BRVM-Listed Sitab More Than Triples Annual Net Income
TLDR
- Société Ivoirienne des Tabacs SA (BRVM: STBC) reported net income of 44.73 billion CFA francs ($75.9 million) for fiscal year 2024
- Revenue rose 26% to 216.13 billion CFA francs ($366.8 million) from 170.83 billion CFA francs
- Operating income grew to 55.01 billion CFA francs ($93.4 million) from 16.26 billion CFA francs, reflecting improved operational efficiency
Société Ivoirienne des Tabacs SA (BRVM: STBC), Ivory Coast's tobacco manufacturer, reported net income of 44.73 billion CFA francs ($75.9 million) for fiscal year 2024, more than tripling from 12.4 billion CFA francs in 2023. Revenue rose 26% to 216.13 billion CFA francs ($366.8 million) from 170.83 billion CFA francs. Sales of merchandise increased to 213.79 billion CFA francs ($363 million) from 169.39 billion CFA francs.
The company's cash position strengthened to 48.16 billion CFA francs ($81.8 million) from 9.05 billion CFA francs at year-end. SITAB's board will present the results for shareholder approval at the annual general meeting. The company has 45.45 billion CFA francs ($77.2 million) available for distribution.
The tobacco manufacturer maintained solid capital reserves with total equity of 46.89 billion CFA francs ($79.6 million). Operating income grew to 55.01 billion CFA francs ($93.4 million) from 16.26 billion CFA francs, reflecting improved operational efficiency despite rising service costs.
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Key Takeaways
Sitab's performance contrasts with the challenges facing global tobacco companies. While major international players have struggled with declining smoking rates in developed markets, SITAB achieved substantial growth in Ivory Coast. The company operates in West Africa, where tobacco regulation remains less stringent than in Western markets. According to industry data, smoking prevalence in sub-Saharan Africa continues to rise, particularly among young adults. SITAB's results reflect both market expansion and effective distribution. The company's focus on the Ivorian market shields it from currency fluctuations affecting multinational tobacco firms operating across diverse economies. Analysis suggests SITAB's cash position provides flexibility for potential acquisitions or dividend increases in coming years, pending shareholder approval at the upcoming AGM.
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