The turnover of Sonasid, a Moroccan producer of concrete reinforcing bars and wire rod for Building and public works (BTP) and industry, came to nearly 1.18 billion dirhams (MMDH) at the end of June 2020, down 34% compared to the same period in 2019.
This decrease reflects a 27% decline in sales volumes and an unfavorable price effect, explains Sonasid in a press release on its indicators in Q2-2020, noting that this contraction in turnover had a significant impact on results as of 30 June 2020.
In addition, Sonasid indicates that the first signs of a recovery in demand were observed in June with a sales volume in clear growth compared to previous months, adding that the industrial performance recorded at the end of June 2020 “confirms the strengthening of operational fundamentals of the company, despite the drop in production volumes ”.
At the end of June, the investments made amounted to 6 million dirhams (MDH) against 15 million dirhams at the end of June 2019, notes the same source, specifying that the sanitary conditions of the second quarter led to the postponement of the investments initially programmed.
The press release also indicates that the actions to optimize working capital requirements (WCR) carried out during the second quarter allowed a good improvement in the cash situation of the company with a net debt of -747 MDH at the end of June 2020 against -583 MDH at the end of 2019.