Vivo Energy Côte d'Ivoire, a subsidiary of the Anglo-Dutch Shell group specializing in petroleum product distribution, has recently released provisional financial results for the first quarter of 2024. The company reported a net profit of CFA1.28 billion ($1.6 million), marking a 48% increase yoy. This growth represents the highest surge since 2017.
The notable increase in net profit, exceeding one billion CFA francs for the first time in a Q1, is primarily attributed to a 9% rise in sales volumes, coupled with an uptick in average pump prices between 2023 and 2024. While these factors were highlighted in the company's financial communication, slight variations in context, such as the level of fuel prices in Côte d'Ivoire, were observed compared to previous years.
Despite these positive results, Vivo Energy CI must continue optimizing its margins to remain attractive to investors on the Abidjan-based Regional Stock Exchange (BRVM), where it is listed. For comparison, TotalEnergies Senegal, with a significantly lower turnover of CFA124 billion, reported a net profit of CFA2.3 billion for the same quarter, representing a 26% decrease from the previous year.
Moreover, TotalEnergies Côte d'Ivoire, the main competitor of Vivo Energy CI, achieved a net profit of CFA3.2 billion for the quarter, up 18.9% from 2023. This result reflects a profit-to-sales ratio (net margin ratio) of 2%, compared to 0.8% for Vivo Energy CI. In the petroleum product distribution sector, a net margin ratio between 1% and 5% is generally considered standard.
It's worth noting that Shell holds 66.7% of the company's shares, while 28.3% of the shares are available on the stock market. Despite not being among the most active stocks on the BRVM, with an average transaction volume not exceeding CFA500 million per year, Vivo Energy CI remains an essential component for investor portfolios. However, despite a record net profit for the beginning of 2024, the stock price decreased by 3.16%, highlighting the need for the company to consolidate its gains to enhance shareholder value.