Best-Performing African Public Companies 2015

African Gems | Alexandria Container and Cargo tops Global Finance’s first annual ranking of the 25 Best-Performing Companies in Africa.

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Methodology

The 25 Best-Performing Public Com-panies in Africa ranking evaluates nonfinancial companies on four measures: liquidity, solvency, return on assets and profit margin. The ranking begins with the top 300 companies by market capitalization.

Firms are given a score on each measure, and those figures are totaled to create an overall score. A low score on each measure is equated with best performance, and the company with the lowest overall score places highest in the ranking.

African Gems

Egyptian transportation company Alexandria Container and Cargo tops Global Finance’s first annual list of the 25 Best-Performing Public Companies in Africa. The firm scored well on all four of the criteria used to determine performance: liquidity, solvency, return on assets (ROA) and profit margin. It scored in the top 5 on all of these measures.

BEST-PERFORMING COMPANIES

Rank	Company	Country	Sector	Liq. Ratio	Lev. Ratio	Return  On Assets	Profit Margin (%)	Total Score
1	ALEXANDRIA CONTAINER AND CARGO.	EG	Transport	6.00	89.86	37.33	59.31	13
2	COMPAGNIE MINIERE DE TOUISSIT	MA	Metals & metal products	4.27	81.11	20.24	49.35	46
3	TRUWORTHS INTERNATIONAL	ZA	Wholesale & retail trade	4.35	82.24	29.79	31.39	51
4	SWISSPORT TANZANIA	TZ	Transport	2.67	71.87	46.54	42.06	67
5	EGYPTIAN SATELLITE	EG	Post & telecom	5.76	77.98	14.89	38.32	72
6	ASSORE	ZA	Metals & metal products	2.37	92.06	21.13	25.26	73
7	SOCIETE METALLURGIQUE D’IMITER	MA	Metals & metal products	5.74	87.99	13.59	31.20	74
8	SIDI KERIR PETROCHEMICALS	EG	Chemicals, rubber, plastics, non-metallic products	1.75	68.29	25.31	47.77	102
8	ABU KIR FERTILIZERS & CHEMICAL INDUSTRIES	EG	Chemicals, rubber, plastics, non-metallic products	2.06	65.46	27.79	41.38	102
10	ALEXANDRIA MINERAL OILS COMPANY	EG	Primary sector	4.63	85.86	21.95	10.92	123
11	SOCIETE LES CIMENTS DU MAROC	MA	Chemicals, rubber, plastics, non-metallic products	1.81	84.24	10.71	29.67	125
12	MISR CEMENT COMPANY – QENA	EG	Chemicals, rubber, plastics, non-metallic products	1.50	63.94	27.58	39.09	132
13	METROFILE HOLDINGS	ZA	Other services	1.51	70.09	19.11	30.35	133
14	SPUR CORPORATION	ZA	Hotels & restaurants	1.57	70.41	18.47	26.85	136
14	REUNERT	ZA	Machinery, equipment, furniture, recycling	2.23	66.09	20.56	23.15	136
16	EGYPTIAN INTERNATIONAL PHARMACEUTICALS	EG	Chemicals, rubber, plastics, non-metallic products	1.46	78.22	12.94	29.64	137
17	TANZANIA CIGARETTE COMPANY	TZ	Wholesale & retail trade	1.14	72.16	27.74	34.06	138
18	FAMOUS BRANDS	ZA	Hotels & restaurants	1.25	76.51	25.15	20.69	142
19	AFRICAN RAINBOW MINERALS	ZA	Metals & metal products	1.62	77.35	9.02	37.75	145
20	LAFARGE ZAMBIA	ZM	Chemicals, rubber, plastics, non-metallic products	1.28	58.99	21.46	46.99	155
21	EGYPTIAN CHEMICAL INDUSTRIES	EG	Chemicals, rubber, plastics, non-metallic products	30.37	97.26	4.43	32.64	160
22	LEWIS GROUP	ZA	Wholesale & retail trade	4.12	69.28	9.99	20.49	164
22	MR PRICE GROUP	ZA	Wholesale & retail trade	1.81	63.82	29.15	17.92	164
24	CANAL SHIPPING AGENCIES	EG	Transport	2.24	70.05	6.88	54.24	165
25	ITALTILE	ZA	Wholesale & retail trade	0.95	82.20	18.76	25.39	175
Source For Data: Orbis By Bureau van Dijk

Ranking second is Cie Minière de Touissit—the second-largest mining company in Morocco, which focuses on silver, lead and zinc mining. The company scored well overall in our rankings, and in the top 10 for both liquidity and profit margin.

Coming in third is retailer Truworths International of South Africa, listed on the Johannesburg Stock Exchange, which boasts 650 fashion outlets in South Africa and 40 more across the continent. Truworths came in third for liquidity and sixth for ROA.

The Tanzanian arm of global cargo handling firm Swissport—listed on the Dar es Salaam Stock Exchange—ranks fourth in the list, with a particularly strong showing in return on assets (in which the firm ranked first).

By sector, Sidi Kerir Petrochemicals of Egypt leads the chemicals and related industries, with a strong ranking in both ROA and profit margin. Coming first in the construction segment is residential builder Calgro M3. In addition to performing well in our ranking, the black-empowered property developer focuses on the creation of sustainable communities.

Next Page: Best Performing Companies By Sector

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BEST-PERFORMING COMPANIES BY SECTOR

Rank	Company	Country	Liquidity Ratio	Leverage Ratio	Return  On Assets	Profit Margin (%)	Total Score
Chemicals, Rubber,Plastics, Non-Metallic products
1	SIDI KERIR PETROCHEMICALS	EG	1.75	68.29	25.31	47.77	102
2	ABU KIR FERTILIZERS AND CHEMICAL INDUSTRIES	EG	2.06	65.46	27.79	41.38	102
3	SOCIETE LES CIMENTS DU MAROC	MA	1.81	84.24	10.71	29.67	125
4	MISR CEMENT COMPANY – QENA	EG	1.50	63.94	27.58	39.09	132
5	EGYPTIAN INTERNATIONAL PHARMACEUTICALS	EG	1.46	78.22	12.94	29.64	137
Construction
1	CALGRO M3	ZA	0.76	43.50	10.95	17.87	387
2	TALAAT MOUSTAFA GROUP	EG	1.36	47.62	1.19	21.66	393
3	PALM HILLS DEVELOPMENTS	EG	1.21	27.79	2.38	16.51	474
4	WILSON BAYLY HOLMES – OVCON	ZA	1.22	36.31	3.16	2.21	543
5	GROUP FIVE	ZA	1.14	27.11	4.04	4.36	546
Food, Beverages, Tobacco
1	PHOENIX BEVERAGES	MU	1.22	75.58	14.52	14.74	197
2	SOCIETE FRIGORIFIQUE ET BRASSERIE DE TUNIS	TN	1.25	63.96	13.15	18.46	216
3	NAMIBIA BREWERIES	NA	1.11	60.45	13.34	14.17	262
4	FAN MILK	GH	1.17	65.39	12.15	12.19	263
5	DELTA SUGAR	EG	0.72	75.11	12.43	19.06	279
Gas, Water, Electricity
1	AIR LIQUIDE DE TUNISIE	TN	1.56	57.01	9.75	14.96	263
2	LYONNAISE DES EAUX DE CASABLANCA	MA	n.a.	100.00	1.59	90.41	385
3	KENYA ELECTRICITY GENERATING	KE	1.07	30.66	1.13	23.00	480
4	UMEME	UG	0.96	25.89	5.82	10.28	506
5	KENYA POWER & LIGHTING	KE	0.73	24.63	2.93	9.12	599
Hotels & Restaurants
1	SPUR CORPORATION	ZA	1.57	70.41	18.47	26.85	136
2	FAMOUS BRANDS	ZA	1.25	76.51	25.15	20.69	142
3	TRANSCORP HOTELS	NG	1.45	74.33	4.63	30.06	237
4	CITY LODGE HOTELS	ZA	1.53	33.21	16.28	35.62	255
5	GOLDEN PYRAMIDS PLAZA	EG	1.34	53.99	6.94	41.85	262
Metals & Metal Products
1	COMPAGNIE MINIERE DE TOUISSIT	MA	4.27	81.11	20.24	49.35	46
2	ASSORE	ZA	2.37	92.06	21.13	25.26	73
3	SOCIETE METALLURGIQUE D’IMITER	MA	5.74	87.99	13.59	31.20	74
4	AFRICAN RAINBOW MINERALS	ZA	1.62	77.35	9.02	37.75	145
5	KUMBA IRON ORE	ZA	0.63	53.05	21.07	39.37	303
Post & Telecommunications
1	EGYPTIAN SATELLITE	EG	5.76	77.98	14.89	38.32	72
2	TELECOM EGYPT	EG	1.98	84.65	6.28	25.03	181
3	SOCIETE NATIONALE DE TELECOMMUNICATIONS DU SENEGAL	SN	0.99	58.59	17.17	38.37	220
4	MTN GROUP	ZA	1.23	52.60	12.65	33.92	237
5	VODACOM GROUP	ZA	0.91	30.35	17.77	23.07	349
Primary Sector
1	ALEXANDRIA MINERAL OILS	EG	4.63	85.86	21.95	10.92	123
2	AFROCENTRIC INVESTMENT	ZA	2.54	71.99	9.85	12.58	198
3	OCEANA GROUP	ZA	1.62	58.71	19.29	17.38	199
4	SEPLAT PETROLEUM DEVELOPMENT	NG	1.85	55.93	9.68	32.55	211
5	MASTER DRILLING GROUP	ZA	1.22	67.79	9.91	19.74	228
Transport
1	ALEXANDRIA CONTAINER AND CARGO	EG	6.00	89.86	37.33	59.31	13
2	SWISSPORT TANZANIA	TZ	2.67	71.87	46.54	42.06	67
3	CANAL SHIPPING AGENCIES	EG	2.24	70.05	6.88	54.24	165
4	GRINDROD	ZA	2.70	53.29	3.23	8.99	390
5	TRENCOR	ZA	1.23	31.93	1.78	25.68	428
Wholesale & Retail Trade
1	TRUWORTHS INTERNATIONAL	ZA	4.35	82.24	29.79	31.39	51
2	TANZANIA CIGARETTE	TZ	1.14	72.16	27.74	34.06	138
3	LEWIS GROUP	ZA	4.12	69.28	9.99	20.49	164
4	MR PRICE GROUP	ZA	1.81	63.82	29.15	17.92	164
5	ITALTILE	ZA	0.95	82.20	18.76	25.39	175
Source For Data: Orbis By Bureau van Dijk

Phoenix Beverages of Mauritius tops the ranking for food, beverages and Tobacco, and Tunisia’s Air Liquide Tunisie comes first in the gas, water and electricity segment. In the hotels and restaurants sector, it is steakhouse franchise Spur Corporation of South Africa that leads the pack. The company boasts a big international presence—particularly in the UK. Egyptian Satellite and Telecom Egypt rank first and second, respectively, for post and telecommunications companies, and Alexandria Mineral Oils, also of Egypt, tops the ranking for the primary sector.

PERFORMANCE RISKS

African public companies are dealing with a number of risks that could have a significant impact on their performance over the rest of the year. In particular, they will be facing volatility related to a continued commodity price decline, uncertainty over the timing and impact of a US Federal Reserve rate hike, and the slowdown in China.

Some African countries are very exposed to China, particularly Angola. The Southern African nation relies heavily on Chinese state-owned enterprises for infrastructure developments, and China is its biggest export partner—taking more than 60% of Angolan exports (especially oil and iron), according to MIT’s Observatory of Economic Complexity.

Most African frontier markets are actually oil importers. In fact, the vast majority of countries on the continent benefit, overall, from lower oil prices. The notable exceptions are Angola, Nigeria and the handful of other major oil producers.

Currency volatility is a critical issue for companies in Africa. Currency weakness has dogged a number of markets and continues to be of concern.

Philippe de Pontet, director, Africa, at Eurasia Group, notes that “The cedi of Ghana has lost over 50% of its value over the last calendar year. Likewise, the Zambian kwacha is under extreme stress—mostly because of global economic conditions but, more specifically, the fall in copper prices.”

De Pontet added: “Clearly for local companies—and multinational companies on the ground—it is a tremendous headache dealing with uncertainty over the exchange rate.” He notes that quite a few African countries are still pegged to the euro, so they are exposed to its fluctuations. But the euro and dollar fluctuate much less than indigenous African currencies. “Those monetary systems that are pegged either to the dollar or euro might be better positioned than some others.”

Rising inflation is also a concern for corporates, with Nigeria, for example, likely to breach double-digit inflation by the end of the year.

The risk surrounding a US interest rate hike is the same as that faced by companies—and countries—worldwide: uncertainty as to timing and increased borrowing costs. De Pontet notes: “It is likely we will see, at least in the immediate aftermath [of a rate hike], a spike in yields in frontier markets, almost irrespective of the country.”