OCP Group has achieved a turnover of 84.3 billion dirhams in 2021, up by 50% compared to 2020, thanks to sustained demand in the main importing regions and higher prices for all product categories.
The rock's turnover increased by 32% year-on-year, mainly due to improved prices, which followed the upward trend in fertilizer prices, and increased export volumes, mainly to Europe and Asia, OCP said in a statement on its results to the end of December 2021.
The increase in sales prices has led to a rise in turnover of phosphoric acid and phosphate fertilizers of respectively 51% and 57% compared to the previous year in local currency, explained the Group.
It added that this performance was partially impacted by the drop in acid exports to Asia, particularly India, where the product mix has changed, and by the drop in exported fertilizer volumes. The latter is mainly the result of OCP's low inventory levels at the beginning of 2021, given the record production and export volumes achieved in 2020, lower demand in Europe and the delay in government subsidies in India.
The Group's operational efficiency, as well as higher selling prices, largely offset higher sulfur and ammonia costs, resulting in a 52% increase in gross margin in local currency, to 55.218 billion dirhams from MAD 36.426 billion a year earlier.
EBITDA recorded the most significant growth in more than a decade, rising 94% year-on-year to 36.27 billion dirhams against 18.65 billion dirhams in 2020. The increase in sales, together with the Group's operational efficiency, resulted in a record EBITDA margin of 43%.
The operating result amounted to 25.8 billion dirhams, significantly higher than the MAD 6.26 bln achieved last year. The operating result at the end of December 2020 included a non-recurring charge of MAD 3 billion, relating to OCP's contribution to the Covid-19 Special National Fund in the second quarter of 2020.
For its part, the net financial debt amounted to 46.07 billion dirhams with a leverage ratio of 1.24 as of December 31, 2021.
