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Forafric Global (AFRI) investor relations material

Forafric Global Q4 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2024 earnings summary29 Apr, 2025

Executive summary

  • Forafric Global PLC is a leading wheat milling and food processing company in Morocco and West Africa, with operations spanning flour, semolina, pasta, and couscous, and exports to 45 countries.

  • In 2024, the company focused on a Morocco and soft wheat-centric strategy, initiating divestitures of non-core assets and logistics businesses to strengthen its balance sheet and improve working capital.

  • The company faces substantial risks, including commodity price volatility, foreign exchange fluctuations, supply chain dependencies, and significant liquidity concerns that raise doubt about its ability to continue as a going concern.

Financial highlights

  • Revenues from continuing operations for 2024 were $274.2M, down 9.2% from $302.0M in 2023, mainly due to lower crushed volumes in Morocco.

  • Gross profit for 2024 was $27.3M, a 4.2% decrease year-over-year; operating loss from continuing operations was $(7.8)M versus a $1.2M profit in 2023.

  • Net loss attributable to the company for 2024 was $(24.3)M, compared to $(12.7)M in 2023; basic and diluted loss per share was $(0.87) in 2024.

  • Cash and cash equivalents at year-end 2024 were $12.2M, down from $24.0M in 2023, primarily due to debt repayment.

  • Inventories and trade receivables both declined by over 45% year-over-year, reflecting lower sales and operational scale-back.

Outlook and guidance

  • Management is pursuing additional financing, cost reductions, and expects to close asset sales totaling $29M by May 2025 to address liquidity needs.

  • The company’s ability to continue as a going concern depends on successful execution of these plans; otherwise, it may not be able to meet obligations.

How do planned asset sales impact going concern?
Assess Millcorp supply agreement risk post-strategy
Reconcile Morocco market share leadership claim
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Frequently asked questions

Forafric Global PLC is a company engaged in the agribusiness sector, focusing on the purchase, storage, transport, processing, and sale of agricultural commodities. The company's primary products include wheat flours, semolina, and secondary processed items such as pasta and couscous, marketed under the brand names TRIA and MayMouna. Forafric serves wholesale food manufacturers and distributors, exporting its products to over 45 countries across Europe, Asia, Africa, and the Middle East. The company operates in various segments, including soft wheat, durum wheat, and couscous and pasta production. Forafric Global PLC is headquartered in Gibraltar, and its shares are listed on the NASDAQ.

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