The OCP Group recorded a turnover of nearly 25.33 billion dirhams (MMDH) in the first quarter of 2022, up 77% compared to that achieved a year earlier.
In a press release on its results for Q1-2022, OCP specifies that this performance was driven by the increase in selling prices in all product categories, which more than offset the drop in sales volumes.
And to add that “the record results posted by OCP in 2021 continued in the first quarter of 2022, driven by solid market conditions and continued operational efficiency. The Russian-Ukrainian conflict intensified the tense situation in terms of supply/demand balance in the phosphate market and led to a further rise in prices, which was also supported by the increase in raw material costs, in particular l ‘ammonia and sulphur’.
The gross margin stood at 15.888 billion dirhams (1.68 billion dollars), against 9.267 billion dirhams (1.03 billion dollars) a year earlier, the increase in selling prices having neutralized the impact of rising input costs, mainly sulfur and ammonia, the statement said, noting that the gross margin rate reached 63% compared to 65% in the first quarter of 2021.
EBITDA (Editor’s note: Earnings Before Interest, Taxes, Depreciation, and Amortization) recorded, for its part, a growth of 117% from one year to the next to stand at 11.603 billion dirhams (1.23 billion dirhams). dollars), against 5.336 billion dirhams (596 million dollars) a year earlier. The increase in revenue and the operational efficiency of the Group resulted in a record EBITDA margin of 46%, compared to 37% in the first quarter of 2021.
With regard to investment expenditure, it reached 2.988 billion dirhams (315 million dollars) in the first quarter of 2022, compared to 1.750 billion dirhams (196 million dollars) disbursed during the same period of 2021.
In addition, the press release indicates that the solid performance posted by OCP in the first quarter of this year points to a year of significant growth and supports the Group’s positive outlook for 2022, noting that the rise in prices should continue on the year, supported by solid market conditions, reflecting strong global demand, a tight supply situation and rising commodity prices.
The document also states that “OCP plans to increase its production volumes by approximately 10% in 2022 in order to meet demand in high-growth markets where the Group continues to strengthen its position as world leader. Additionally, OCP continues to invest in environmental and social programs to maintain its positive impact on global food security.”