Forafric Global (AFRI) Q4 2024 earnings summary

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.