EXECUTIVE SUMMARY
In a context highlighted by record inflation levels both in Morocco and abroad, listed companies continue to post a sustained growth in their revenue during Q2-22.
As of today, 68 listed companies contributing to more than 99% of the capitalization of the Equity market have released their operational achievements at the end of the second quarter of 2022.
According to listed companies¡¦ press releases and based on our own analysis, we note four major findings :
- As expected, listed companies recorded an acceleration in their sales growth in Q2-22 of +15.9% after +14.8% in Q1-22. The price effect was clearly reflected in the sectors whose Demand was globally resilient during this 2nd quarter, such as Energy, Agribusiness and Mining ;
- The drop in Cement consumption by -10.0% during Q2-22 and the decline in equipment loans by -2.6% at the end of June 2022 are early signs of a more visible deceleration in Demand during the coming quarters. This trend would affect more sectors that are not able to fully pass on higher input prices to their customers ;
- Based on quarterly press releases, listed companies generally show good control of their debt level through an estimated drop of -8.0%. However, we remain vigilant towards the building material sector during this H2-22 since its financing needs could increase significantly in an inflationary context ;
- Two main indicators should be monitored during this second half of 2022. These are, on the one hand, the dynamics of domestic Demand and, on the other hand, the margin levels of listed companies in an inflationary context. The evolution of these indicators would, in our opinion, impact the issuers' pay out policy and consequently the future orientation of the MASI index.
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