After a year 2023 marked by a significant drop in sales and profits, African Rubber Plantation Society (SAPH) made a strong comeback in 2024. A major player in the Ivory Coast rubber industry, SAPH has announced an increase in net profit for the third quarter of 2024, reaching over $16.6 million (10 billion FCFA), up 151.5% on the same period in 2023. This result, the fruit of favorable market conditions and optimized management, confirms the company’s solidity in the face of the sector’s challenges.
Sales of $309 million
With strong sales growth, according to the company’s activity report, SAPH’s sales came to $309 million (FCFA 186.3 billion) in the third quarter, up 30.6% on 2023. This performance resulted from a 13.07% increase in volumes sold, combined with a 15.52% rise in the average selling price of rubber.
This dynamic reflects the recovery in global demand for rubber, after a year 2023 marked by economic uncertainties and price declines on the international market,
the company points out.
Optimized management in the face of inflationary pressures
SAPH’s income from ordinary activities reached $22 million (FCFA 13.37 billion) in the third quarter, recording an impressive 149.5% year-on-year increase. This performance is explained by rigorous cost management, enabling the company to capitalize on rising rubber prices. According to analysts,
SAPH was able to take advantage of rising prices while keeping operating costs under control, despite a high inflationary environment which weighed on energy and wage costs.
Fiscal 2024 therefore looks set to be one of SAPH’s most promising years. However, the company will have to face major challenges to consolidate its gains, notably inflationary pressures and international market fluctuations. Despite these obstacles, SAPH is positioned to play a major role in the recovery of the rubber sector in Ivory Coast and West Africa, a market in the throes of change.
By pursuing its strategy of cost control and capitalizing on the recovery in rubber prices, the company is gearing up to strengthen its leadership position in 2024, while committing itself to meeting future economic challenges.