Following a stellar performance in the first quarter of 2022, shares in Moroccan consumer goods company Mutandis S.A. retreated from a record high of MAD268 ($27.1) in February, with the firm’s valuation declining significantly on the heels of a sustained sell-off despite reporting a double-digit increase in revenue.
The sustained sell-off in Mutandis’ share price since its shares reached a record high of MAD268 ($27.1) on Feb. 8 has resulted in a loss of MAD25.86 million ($2.61 million) for Adil Douiri, a Moroccan multimillionaire businessman and industrialist who owns a large stake in the company.
Mutandis, a Moroccan packaged foods industry leader, was founded in 2008 by Douiri, a politician and businessman who owns 6.88 percent of the consumer goods firm.
Shares in the Moroccan packaged foods industry have fallen from MAD268 ($27.1) to MAD221 ($22.34) per share at the time of writing this report, representing a 17.5-percent loss for shareholders over the past 109 days.
As a result of the decline, the market value of Douiri’s 6.88-percent stake in Mutandis dropped from MAD147.45 million ($14.9 million) on Feb. 8 to MAD121.6 million ($12.3 million) at the time of writing this report.
This translates to a MAD25.86-million ($2.61 million) loss for the Moroccan businessman in just 109 days.
According to a recently published activity indicator, Mutandis’ revenue rose by 40 percent from MAD300 million ($29.8 million) in the first quarter of 2021 to MAD422 million ($42 million) in the first quarter of 2022, owing to increased sales of the company’s products such as detergents and food bottles.
Aside from the reopening of tourism and catering, which boosted Moroccan beverage consumption and Mutandis product sales in the country, the company’s sales increased due to the acquisition of the Season brand in the United States, which contributed MAD108 million ($10.75 million).
