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AFRI

Forafric Global PLC

AFRI

Forafric Global PLC • NASDAQ
$10.25 ▲ 5.13% (+0.50)
Market Cap $275.74 M
52w High $10.75
52w Low $7.47
Dividend Yield 0%
P/E -11.78
Volume 7.88K
Outstanding Shares 26.90M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2024 $82.619M $11.164M $-6.378M -7.72% $-0.24 $1.798M
Q1-2024 $82.619M ▲ $11.164M ▲ $-6.378M ▼ -7.72% ▼ $-0.24 ▼ $1.798M ▼
Q4-2023 $79.93M $5.051M ▼ $-2.027M -2.536% $-0.075 $2.728M
Q3-2023 $79.93M ▲ $7.065M ▼ $-2.027M ▲ -2.536% ▲ $-0.075 ▲ $2.728M ▲
Q2-2023 $72.808M $7.512M $-4.311M -5.921% $-0.16 $350K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2024 $12.231M $246.078M $240.762M $-1.673M
Q3-2024 $12.231M ▼ $246.078M ▼ $240.762M ▼ $-1.673M ▼
Q2-2024 $16.368M $287.122M $270.812M $9.381M ▼
Q1-2024 $16.368M ▼ $287.122M ▼ $270.812M ▼ $9.381M ▼
Q4-2023 $24.021M $309.45M $280.244M $22.795M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2024 $-6.378M $6.695M $-332K $-10.05M $0 $6.413M
Q1-2024 $-6.378M ▼ $6.695M ▼ $-332K ▲ $-10.05M ▼ $0 ▲ $6.413M ▼
Q4-2023 $-2.027M $11.294M $-2.825M $-8.626M $-567K $8.591M
Q3-2023 $-2.027M ▲ $11.294M ▲ $-2.825M ▼ $-8.626M ▼ $-567K ▼ $8.591M ▲
Q2-2023 $-4.311M $5.369M $-2.094M $-1.966M $164K $3.308M

Five-Year Company Overview

Income Statement

Income Statement Revenue has been rising gradually over the past few years, but profits have not followed. Gross profit has stayed roughly flat, which suggests costs are rising almost as fast as sales. Operating results hover around break-even and have recently slipped into a small loss. Net income has been negative in most recent years, and per‑share losses have widened. In short, the business is growing slowly but is not yet turning that growth into stable, meaningful profits.

Balance Sheet

Balance Sheet The balance sheet looks stretched. Total assets have been roughly stable, but equity has eroded over time and is now very thin. Debt makes up a large part of the capital structure, which increases financial risk and reduces flexibility. Cash on hand is modest relative to the size of the business and the debt load. Overall, the company appears highly leveraged and has only a small buffer to absorb shocks or fund major new initiatives without outside capital.

Cash Flow

Cash Flow Cash generation has improved. After several years of negative operating cash flow, the business has recently been able to produce a small positive cash surplus from its core operations. Free cash flow is also slightly positive, mainly because capital spending has been kept low. This means the company is now better at converting its activities into cash, even if accounting profits are still negative. However, the margin for error remains narrow, and sustained positive cash flow over several years would be needed to materially strengthen its finances.

Competitive Edge

Competitive Edge Forafric holds a strong position in its home market of Morocco, with long-established brands and deep local roots. Its integrated storage and logistics network gives it an edge in sourcing grain and delivering products efficiently. Scale across multiple mills and the ability to offer a full range of flour, semolina, pasta, and couscous supports its role as a key supplier locally and across many export markets. At the same time, it operates in a commodity-like, low-margin business that is sensitive to grain prices, regulation, and weather, and it is heavily exposed to a single core geography. The moat is solid at home but less obvious on a broader global stage.

Innovation and R&D

Innovation and R&D Innovation is focused on process and efficiency rather than new products. The partnership with a leading milling-technology provider aims to modernize mills with automation and energy-saving systems, which can help reduce costs and downtime. The company has also built a sizeable storage and logistics platform, which is more of an operational innovation than pure research. Management has signaled interest in working on crop yield and quality improvements in collaboration with the broader sector, but this appears to be at an early stage. Future value from innovation will depend on how well the new mills are executed and how effectively technology is used to lower unit costs and stabilize margins.

Summary

Forafric combines a strong local franchise in Morocco with a financial profile that is still fragile. The business enjoys brand recognition, integrated infrastructure, and a focused strategy in soft and durum wheat, yet operates on thin margins and carries a high debt burden. Revenues have grown, cash flow has recently turned positive, but profits remain negative and equity is very light. The key swing factors ahead are the successful completion of its mill modernization program, disciplined execution of its strategic refocus on core assets, and visible progress in strengthening the balance sheet and improving profitability over time.