SAPH (BRVM: SPHC), the Abidjan-based rubber processor and subsidiary of the SIFCA Group, posted net profit of 2.6 billion FCFA ($4.7 million) in the first quarter of 2026, down 78% from 11.8 billion FCFA ($21.1 million) in the same period of 2025 -- one of the sharpest earnings drops among BRVM-listed industrials this reporting season.
Revenue fell 24% to 71.8 billion FCFA ($128.3 million). The company identified two drivers: volumes sold dropped 11% because congestion at the port of San Pedro disrupted shipments, and average selling prices were 17% lower than a year earlier, reflecting weaker global rubber markets in the period.
The operating result bore the brunt, falling 73%. The company noted that Q1 2025 was an unusually strong base -- meaning the year-on-year comparison is partly a reflection of how high the bar was set, not just how bad this quarter was.
There are reasons to expect a recovery. SAPH said it held a stock of finished goods at the end of March whose sale began in April 2026 and will continue in coming months, partly at export prices that are higher than domestic. The global rubber benchmark, the SICOM 20, averaged $1.91/kg in Q1 2026, above the full-year 2025 average of $1.76/kg, signalling better pricing ahead.
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The company is also expanding its Soubré processing plant and positioning itself to supply the EU market under the EUDR deforestation framework, whose enforcement for large operators is set for December 2026.
Key Takeaways
SAPH is Côte d'Ivoire's largest natural rubber processor, operating industrial plantations and sourcing from village farmers across the country's rubber belt. Côte d'Ivoire is the world's largest producer of natural rubber and the EU is a major destination for its exports, which is why the EUDR -- the European Union's deforestation regulation covering rubber among other commodities -- matters enormously for SAPH. The regulation requires exporters to prove that rubber is produced on land that was not deforested after December 31, 2020. The deadline for large operators was pushed to December 30, 2026, giving companies like SAPH additional time to build traceability systems. SAPH has stated it is maintaining its commitment to supplying sustainable rubber regardless of the regulatory timeline, a positioning that may prove commercially valuable as European buyers increasingly prefer traceable supply. The Q1 weakness -- driven by port congestion and a carry-over of lower-priced contracts from late 2025 -- is technical and temporary in the company's own framing. The more durable variable is raw material competition: SAPH said domestic sourcing competition has intensified, putting pressure on purchase prices. If that persists into H2 2026, the full-year recovery management is guiding toward a smaller number than the stock price currently implies.
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