scale projects related to drinking water and wastewater treatment. The awarding of new public contracts in Berrechid and Tadla, totaling 29 million MAD, strengthens the Group's order book and suggests a gradual improvement in activity during the second half. In the words of Mr. Youssef Moamah, CEO of CMGP Group: "In the first half of 2025, CMGP Group continued its development in a contrasting context. The strengthening of our industrial capacities and the dynamics of our activities reinforce the relevance of our integrated model. The Group's inclusion in the MSCI Frontier Markets index marks an important institutional milestone, enhancing our visibility and investor confidence. Supported by our One-Stop-Shop model, we are determined to accelerate in high-value-added segments and support the transformation of agriculture in Morocco and Africa." Looking ahead, CMGP Group continues its expansion by developing its upstream industrial capacities, ensuring the reliability of its business model, and maintaining a solid financial structure. These foundations enable the Group to strengthen its position in irrigation, fertilizers, and crop protection, while accelerating its deployment in higher value-added lines. With this momentum, the Group is poised to seize external growth opportunities to consolidate its strategic positioning across all its activities.