CMGP: Revenue Up 0.3% in the First Half of 2025

In the first half of 2025, CMGP Group achieved a consolidated revenue of 1,120 million MAD, marking a modest increase of 0.3% compared to the same period in 2024. For the second quarter alone, revenue reached 579 million MAD, also up by 0.3%. This overall performance demonstrates the resilience of the Group's integrated model, supported by the commercial dynamics of the Retail Business Unit, the strengthening of industrial capabilities, and ongoing international growth. However, the Projects Business Unit experienced a decline, although signs of recovery are emerging for the entire year. The Retail Business Unit continued its growth trajectory, reporting a 7.1% increase in revenue compared to the first half of 2024, reaching 951 million MAD. This growth is driven by positive dynamics across all segments of agro-supply, particularly in fertilizers, benefiting from the ramp-up of new production units in Jorf Lasfar and Drarga. The solar segment is also expanding, supported by increasing demand for equipment, despite a backdrop of falling prices. The Industrial Business Unit recorded a consolidated growth of 9.3% for the semester, driven by increased production volumes. This performance is bolstered by intensified activities at the Jorf site, dedicated to solid fertilizers, and the startup of the Drarga site in Q2 2025, which specializes in soluble fertilizers, effectively meeting the growing needs of the Retail Business Unit. However, intergroup sales declined to 49 million MAD from 77 million MAD a year earlier, attributed to a slowdown in the first quarter. The second quarter saw stabilization of intergroup activity at 28 million MAD in a reshaping market environment. The adaptability of the Business Unit to sector transformations is expected to facilitate a gradual return to growth in the second half of the year. The International Business Unit confirmed its growing role in the Group's development, with revenue of 29 million MAD, up 20.4% compared to the first half of 2024. This segment benefits from strong momentum across several African markets. Agro-supply sales are notably increasing in Ghana and Côte d'Ivoire, while irrigation projects are gaining intensity in Mauritania and for export. These performances help offset the slowdown observed in Senegal's irrigation segment during the second quarter. After a marked contraction in activity during the first quarter, the Projects Business Unit is beginning to recover gradually. Revenue for the semester stood at 91 million MAD, down 29.2% from the previous year. However, this decline is mitigated by improved performance in the second quarter, driven by the resumption of work on several projects, particularly in irrigation. The order book has strengthened, supported by the revival of public tenders and the awarding of new projects in Berrechid and Tadla, totaling 29 million MAD. These factors suggest a more sustained recovery in activity for the second half of the year. Investments made in the first half of 2025 amounted to 22 million MAD, primarily focused on expanding the Group's industrial capacities, particularly in fertilizers and plastics. This level is consistent with equipment investments made during the same period in 2024, excluding participation in Agrosem and the integration of new subsidiaries into the consolidation perimeter, namely Marasset and Process Asset. Ongoing efforts to optimize working capital have led to a significant improvement in the financial situation, with a net cash surplus of 26 million MAD at the end of June 2025, compared to net debt of 151 million MAD at the end of December 2024. As of the end of June 2025, there were no changes in the consolidation perimeter compared to the first quarter of 2025. Looking ahead, CMGP Group continues its growth trajectory by leveraging the strengthening of its industrial capabilities, the robustness of its integrated model, and an enhanced financial situation. The Group aims to consolidate its leadership in its historical sectors, particularly irrigation, fertilizers, and phytosanitary products, while accelerating its development in higher value-added segments. In this dynamic, CMGP Group is actively positioning itself to seize new opportunities for external growth, aiming for controlled and sustainable expansion in its strategic markets.