For the 2019 financial year, the Société de distribution d'eau de Côte d'Ivoire (SODECI) maintains its logic of
generous distribution of dividends. In its financial communication, it plans to remunerate its
shareholders to the tune of 2.9 billion FCFA, or almost 99% of its net profit for the period. For
each shareholder, this will make a gross dividend before taxes of 325 FCFA.
For current investors, this represents a net return per share of up to 11% of the current market value. This return on invested capital remains comfortable, compared to the
average trend in returns on the Abidjan Regional Stock Exchange (BRVM) which
was 10.1% on Friday, May 15, 2020. It is also better than interest on bonds
waemu governments that are on average only 6% on an annual basis and not
cumulative.
For the various shareholders who own up to 39.15% of the company's capital, this is a new
positive and encouraging, especially since the 2019 activity was marked by a slight increase in net profit
accountant. It should also be noted that over the last 7 years, the company's turnover has been one
increase of 25.7%. Finally, over the last three years, the return on equity (resources
owned by shareholders) is around 20.5%.
The question today is whether this logic of generous dividends could continue. For
the first time since 2011, its turnover fell in 2019. The net result in very slight increase is
makes other products received in addition to its ordinary activity, but which have not yet been specified in
financial communications for fiscal year 2019.
Effective profitability that is progressing little, but not for all shareholders
In an analysis by Ivorian stock market analyst Brice Kouaou, promoter of the Ecole de la Bourse, SODECI
while still distributing all of its net profit has not managed to get it off the ground as much as the
increase in its turnover. He also believes that there is even a risk that the next periods
are complex, especially if the project to liberalize water distribution is confirmed in Côte
d'Ivoire.
The only shareholder who has really benefited from SODECI's good sales is ERANOVE. This company
specialized in the management of water and energy utilities in Africa and is owned by
the French insurer Axa and the private equity firm Emerging Capital Partners (ECP) collect each year
a remuneration for management expenses that represents 3.9% of the previous year's turnover.
It received 5.6 billion CFA francs over the years 2015 to 2017. The figures for 2018 and 2019 were not
press releases, but we can estimate the gain due at 7.45 billion FCFA. To this is added 7.9 billion FCFA of
gross dividends received since 2014 in respect of its 46.07 stake in the capital of SODECI.
In the first quarter of 2020, the company's revenue was up 26%, thanks to a
increase in the customer base. For the second quarter, it expects sustained revenue
thanks to an exceptional payment of arrears obtained from the Ivorian government. However, as of March 31, 2020,
SODECI saw a net profit down 4% compared to the first quarter of 2019.