Carthage Cement’s financial statements for the year ending December 31, 2022 show a positive equity of 203.138 million dinars (MD), including a profit for the year of 35.650 MD.
According to the company’s activity report, published by the Tunis Stock Exchange, the cement plant has accumulated losses of 295 MD as of December 31, 2022, taking into account the profit for the year ended December 31, 2022.
These losses are mainly due to the delay in starting production at the cement plant, which cost more than the initial investment planned for the plant and required additional short-term credits and bank loans to complete the financing plan.
These losses are also the result of the high cost of subcontracting cement production, the difficult economic situation in Tunisia in recent years and the overcapacity of cement production in Tunisia, which has led to a significant fall in selling prices on the local market.
As a reminder, since 2019 the company has undertaken a series of actions to address this difficult situation, including a financial restructuring that resulted in a capital increase of 171 MD, an operational restructuring through a voluntary redundancy plan that contributed to the reduction of the company’s workforce, and the termination of the NLS contract and the resumption of clinker production by the company’s own means.
On the basis of these measures, the company’s management has drawn up a business plan for the period 2023-2028 which it believes will enable it to meet its commitments.
It should be noted that the annual accounts of Carthage Cement will be submitted for approval to the Ordinary General Meeting to be held on 26 June 2023.
