Revenue growth of 13.5% in 2024Q2 is undermined by thin gross margins of 11.3% and persistent net losses, resulting in a negative net margin of -7.7%.
Forafric Global PLC (AFRI) annual income statement — 7-year revenue, gross profit & net income history
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 176.49M | 274.22M | 305.48M | 289.77M | 261.68M | 196.6M | 183.21M |
| Revenue Growth % | -35.64% | -10.23% | 5.42% | 10.74% | 33.1% | 7.31% | - |
| Cost of Goods Sold | 158.56M | 246.89M | 275.05M | 260.4M | 219.31M | 156.19M | 147.5M |
| COGS % of Revenue | 89.84% | 90.03% | 90.04% | 89.86% | 83.81% | 79.45% | 80.51% |
| Gross Profit | 17.93M | 27.33M | 30.43M | 29.21M | 42.37M | 40.41M | 35.71M |
| Gross Margin % | 10.16% | 9.97% | 9.96% | 10.08% | 16.19% | 20.55% | 19.49% |
| Gross Profit Growth % | -34.39% | -10.17% | 4.17% | -31.06% | 4.85% | 13.15% | - |
| Operating Expenses | 20.47M | 35.09M | 29.29M | 26.93M | 38.98M | 30.52M | 31.73M |
| OpEx % of Revenue | 11.6% | 12.8% | 9.59% | 9.29% | 14.9% | 15.52% | 17.32% |
| Selling, General & Admin | 20.47M | 35.09M | 29.29M | 30.8M | 38.98M | 30.52M | 31.73M |
| SG&A % of Revenue | 11.6% | 12.8% | 9.59% | 10.63% | 14.9% | 15.52% | 17.32% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | -3.86M | 0 | 0 | 0 |
| Operating Income | -2.54M | -7.76M | 1.13M | 2.27M | 3.39M | 9.89M | 3.98M |
| Operating Margin % | -1.44% | -2.83% | 0.37% | 0.79% | 1.29% | 5.03% | 2.17% |
| Operating Income Growth % | 67.34% | -785% | -50.2% | -32.81% | -65.77% | 148.64% | - |
| EBITDA | 4.04M | -1.72M | 6.95M | 8.87M | 8.6M | 14.86M | 9.02M |
| EBITDA Margin % | 2.29% | -0.63% | 2.27% | 3.06% | 3.28% | 7.56% | 4.92% |
| EBITDA Growth % | 335.04% | -124.74% | -21.68% | 3.16% | -42.16% | 64.71% | - |
| D&A (Non-Cash Add-back) | 6.57M | 6.04M | 5.81M | 6.59M | 5.21M | 4.97M | 5.04M |
| EBIT | -2.54M | -8.87M | 1.4M | -8.71M | 2.49M | 9.89M | 3.84M |
| Net Interest Income | -14.27M | -12.78M | -13.98M | -12.48M | -9.82M | -6.84M | -9.43M |
| Interest Income | 52K | 31K | 37K | 34K | 543K | 3K | 5K |
| Interest Expense | 14.32M | 12.81M | 14.02M | 12.51M | 10.36M | 6.85M | 9.43M |
| Other Income/Expense | -8.19M | -13.92M | -13.75M | -19.23M | -11.26M | -9.89M | -9.57M |
| Pretax Income | -10.72M | -21.68M | -12.61M | -16.96M | -7.87M | 4K | -5.59M |
| Pretax Margin % | -6.08% | -7.91% | -4.13% | -5.85% | -3.01% | 0% | -3.05% |
| Income Tax | 1.38M | 1.65M | -106K | -1.84M | -89K | 143K | 2.51M |
| Effective Tax Rate % | -12.9% | -7.61% | 0.84% | 10.87% | 1.13% | 3575% | -44.88% |
| Net Income | -14.89M | -24.32M | -12.68M | -19.17M | -7.98M | -110K | -8.1M |
| Net Margin % | -8.44% | -8.87% | -4.15% | -6.62% | -3.05% | -0.06% | -4.42% |
| Net Income Growth % | 38.79% | -91.9% | 33.88% | -140.17% | -7156.36% | 98.64% | - |
| Net Income (Continuing) | -12.11M | -23.33M | -12.51M | -15.11M | -7.78M | -139K | -8.1M |
| Discontinued Operations | -1.69M | -22K | 43K | 0 | 0 | 0 | 0 |
| Minority Interest | 15.35M | 6.99M | 6.41M | 6.9M | 7.52M | 82K | 0 |
| EPS (Diluted) | -0.55 | -0.90 | -0.47 | -0.72 | -0.39 | -0.01 | -0.31 |
| EPS Growth % | 38.89% | -91.49% | 34.72% | -84.62% | - | 98.26% | - |
| EPS (Basic) | -0.55 | -0.90 | -0.47 | -0.72 | -0.39 | -0.01 | -0.31 |
| Diluted Shares Outstanding | 26.9M | 26.88M | 26.88M | 26.6M | 20.56M | 15.05M | 26.46M |
| Basic Shares Outstanding | 26.9M | 26.88M | 26.88M | 26.6M | 20.56M | 15.05M | 26.46M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AFRI stock.
For fiscal year 2025, Forafric Global PLC (AFRI) reported total revenue of $176.5M. This represents a 3.7% decline compared to $183.2M in 2019.
Forafric Global PLC (AFRI) reported a net loss of $14.9M for the fiscal year ending 2025.
Forafric Global PLC (AFRI) reported an operating income of $-2.5M, resulting in an operating profit margin of -1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Forafric Global PLC (AFRI) generated $17.9M in gross profit for the year, representing a gross profit margin of 10.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative operating margins
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Structural Stagnation
According to the provided financial data, Forafric Global PLC experienced a 13.5% revenue increase in 2024Q2, yet this follows a highly erratic historical trend where quarterly revenue fluctuated significantly from a peak of $155 million in 2022Q2 to recent levels near $82 million.
The inconsistency in top-line performance suggests that the company struggles to maintain stable market share within its core Moroccan milling operations. Investors should monitor whether this volatility is a byproduct of seasonal wheat procurement cycles or a more concerning inability to secure consistent volume commitments from wholesale customers.
Commodity Exposure Constrains Margin Expansion
As reported in the income statement, Forafric Global PLC maintains a thin gross margin of approximately 11.3%, which reflects the company's position as a price-taker in the highly competitive and regulated agricultural commodity market where it operates with limited pricing power.
The structural reliance on low-margin bulk flour sales appears to prevent the company from achieving the profitability levels seen in more diversified consumer staple peers. Without a successful pivot toward higher-value branded products, the current margin profile may remain insufficient to cover the company's fixed operating costs.
Operating Leverage Remains Fundamentally Impaired
Based on the reported figures, the company's operating margin of -2.2% in 2024Q2 indicates that Forafric Global PLC is currently failing to achieve the necessary scale to amortize its fixed logistics and administrative overhead, resulting in persistent operating losses despite recent revenue growth.
The inability to generate positive operating income suggests that the company's current throughput levels are insufficient to support its existing infrastructure footprint. This lack of operating leverage warrants further investigation into whether the company's cost structure is too rigid for its current revenue base.
Non-Operating Costs Exacerbate Net Losses
Financial statements reveal that Forafric Global PLC consistently reports net losses significantly deeper than its operating losses, with a net margin of -7.7% in 2024Q2, suggesting that interest expenses and other non-operating items are placing a heavy burden on the bottom line.
The persistent gap between operating and net income implies that the company's capital structure may be inefficient or overly reliant on debt financing. Investors should be cautious of these recurring non-operating drains, as they continue to erode shareholder value regardless of operational performance.
Sustainability of Current Business Model
Analysis of the income statement suggests that the company's reliance on low-margin commodity milling, combined with a history of negative net income, raises significant questions regarding the long-term viability of its current operational strategy in the face of rising input costs.
Short-sellers would likely focus on the company's inability to achieve consistent profitability despite its integrated port-to-fork infrastructure. The persistent cash burn and reliance on external financing may indicate that the company's competitive moat is not yet translating into tangible financial returns for investors.