EXECUTIVE SUMMARY
During FY 2021, listed companies annual results were relatively expected by investors, after a less favorable year 2020 marked by the negative repercussions of the health crisis.
In a context of economic recovery, through a rebound of +7.3% in GDP in 2021, listed companies return to their pre-health crisis normative profit levels. Alongside our analysis of the annual achievements of listed companies, we come out with 4 key messages :
- The reported earning growth of the Equity market settled at +65.1% in 2021 after a decline of -34.4% a year earlier. This corresponds to aggregate profits of MAD 28.9 Bn. Restated from donations to the Covid-19 fund, the recurring earning power rose by +36.0% during the same period ;
- The Banking sector is the main contributor to the recovery of the market's earning power through an increase in its aggregate net income of MAD +4.9 Bn. It should be noted that the contribution of the Real Estate sector is reflected in a return to equilibrium, after a significant loss of MAD -1.3 Bn in 2020 ;
- Listed companies are maintaining their effort to remunerate Shareholders through an increase in the aggregate amount of the dividend by nearly 20% during 2021. For the first time since 2019, the market is back with a level of dividend above MAD 20 Bn. In more detail, 29 listed companies representing 69% of market capitalization have announced a significant increase in their 2021 DPS
- The Equity market's dividend yield stands at 3.2% for 2021 against 2.1% for the TB-5 year benchmark rate, i.e. a spread of 110 BPS. The NIT, Financing and Cement sectors stand out through respective D/Y of 5.6%, 5.0% and 4.1%.
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