OCP S.A., a major player in plant nutrition solutions and phosphate fertilizers, published its first-quarter 2025 results on May 29, with revenue reaching 21.594 billion dirhams compared to 19.589 billion dirhams in the first quarter of 2024. The company's gross margin increased to 14.901 billion dirhams from 12.705 billion dirhams year-over-year, representing an improvement to 69% from 65% previously. However, EBITDA declined slightly to 7.494 billion dirhams from 7.703 billion dirhams, maintaining a solid margin of 35%. Global fertilizer demand remained sustained during the quarter, driven by a gradual recovery in Europe, increased imports in Africa—particularly Ethiopia—Oceania, and Brazil, alongside historically low inventory levels in India. Supply remained stable, partly due to Chinese restrictions on DAP/MAP exports. OCP's revenue growth stemmed primarily from higher rock volumes and improved demand for fertilizers and phosphoric acid. The company achieved its gross margin improvement despite significant increases in input costs, particularly sulfur, which saw substantial year-over-year price increases. Capital expenditure totaled 5.934 billion dirhams during the quarter, down from 9.301 billion dirhams in the first quarter of 2024. The results reflect operational efficiency gains that helped offset rising production costs in the current market environment.
