Agri-food: A Sector on the Sidelines of the Stock Market Rally

The listed agri-food sector is not the most favored on the stock exchange. The “agri-food/production” index, which includes Cartier Saada, Dari Couspate, Cosumar, Lesieur, Mutandis, and Unimer, has risen by only 5.4% since the start of the year.

The “agri-food beverages” index, which includes Oulmès and Boissons du Maroc, is down 3.2%. They are thus moving against the trend of the general market index, which records an annual performance of over 27%.

It should be noted from the outset that the agri-food sector, by its nature, is non-cyclical, as it meets fundamental needs and whose demand does not vary significantly, regardless of the economic situation.

However, some stocks stand out more than others. Of the eight listed stocks, Cosumar, Dari Couspate, and Lesieur show share prices that have increased since the start of the year: the first by 7% to a price of 203.5 DH, the second by 21.7% to 4,200 DH, and the last by 20% to 360 DH.

The pasta specialist is bearing the brunt of the evolution of international wheat prices. Moreover, in the 3rd quarter of this fiscal year, consolidated revenue fell by 2.4% to reach 597 million DH, notably due to a price effect, but also to the shift of export orders to the first quarter of 2025.

To secure its supply, Dari Couspate carried out a strategic vertical integration operation, consisting of the acquisition of all the industrial assets of the company Grandes Semouleries du Maroc, one of its main historical suppliers.

Through this operation, Dari Couspate not only guarantees its wheat resources but also creates operational synergies and anticipates the challenges of an ever-changing market.

This acquisition then earned it favor with investors, considering the company less dependent on fluctuations in international prices and ensuring the continuity of its productivity and therefore its results.

The Cosumar stock has always been considered a defensive, core portfolio stock, whose performance is certainly subject to climatic hazards, but whose business model cannot be interrupted, just like the supply of the national sugar market.

It must be said that exports continue to grow thanks to the extension of refining capacity completed at the Sidi Bennour refinery. Moreover, exports are largely responsible for the 3.7% increase in revenue to 8 billion dirhams in the first quarter.

Lesieur Cristal, for its part, is suffering from fierce competition in the sector, leading to an unfavorable price effect. At the end of September, revenue remained at 4.2 billion DH, despite an increase in volumes sold. In the third quarter alone, it decreased by 17% to reach 1.4 billion DH.

“Lesieur Cristal has always had this problem: that of maintaining its market share against its competitors, even with its strong brands. This inevitably affects its commercial performance.” However, it is a company whose fundamentals remain solid.

Despite this, the share price particularly stood out at the end of last year, completely reversing its trend recorded since early January.

The less fortunate

Conversely, Mutandis was impacted by two major events. The first is related to the temporary shutdown of the Aïn Ifrane plant, with a recovery reaching up to 70% of its normative capacity. This resulted in a 30% decline in revenue for the “beverages” segment to 193 million DH.

The second is related to the decline in fishing catches, notably sardines. Revenue fell by 7% to reach 1.5 billion DH, a limited decline thanks mainly to the “Hygiene” activity, whose revenues remained almost stable at 575 million DH.

On the stock exchange, the share price has lost 17.7% since early January to reach 250 DH. The weakness of the national fishing season has also had an unfavorable effect on Unimer, despite a recovery under good auspices this year. Its revenue decreased in the first nine months by 18% to reach 379 million DH.

Société des Boissons du Maroc is not faring any better. The share price is down 3% to 2,290 DH. “If the company continues to consolidate its position on its iconic local brands (Spéciale Gold and Casablanca), it fails to break through the market with the launch of Carlsberg or La Cigogne,” explains an analyst.

In any case, the 5.8% increase in revenue at the end of September is mainly attributable to the good performance of its historical brands.

Faced with intense competition, Oulmes is coping remarkably, especially with the entry of new operators into the market.

“The company is trying to defend itself as best it can with the launch of Vitalya and its various versions such as Vitalya Boost and Vitalya Alcaline. But it is being overtaken by the various beverage offerings on the market.”

Nevertheless, its revenues increased by 11.7% at the end of September to 2.5 billion DH. However, its share price fell by 4% to 1,182 DH.

Interesting fundamentals

The agri-food sector, due to its defensive nature, does not experience major fluctuations on the stock exchange. Given the nature of its activity, the sector generates business volumes that do not vary significantly.

On the stock exchange, the agri-food sector has interesting fundamentals with a P/E of 25x in 2026, compared to a market average of 20x. The dividend yield is 4.6%, placing it among the most generous sectors in the market, which itself has a dividend yield of 2.9%.