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The Moroccan Economy in Brief: Tuesday, November 24, 2020

MAD 27.1 billion in credits granted since the beginning of the crisis:
Strong mobilization of Attijariwafa bank in favor of the private sector facing the crisis. Until November 15, 2020, the group has accompanied and supported more than 32,900 Moroccan companies, mostly SMEs, through the distribution of MAD 27.1 billion in additional credit since the beginning of the crisis. Among other things, it has granted MAD 10 billion in "Damane Relance" loans benefiting 8,300 SMEs. Similarly, Attijariwafa bank has distributed MAD 6.2 billion of "Damane Oxygen" loans benefiting 18,200 TPMEs, reaching nearly 35% market share. And that's not all. The group has financed 5,595 young entrepreneurs and project holders for an amount of MAD 1 billion, as part of the "Intelaka" initiative.

Promopharm recorded a double-digit increase in sales in the third quarter:
Promopharm's revenues amounted to MAD 134.27 million in the third quarter of 2020, up 10.6% compared to the same period a year earlier. This increase is mainly due to increased public demand for the company's various products, Promopharm explained in a press release on its financial results. Regarding the level of indebtedness, it remained stable compared to last year, the company noted, adding that short-term financing debts and overdrafts increased from MAD 1.36 million in 2019 to MAD 927,640 on September 30, 2020.

Decrease in debt at Colorado:
Colorado's net debt decreased by 28.4% to MAD 44.6 million at the end of September 2020, "following the repayment of current medium-term loans and the reduction in short-term financing," said the company, which unveiled its results at the end of September. Long-term debt amounted to MAD 26.6 million, a level considered "low in relation to the company's shareholders' equity (8%)". During the first nine months of the year, Colorado's revenues totaled MAD 331 million, down 10.3% year-on-year.


Construction: Cement sales decreased by 12.5% at the end of October:
Cement sales decreased by 12.5% during the first ten months of 2020 compared to an increase of 3.6% one year earlier. But this decline remains less significant compared to the end of May last year when it was -25.1%. The decline in sales has eased since last June, coinciding with the partial deconfinement. As regards financing operations in the real estate sector, growth in housing loans recorded a slight rebound from June 2020, reaching +2.2% at the end of September, after +1.1% at the end of May and +4.5% a year ago.


OCP Group optimistic for fiscal year 2020 despite the pandemic:
Despite the continuing pandemic, OCP Group's outlook for the year 2020 remains favorable. "Thus, subject to the absence of significant future impacts of the Covid-19 pandemic, the year 2020 presents positive projections for the end of the fiscal year," the Group states in a press release. In the meantime, the Group's operating results at the end of September are considered solid. In spite of the pandemic context and a drop in international prices, the Group also recorded a significant increase in margins. "This performance is based on the Group's competitive advantages, its extensive international presence and its industrial and commercial flexibility," OCP reaffirms.