Côte d’Ivoire : SAPH reports FCFA1.16bn post-tax profit for 2016
(Ecofin Agency) - After two consecutive years marked by negative results, the Sociéte Africaine de Plantations d’Hévéas of Cote d’Ivoire (SAPH CI) is the back on track. Indeed, the company ended the 2016 financial year with a post-tax profit of FCFA1.16 billion. This was reported by the Agence de Presse Africaine (APA).
The firm’s turnover thus soared 14.9% as compared to 2015, standing at FCFA112.92 billion. Meanwhile, net operating profit surged by 46% to FCFA10.97 billion.
The increase is also recorded in the operating result. It stood at CFA3.91 billion in 2016, against 645.73 million in 2015.
SAPH positive results could be explained by the rise of prices of rubber on the global market, following a 35% slump between 2013 and 2015.
Indeed, according to World Bank’s publication in the Commodities Markets Outlook quarterly report released in January 2017, reduction of supply in global market by major rubber producers (Thailand, Indonesia and Malaysia) paired to a strong demand from China, pushed the price of the commodity to $1.92 per kg from $1.57/kg.
According to the World Bank, the growth should continue in 2017 with average price at $2.10/kg against $1.61 in 2016, still due to lower supply and a stronger demand from China.
Let’s recall that SAPH is the leader rubber producer in Cote d’Ivoire with a 70% market share. Overall, the nation is the number one in Africa and 7th worldwide in the natural rubber sub-sector.