Despite the effects of the health crisis, which continue to have an impact on consumer behaviour and the commercial dynamics of the distribution channels, the SAH Group is showing resilience.

In the first half of 2021, cumulative consolidated revenues reached 346.5 million Tunisian Dinars, an increase of 4% compared to the first half of 2020. Sales in the second quarter increased by 1.8% compared to the second quarter of 2020.

Growth was mainly driven by Azur Papier, which achieved a strong increase (+52.1%) following the entry into production of the second machine in March 2021, SAH Côte d'Ivoire (+23.8%), Azur Détergent (+7.4%), consolidated by the entry into production of SAH Sénégal at the end of 2020.

SAH Tunisia reports a growth of 1%, as a result of its policy of reducing local recovery times and its development strategy in Libya, its main export market (please refer to the SAH Tunisia analysis).

While the trend was generally in line with the established targets, the turnover of the subsidiaries in Libya and Algeria slowed down the growth of the consolidated revenues. In addition to the impact of the spread of the COVID-19 pandemic, the Libyan subsidiary has been strongly affected by the variation in exchange rates and the depreciation of the local currency against the Tunisian dinar since the beginning of the year, and the Algerian subsidiary, whose raw material imports remain disturbed by the closure of the borders.

The breakdown of consolidated revenues by subsidiary shows that SAH Tunisia contributes up to 57%, followed by Azur Détergent with 19% and Azur papier with 14%. The group will soon communicate a more detailed analysis of the consolidated indicators including the margins achieved at the end of June 2021.

The outlook for 2021

The Group maintains its objectives for the year 2021 focused on consolidating its local and regional market share, exploring new export markets, and diversifying its product range through the development of its subsidiaries' activities:

• Tunisia : The entry into production of Azur Papier's second line in March 2021 and its impact on revenue growth, especially in the second half of the year.
• Algeria :The new paper towel and industrial paper machine is scheduled to go into production in the fourth quarter of 2021.
• Libya: An additional paper towel line and a new baby nappy line are expected to start production in the first quarter of 2022.
• Senegal: The production machine for baby nappies is currently being tested and the start-up of the production machine for napkins is planned for the end of July 2021.
• Côte d’Ivoire : The installation of the paper towel production machine is scheduled for the first quarter of 2022. In the absence of visibility on how the epidemic will develop and when it will end, global supply and demand conditions will continue to be volatile and unpredictable for the remainder of the year, with a likely impact on performance given the additional health, manufacturing, and logistics costs. However, the SAH Group remains confident thanks to the strength of its brands, the solidity of its balance sheet and the resilience of its value chain.