EXECUTIVE SUMMARY
Following the release of FY 2022 annual results, we note 70 listed companies which have published their annual achievements. These took place in an unfavorable economic context highlighted by the acceleration of inflationary pressures, a sharp slowdown in economic growth, continued monetary tightening by BAM and the upward turnaround in bond rates.
At the end of our analysis, we come out with five messages:
- The Equity market recorded a recurring profit growth of +8.2% above MAD 31 Bn. This develop-ment should be put into perspective insofar as it was driven by the Banking & Mining sectors, which are evolving against the market trend (see AGR House View January 2023). With the ex-ception of these two sectors, the market's recurring profits fell by -3.6%;
- Banking & Mining are the main contributors to the evolution of the recurring earnings of the Equity market. These two sectors contributed up to MAD +3,020 Mn to the market profits varia-tion. On the other hand, the cement sector's profits show a drop of MAD -917 Mn, contributing negatively to the earnings evolution. The latter suffered from a drop in Demand combined with the surge in international input prices;
- At constant scope, and excluding listed companies which have not yet announced their 2022 DPS, the market's aggregate dividends show a -15% drop compared to 2021. According to our computations, these amount to MAD 15.4 Bn including MAD 57.5 Mn of extraordinary dividends. This is therefore a payout of 63.4% on a consolidated basis;
- For the first time since 2013, we are witnessing a negative spread between the return of the Equity market and that of the bond market. In fact, the D/Y 2022 comes out at 3.3% against a 5-year TB of 4.1% i.e. -78 BPS;
- In the end, the D/Y of the Equity market is mainly supported by a correction effect of listed companies rather than by an improvement in the payout levels.
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