SAH LILAS / SAH.TN is a personal care group (paper, baby diapers, adult diapers, feminine hygiene, kitchen rolls, wipes, detergents…)
SAH Group is poised to rebound after the 2021 underperformance amid an extremely harsh environment. The group was under huge strains in the domestic market but also in the north Africa and sub-Saharan Africa regions But things were not that bad, in terms of consolidated sales, the group was able to grow in 2021 compared with 2020. The commercial performance was possible thanks to the capacity consolidation on the different plants and the diversification of the product mix. The weak point was rentability: Earnings have substantially fallen compared with 2020. The bad environment, but also the cost of investments were the key elements of the 2021 underperformance.
SAH Group confirms its earnings growth forecasts for 2022, nonetheless. Despite the bad environment, SAH Lilas has a strong brand name and a highly diversified product mix. The group continues to invest in innovation and grab market share in the domestic and regional markets. Based on the 2022 bp forecasts 2022-2025, the recovery will start this year 2022 with earnings back to normality. Higher consolidation between the group subsidiaries thanks to the paper mill Azur Papier which has successfully installed its second production line for fluff cellulose, thanks to the successful conquest of new markets in the region, and thanks to the rational cost management. We expect higher consolidated sales in 2022 and beyond. With sales volumes rising, the other operating charges will be on the rise. The group masters the optimization process which makes us comfortable with productivity. In general, we expect the group to improve its KPIs in the coming years.