(Business in Cameroon) – Starting at CFA27,200 in January 2022, the stock of Cameroon-based palm oil producer Socapalm, a subsidiary of Luxembourg’s Socfin Group, has nearly doubled. Listed on the Central African Stock Exchange (Bvmac) in Douala, the stock closed 2022 at CFA47,200. By the end of 2023, it had reached CFA50,100, marking significant growth since early 2022.
According to Bvmac’s newly released 2023 activity report, investor interest in Socapalm’s stock boosted its trading metrics in 2023. Compared to 2022’s lower trading volumes, Socapalm saw growth in transaction volume, value, and trade count, with increases of +95%, +139%, and +66%, respectively. At one point during the year, the stock price even peaked at CFA54,000.
This upward trend reflects the strong performance of Socapalm, Cameroon’s leading palm oil producer. Local refineries guarantee the purchase of all Socapalm’s annual production, further supporting its stability. For the first half of 2023, Socapalm reported a post-tax net income of CFA13.7 billion, up 15.6% from CFA11.8 billion recorded in June 2022.
“Like many companies, we face rising costs for agricultural inputs, production factors, and land leases. However, we’ve managed to maintain our performance through careful management of operating expenses and improved agricultural and industrial techniques,” Socapalm’s Board of Directors stated in an official release.
Despite a challenging year with lower production levels, Socapalm’s solid earnings allowed shareholders to receive a 2023 dividend of CFA1.8 billion, or CFA2,314 per share, marking a 20% increase from 2022. In the previous year, shareholders received a total dividend of CFA1.5 billion, equal to CFA2,002.50 per share.
