Mutandis: Revenue Declines by 7% in the First Half of 2025

Mutandis has reported a slight decline in consolidated revenue, totaling 902 million dirhams, which represents a 7% decrease compared to the first half of 2024. This downturn is primarily due to the closure of the Ain Ifrane factory for three months due to industrial breakdowns and adverse currency effects in the second quarter of 2025, which impacted revenue conversion to dollars by 8%. The company anticipates improved performance in the second half of the year, driven by the normalization of water supplies and the commencement of hydrolysates production. In the second quarter alone, revenue fell by 9% to 450 million dirhams. In the hygiene segment, revenue reached 373 million dirhams, marking a 2% increase compared to the first half of 2024. This growth was supported by a notable 9% rise in volumes, primarily driven by liquid detergents. The revenue increase is attributed to a shift in product mix towards more liquid formats and larger packaging sizes. The new liquid detergent factory enables the group to adapt to the market's transition from powder to liquid detergents and from smaller to larger formats. In the beverages sector, revenue dropped to 107 million dirhams, a 39% decrease compared to the first half of 2024. The Ain Ifrane factory operated for only three months during the semester, from April to June, and resumed operations at 65%-70% of its normal capacity due to machinery breakdowns experienced at the end of 2024. A new production line is expected to be operational by September, aiming for full capacity by the fourth quarter of 2025. Fruit-based beverages had a strong start to the semester; however, March, which coincided with Ramadan this year, was negatively affected by rainfall and lower temperatures. Overall, beverage volumes declined by 41% during the semester. In the seafood segment, revenue remained stable at 438 million dirhams compared to the first half of 2024. Season's revenue increased by 5% (11% in dollars), driven by a 7% rise in volumes. Marine's performance in Morocco saw a significant increase, with volume growth of 60% and a 51% rise in revenue. However, deliveries to Africa and Europe, particularly to Anny, decreased by 10 million dirhams compared to the first half of 2024 due to stock shortages at the beginning of the year. The currency effect on revenue in dollars was unfavorable, resulting in a 5% decline for the semester. The hydrolysates factory in Dakhla has been completed and is awaiting approval, with exports expected to commence soon. Regarding capital expenditures and net debt, investments as of June 30, 2025, amounted to 63 million dirhams, while net bank and bond debt stood at 938 million dirhams, compared to 850 million dirhams on December 31, 2024.