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Cosumar Reports 10% Revenue Drop in H1 2026 Amid Rising Debt and Flood Disruptions
Moroccan sugar producer Cosumar saw its consolidated revenue decline 10% year-over-year to 4.825 billion dirhams in the first half of 2026, impacted by logistical challenges and weakening global sugar prices. The company's net debt surged 45% to 2.333 billion dirhams, driven by increased agricultural campaign financing needs. While Q2 showed signs of recovery with improved commercial dynamics, severe flooding in key growing regions reduced national sugar production to 240,000 tonnes from 280,000 tonnes in the previous campaign.
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Morocco's leading sugar producer Cosumar faced significant headwinds during the first six months of 2026, with consolidated revenues falling to 4.825 billion dirhams compared to 5.362 billion dirhams in the same period last year—a decline of 10%. Despite these challenges, the company reported improved commercial and logistical momentum in the second quarter that helped offset some of the volume shortfalls experienced at the year's start.
Q2 Performance Shows Sequential Improvement
Second-quarter revenues reached 2.619 billion dirhams, down just 2.8% year-over-year, representing a marked improvement from the 17.3% decline recorded in Q1. This gradual normalization of sales volumes came as the group mobilized its industrial and logistics capacity following temporary disruptions in port and supply chain operations.
However, the quarter was not without its difficulties. Weakening global prices for both white and raw sugar created an unfavorable pricing environment that weighed on revenues, particularly in the company's export activities.
Net Debt Climbs 45% as Financing Needs Expand
By the end of June 2026, Cosumar's consolidated net debt stood at 2.333 billion dirhams, up sharply from 1.608 billion dirhams a year earlier—a substantial 45.1% increase. The company attributed this rise primarily to higher working capital requirements for the agricultural campaign, driven in part by expanded acreage planted with sugar beet and sugar cane crops.
Capital expenditures during the semester totaled 78 million dirhams, down from 92 million dirhams in the prior-year period. These investments focused mainly on continuing upgrade and maintenance programs for the company's industrial facilities.
Flooding Disrupts Sugar Production Campaign
National white sugar production from the 2026 agricultural campaign reached 240,000 tonnes, falling short of the 280,000 tonnes produced in the previous campaign. The shortfall was largely attributed to severe flooding that impacted key growing regions of Gharb and Loukkos.
On a more positive note, the company reported approximately 15% improvement in sugar cane yields, supported by better water availability during the growing season.
Outlook: Improved Dam Levels Support Future Campaigns
Looking ahead, Cosumar highlighted that rising reservoir levels are providing better visibility for upcoming agricultural seasons. The company anticipates cultivating more than 60,000 hectares of sugar crops starting with the 2026/2027 campaign.
Management also expects that the gradual normalization of port traffic in the second half of the year will enable the group to meet its 2026 budget targets, suggesting cautious optimism despite the challenging first-half performance.