BRVM-Listed Sode Cote d'Ivoire First-Quarter Profit Rises 17%
TLDR
- Société de Distribution d'Eau de la Côte d'Ivoire (BRVM: SDCC) reported first-quarter net profit of 604 million XOF ($1.05 million), up 17% from 504 million XOF ($873,000) a year earlier
- Revenue rose 8% to 41.64 billion XOF ($72.1 million) from 38.25 billion XOF ($66.2 million) in the same period last year
- The revenue growth stemmed from increased water billing volumes, fraud prevention efforts, new production facilities coming online, and improved billing ratios
Société de Distribution d'Eau de la Côte d'Ivoire (BRVM: SDCC) reported first-quarter net profit of 604 million XOF ($1.05 million), up 17% from 504 million XOF ($873,000) a year earlier. Revenue rose 8% to 41.64 billion XOF ($72.1 million) from 38.25 billion XOF ($66.2 million) in the same period last year, the Ivorian water utility said in a statement.
Operating income fell 27% to 1.09 billion XOF ($1.9 million), reflecting higher direct operating costs due to inflation and increased energy expenses. Financial loss widened 33% to 179 million XOF ($310,000). Income from ordinary activities decreased 39% to 915 million XOF ($1.6 million), while tax expenses dropped significantly by 162% to 237 million XOF ($410,000), boosting the bottom line.
The revenue growth stemmed from increased water billing volumes, fraud prevention efforts, new production facilities coming online, and improved billing ratios across both Abidjan and interior regions. SODECI plans to continue focusing on collections, billing reliability, and cost control to strengthen performance in the second quarter.
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Key Takeaways
SODECI's mixed Q1 results highlight both opportunities and challenges in Africa's water utility sector. The company's ability to grow revenue despite economic pressures demonstrates the essential nature of water services and successful execution of its anti-fraud campaign. The operating income decline reflects persistent sector challenges, as utilities across the continent struggle with rising energy costs and inflation impacts on treatment chemicals. SODECI faces these pressures while maintaining infrastructure for Côte d'Ivoire's 27 million citizens. The significant tax expense reduction likely stems from government support measures designed to strengthen utility financial sustainability amid rising operational costs. Similar approaches are emerging across West Africa as governments recognize water security as critical infrastructure. SODECI's focus on billing improvements targets a common challenge for African water utilities, which typically face non-revenue water rates of 30-40%. The company's progress on this metric suggests operational improvements that could yield long-term benefits beyond immediate financial results.
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