Ivorian water utility and Eranove subsidiary SODE CI (BRVM: SDCC), ended 2025 with its strongest operating performance in recent years, delivering net profit of 4.66 billion FCFA ($8.3 million) -- up 31% from 3.56 billion FCFA ($6.4 million) in 2024 -- as revenue grew and costs came under firmer control.
Revenue rose 10% to 189.4 billion FCFA ($338.5 million), driven by a 6.1% rise in the customer base to 2.27 million connections and a 2.6% increase in water production to 388.3 million cubic metres. The billing ratio improved to 85.5% and the collection rate reached 95.9%, two operational metrics that directly determine how much of the water produced actually converts into revenue. Both numbers moved in the right direction.
Operating profit -- the clearest measure of the underlying business before financing and taxes -- rose 34% to 9.1 billion FCFA ($16.3 million), reflecting both the revenue growth and tighter management of the cost base. The EBITDA equivalent came in at 21.8 billion FCFA ($39 million), up 21%.
The board has proposed a dividend of 525 FCFA per share, amounting to a total payout of 4.73 billion FCFA ($8.5 million), payable by 30 September 2026. That represents almost all of the year's net profit -- a distribution policy that signals confidence in recurring cash generation but leaves little retained for reinvestment.
Follow us on WhatsApp | LinkedIn for the latest headlines
The one caveat management flagged is cash flow: despite the profit improvement, the treasury position remains under pressure, with SODECI carrying a net negative cash position under IFRS by year end. The balance sheet grew to 472.7 billion FCFA ($845 million), reflecting continued infrastructure investment, but financing needs are rising alongside it.
Key Takeaways
SODECI's 2025 result is a demonstration of what operational leverage looks like in a utility: modest revenue growth, combined with better billing and collection rates and cost discipline, flowed through to a 31% rise in net profit. The improvement in the billing ratio from below 85% to 85.5% -- meaning more of the water physically produced is actually invoiced to customers -- is the kind of unglamorous operational metric that has a direct and outsized effect on profitability in a utility where fixed infrastructure costs are largely sunk. Similarly, a collection rate of nearly 96% means the company is actually receiving almost all of what it bills, which in a market where state utilities often struggle with unpaid receivables is a genuine competitive and operational strength. The tension in the result is the cash position: SODECI's net treasury was negative under IFRS at year end, meaning the company's operating cash generation is not fully covering its capital needs. This matters because SODECI is about to deploy a new public service delegation contract for drinking water -- a process that typically involves negotiating updated tariffs, service standards, and investment commitments with the Ivorian state. The outcome of that negotiation will shape the company's revenue trajectory for the next decade. A favourable tariff revision would resolve the cash tension structurally; an unfavourable one would force the company to borrow more to fund the infrastructure expansion that Abidjan's growth demands. For investors, the 525 FCFA dividend is a tangible near-term return, but the delegation contract negotiation is the event to watch.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
