SNEP Increases Losses in the First Half of 2025

At the end of the first half of 2025, SNEP recorded a revenue of 359.8 million MAD, marking a significant increase of 40.4% compared to the same period last year. This performance reflects a strong commercial dynamic, primarily driven by increased sales volumes of vinyl products. It also indicates the gradual ramp-up of new production units. Meanwhile, the Electrolysis segment showed stable revenue, anticipating the expected growth of the electric battery ecosystem. However, this revenue improvement occurs in a particularly constrained economic environment. The international PVC market continues to experience persistent overcapacity, leading to ongoing downward pressure on prices. On the national front, massive PVC imports, often at extremely low tariff conditions, have intensified competition and limited revenue growth, directly impacting margins. Additionally, the finalization of stabilizing new industrial installations has resulted in temporary additional costs, essential for securing processes and ensuring the reliability of production tools. In this context, the operating result stands at -93.8 million MAD, while the net result is -108.6 million MAD as of the end of June 2025, nearly doubling losses compared to the first half of 2024. The consolidated net result recorded is -91 million MAD. Looking ahead, SNEP remains attentive to market developments and is committed to restoring margin levels in line with its fundamentals. To navigate this challenging yet transitional environment, the company is implementing a range of measures that include continuous improvement of operational efficiency, commercial rigor, and resource optimization. These efforts aim to sustainably restore profitability and position the company on a solid growth trajectory, benefiting all its clients, partners, and stakeholders.