Cote d'Ivoire: Ivory Coast Rubber Producer SOGB Reports 149 Percent Profit Rise

Aman ADO/Wikimedia Commons
Abidjan, the capital of Ivory Coast (file image)
7 May 2025
Daba Finance (Abidjan)

TLDR

  • Société des Caoutchoucs de Grand-Béréby (BRVM: SOGC), Ivory Coast's major rubber and palm oil producer, reported net profit of 13.11 billion XOF ($22.7 million) for 2024
  • Revenue from manufactured products rose 22% to 87.25 billion XOF ($151.1 million), driven by higher rubber prices (+29%) and palm kernel oil prices (+14%)
  • The board proposed dividends of 12.97 billion XOF ($22.5 million), nearly triple the 4.97 billion XOF ($8.6 million) paid last year

Société des Caoutchoucs de Grand-Béréby (BRVM: SOGC), Ivory Coast's major rubber and palm oil producer, reported net profit of 13.11 billion XOF ($22.7 million) for 2024, a 149% increase from 5.27 billion XOF ($9.1 million) in 2023. Revenue from manufactured products rose 22% to 87.25 billion XOF ($151.1 million), driven by higher rubber prices (+29%) and palm kernel oil prices (+14%), the company said. Sales volumes increased for rubber (+2%), palm oil (+1%), and palm kernel oil (+40%).

Raw material costs climbed 25% to 24.71 billion XOF ($42.8 million), mainly due to a 30% price increase for coagulum purchased from village planters. Gross operating surplus grew 62% to 24.97 billion XOF ($43.2 million), while operating income reached 18.38 billion XOF ($31.8 million), up 139%.

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The board proposed dividends of 12.97 billion XOF ($22.5 million), nearly triple the 4.97 billion XOF ($8.6 million) paid last year. Cash flow from operations remained strong at 15.28 billion XOF ($26.5 million), despite a decrease from 16.74 billion XOF ($29 million) in 2023. Investment activities consumed 6.23 billion XOF ($10.8 million). The company ended 2024 with net cash of 1.44 billion XOF ($2.5 million).

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Key Takeaways

SOGB's exceptional performance reflects the global rubber market recovery, with natural rubber prices reaching multi-year highs in 2024 as supply constraints met rebounding demand from automotive and industrial sectors. The company's integrated business model - producing both rubber and palm products - provides resilience against commodity price volatility. Palm oil operations delivered stable results while rubber drove profit growth. SOGB's increased payments to village planters (+30%) highlight the company's role in Ivory Coast's agricultural economy, where rubber is the country's fourth-largest export. The sector employs approximately 160,000 people nationwide. The substantial dividend proposal signals management confidence in sustained performance despite typical price cyclicality in commodity markets. This comes as Ivory Coast consolidates its position as Africa's largest rubber producer and the world's fourth-largest, with annual production exceeding 950,000 tonnes, representing about 80% of West African output.

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