The Société Nouvelle Maison de la Ville de Tunis (SNMVT), which operates the Monoprix retail chain, has announced a significant increase in its net profit for the first half of 2026. The company's financial statements reveal a net profit of 4.627 million dinars (MDT), representing a 5.6-fold increase compared to the same period in 2025. This growth is largely attributed to the substantial dividends received from its subsidiaries.
The company's revenues for the first half of 2026 stood at 412.146 MDT, marking a 7.5% increase from 383.291 MDT in the same period of 2025. The gross margin also saw an improvement, rising to 74.999 MDT from 66.338 MDT, resulting in a margin rate of 18.20%, up from 17.31% in 2025. Despite this positive trend, the company's operational performance remains modest.
A closer look at the company's financials reveals that the bulk of its profit is generated from dividends received from its subsidiaries. These dividends, which amounted to 3.586 MDT in the first half of 2026, accounted for 77.5% of the company's net profit for the period. This reliance on subsidiary dividends has been a recurring theme, with African Manager previously highlighting this trend in May 2026.
The company's operational performance, while improved, remains fragile. The gross margin increase of 8.661 MDT was largely offset by a 6.106 MDT rise in personnel costs, which grew at twice the rate of revenues. As a result, the operating profit margin was limited to 0.91%, up from -0.13% in the same period of 2025. This narrow margin leaves little room for error.
The company's financial statements list ten subsidiaries, including MONOGROS, SGS TOUTA, and MMT, but do not provide a detailed breakdown of each entity's performance or dividend distribution. Consequently, the exact contribution of each subsidiary to the company's overall profit remains unclear.
The SNMVT's financial position has improved in other areas, with equity standing at 101.825 MDT as of June 30, 2026, up from 92.726 MDT in the same period of 2025. The company's net cash position also improved, rising to 16.650 MDT from 9.607 MDT.
Despite the improved financial performance, SNMVT's management has remained silent on the company's prospects and strategy. The company's general director, Seifeddine Ben Jemia, declined to comment on the financial results, leaving investors and analysts to interpret the data.
Key points
- Monoprix's parent company, SNMVT, reported a 5.6-fold increase in net profit for the first half of 2026, driven largely by dividends from its subsidiaries.
- The company's reliance on subsidiary dividends raises questions about the sustainability of its profit growth.
- SNMVT's operational performance remains fragile, with a narrow operating profit margin of 0.91%.
