CMGP Group Reports 34.7% Surge in Net Profit to MAD 130M in H1 2026

CMGP Group has announced impressive financial results for the first half of 2026, demonstrating robust growth across its diversified portfolio of agricultural and industrial operations. The company posted consolidated revenue of MAD 1,588 million, representing a substantial 41.7% increase compared to the same period in 2025.

Strong Revenue Growth Driven by Acquisitions and Organic Expansion

When adjusted for a pro forma basis that includes the full contribution of recently acquired subsidiaries CPCM, Agrosem, and Sodipire throughout the comparative period, the revenue growth stands at 8.7%. These three entities alone contributed MAD 433 million to consolidated revenue during the semester, marking a 27.2% increase compared to their pro forma contribution in H1 2025.

The performance reflects not only successful integration of acquisitions but also the underlying strength of the group's core operations. After a challenging first quarter affected by adverse weather conditions that delayed certain construction projects, activity accelerated significantly in the second quarter thanks to more favorable agricultural conditions following substantial rainfall in late 2025 and early 2026.

Retail Division Maintains Commercial Momentum

The Retail Business Unit sustained solid commercial dynamics throughout the first half, with positive trends across all major segments:

• Agricultural Equipment: Activity recovered substantially in the second quarter as irrigation project installations gradually resumed following weather-related delays in Q1.
• Agricultural Supplies: The segment demonstrated strong performance with plastic films sales surging 73.8%, accompanied by increases in fertilizer sales (up 19.4%) and phytosanitary products (up 5.6%), despite challenging international supply conditions and logistics constraints.
• New Subsidiaries: CPCM, Agrosem, and Sodipire recorded growth of 15.2%, 42.2%, and 121.7% respectively compared to their pro forma H1 2025 contributions. The integration of Sodipire, finalized in March 2026, expands the group's offering in agricultural equipment, particularly tractors and farming machinery, reinforcing its value proposition to farmers.

Project Division Shows Progressive Recovery

After facing execution challenges in the first quarter, the Project Business Unit experienced renewed activity in Q2. The division benefits from a robust order book, including major infrastructure projects in the Saïss plain worth MAD 345 million and in Khémisset valued at MAD 94 million, both now under execution.

Industrial Agriculture Segment Expands Production Capacity

The Industrial Business Unit continues ramping up its capabilities, supported by the scaling of industrial facilities at Jorf Lasfar and Drarga, the launch of a new production site for agricultural twines and ropes, and strong dynamics in irrigation sleeve manufacturing. These capacity expansions strengthen the group's vertical integration and secure supply for its commercial activities.

Non-Agricultural Activities Show Growth

Non-agricultural operations, encompassing water and sanitation pipe production and industrial chemicals through subsidiary CPCM, generated revenue of MAD 122 million in H1 2026 versus MAD 49 million in H1 2025. On a pro forma basis, revenue growth reached 9.4%.

The Infrastructure branch returned to stronger execution pace in the second quarter after project delays early in the year, achieving activity levels comparable to H1 2025. Industrial chemicals, representing 59% of non-agricultural revenue, maintained favorable momentum driven by new solutions for paper and cardboard markets and higher value-added product growth.

Profitability Strengthens Despite Higher Financing Costs

Consolidated EBITDA reached MAD 269 million as of June 30, 2026, up 50.8% year-over-year and 9.1% on a pro forma basis. The EBITDA margin improved to 16.9%, gaining one percentage point thanks to enhanced operational margins.

Net profit attributable to the group totaled MAD 130 million, compared to MAD 97 million in H1 2025—a 34.7% increase. This improvement stems primarily from stronger operational performance, partially offset by increased interest expenses related to bond financing.

Net debt, including leasing contracts, stood at MAD 1,083 million at end-June 2026, up from MAD 949 million at end-December 2025. This evolution is mainly explained by higher working capital requirements accompanying business growth, though working capital as a percentage of revenue measured in days remained stable.

Management Commentary and Outlook

Youssef Moamah, Chairman and CEO of CMGP Group, stated: "The performance recorded in the first half of 2026 confirms the relevance of our integrated model and the momentum initiated through the expansion of the group's scope. In a more favorable agricultural environment, CMGP Group continued its growth while strengthening operational performance. The scaling of our industrial capabilities, the solidity of our order book, and the progressive deployment of synergies with CPCM, Agrosem, and Sodipire constitute important levers for pursuing our development."

Looking ahead to the second half of 2026, CMGP Group maintains favorable prospects supported by improved agricultural conditions, a solid order backlog, and increasing industrial capacity utilization. The company will continue deploying synergies with recently acquired entities while pursuing its development strategy and evaluating external growth opportunities aligned with its ambition to strengthen positions in agriculture, water, and energy sectors.