In the first half of 2024, TGCC evolved in a favorable environment, marked by a continued recovery of the construction sector in Morocco. This dynamic has been accentuated by major public initiatives, such as the preparation of infrastructure for the 2025 African Cup of Nations (CAN) and the 2030 World Cup.
At the end of the first half of 2024, TGCC recorded solid growth, driven by a sharp increase in production volume. With more than 90 projects underway in Morocco and internationally, the Group reached an operating income of 3.9 billion DH, marking an increase of 30% compared to the first half of 2023. This exceptional performance is based on the execution of major projects in strategic sectors such as education, health and real estate. Among the emblematic projects are the Mohammed VI Polytechnic University of Rabat, the Benguerir Business Center, the Ibn Sina University Hospital in Rabat as well as residential projects such as Ksar El Bahr in Tangier.
At the same time, the Group’s subsidiaries are experiencing a ramp-up in their activity in line with TGCC’s growth rate, contributing 18% to consolidated turnover.
Profitability and earning power
In the first half of 2024, TGCC achieved an EBITDA of MAD 520 million, up 77% compared to the previous year. This performance resulted in a significant increase in the EBITDA margin, which gained 3.6 points to 13.5%. This progression is based on several key factors:
* Significant increase in production level
* The rise of the Group’s subsidiaries and the improvement of their profitability
* Pursuing cost control and improving operational efficiency, through better allocation of resources in a context of strong growth.
This half-year ends with a significant increase in net profit, which amounts to MAD 259 million, illustrating both the acceleration of activity and the continued improvement in the Group’s operational profitability.
Investment
In the first half of 2024, the Group’s investments stood at MAD 84 million, recording a drop of 50% compared to the same period in 2023. This decrease is explained by the significant investments made in 2023, which now allow to meet current production needs. However, to support its growth dynamic, TGCC plans to continue to modernize and renew its fleet of machines and equipment throughout the year.
Debt and financial strength
The Group’s net debt reached MAD 1,184 million, up 21% compared to December 31, 2023, reflecting the financial support necessary to support the Group’s pace of development and production rate.
Order book as of June 30, 2024
In the first half of 2024, TGCC maintained strong commercial momentum, marked by the signing of several new strategic projects. The order book at the end of the first half reached a record, standing at MAD 8.6 billion.
Perspectives
With a solid order book and new potential for structuring projects for Morocco, TGCC is approaching the second half of 2024 with visibility and renewed confidence for the rest of the year. The diversity and quality of current projects, particularly in the education sectors, with UM6P in Rabat and Benguerir, as well as in health, with the Akdital clinics and the University Hospital in Rabat, will continue to support the dynamic growth of the Group. Furthermore, the launch of the two new subsidiaries, TG Stone and TG Steel, marks a key step in the Group’s verticalization and diversification strategy, broadening its field of expertise to support its growth and ambitions.
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