São Paulo – Morocco’s fertilizer manufacturing conglomerate the OCP Group saw its sales to Brazil go up this year. The information was made public in the company’s Q1 financial report, according to which total revenue climbed 20% year-on-year.
OCP grossed MAD 12.5 billion – or USD 2.8 billion – in Q1 2019, up from MAD 10.4 billion (USD 1.13 billion) in Q1 2018, Morocco’s official news outlet Maghreb Arabe Presse (MAP).
The OCP Group said market conditions were in line with its expectations, with prices higher than in Q1 2018, but lower than towards the end of the year, coupled with high inventory levels and lower raw material prices.
“Demand from India remained somewhat stronger than anticipated despite high inventory levels; European demand recovered from last year’s lows, and there was a modest up-tick in imports to Brazil,” OCP said in its report. The company also said adverse weather conditions in North America took a toll during the spring planting season, thereby keeping inventories high.
OCP reported that its Q1 revenue growth was broad-based, driven by a combination of higher volumes and improved pricing compared to last year’s first quarter, although prices trended significantly lower on a sequential basis.
The conglomerate reported EBITDA at MAD 4.3 billion (USD 456 million) in Q1, up 72% from MAD 2.5 billion (USD 273 million) in Q1 2018. Operating profit was MAD 2.5 million (USD 265 million), up more than 100% from MAD 1.15 billion (USD 126 million) in Q1 2018.
OCP informs that it is the world’s leading phosphate producer and one of the major players in the industry. It has access to the biggest phosphate rock reserves in the world. Established in 1920, it currently employs 21,000 people.
Translated by Gabriel Pomerancblum
