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Ivorian agro-allied company Palmci SA has returned a $37.1-million value gain to shareholders in the past 62 days, as its stock price surged by more than 26 percent above the CFA6,900 ($11.9) mark.
Palmci SA is an Ivory-Coast-based company engaged in the cultivation, processing and marketing of crude palm oil in West Africa. It sells refined palm oil through its Dinor and Palme d’Or brands.
The company operates as a leading player in the agricultural sector and as a subsidiary of SIFCA, an Ivorian agro-allied group founded by the late businessman Pierre Billon, the father of the country’s Minister of Commerce Jean-Louis Billon.
As of press time, its shares were worth CFA6,950 ($11.99) per share, 87-basis points higher than their opening price on Wed., Dec. 1.
The multimillion-dollar gain in the company’s market capitalization can be linked to its resilient financial performance in the first half of 2021, driven by a surge in commodity prices and cost-optimization strategies deployed by the agro-allied company in 2021.
During the first-half-year period, Palmci reported a three-fold increase in net income from CFA10.6 billion in the first half year of 2020 to CFA31.4 billion in 2021, while its net sales increased from CFA76 billion to CFA110.1 billion.
As a result of the strong financial performance, investors intensified buying interest in the agro-allied, which led to the surge in its share price above the CFA6,375 ($11) per share mark.
Since Oct. 1, Palmci’s shares have risen from CFA5,500 ($9.5) to CFA6,950 ($11.99) per share on Dec. 2. This translates to a 26.4-percent gain for shareholders in 62 days.
The company’s market capitalization since Oct. 1 has grown from CFA85 billion ($146.8 million) to CFA107.4 billion ($185.5 million) as of the time of writing, accruing a total of CFA22.4 billion ($38.7 million) in value gain for shareholders in two months.
