The State Trading Organization – the country’s largest state-owned enterprise – reports generating a net profit of MVR 1,087 million (MVR 1.09 billion) in 2023 for the STO Group.
Marking a growth of over MVR 14 million (1.39%), STO Group reports its 2023 net profit is the highest-ever in the group’s history. In 2022, the Group reported earning a net profit of MVR 1.07 billion.
Despite earning the highest-ever net profit in STO history; its revenue however, saw an MVR 1.99 billion decline last year. The STO Group revenue dropped from MVR 19.06 billion in 2022 to MVR 17.07 billion last year.
Although the group’s revenue in 2022 was comparatively higher than that of 2023 earnings, the company’s cost of sales for 2022 was significantly higher resulting in the drop in gross profit and the subsequent drop in net profit as well.
In 2022, STO Group’s cost of sales was reported at MVR 16.36 billion, compared to MVR 13.56 billion last year. Besides this, the group’s administrative expenses dropped to MVR 897.6 million last year from MVR 1.05 billion in 2022 – a reason for the growth in the group’s operating profit in 2023.
STO Group reported a gross profit of MVR 3.51 billion last year – a 29.5% increment from MVR 2.71 billion in 2022.
Similar to gross and net profit, STO Group’s operating profit increased last year as well reaching MVR 1.59 billion from MVR 1.46 billion in 2022.
STO individually, reported generating a revenue of MVR 16.4 billion last year – a drop of MVR 1.84 billion (-10.1%) from MVR 18.2 billion in 2022. The operating profit of the company reached MVR 1.28 billion, an MVR 242 million growth from MVR 1.03 billion in 2022.
The primary reason for STO’s growth in its profit categories last year is owed to the decline in cost of sales and administrative expenditure.
While STO Group reported a net profit of over one billion Rufiyaa in 2023, the company’s individual net profit had reached MVR 818 million last year – which is a growth of MVR 90 million from MVR 728 million in 2022.
STO Group Revenue (by Business Activity)
- Fuel – MVR 12.99 billion (-3.4%)
- Trading – MVR 2.92 billion (-4.01%)
- Insurance – MVR 519 million (+19.04%)
- Shipping – MVR 376 million (+22.08%)
- Gas – MVR 252 million (+13.0%)
Additionally, STO Group’s Construction Segment generated a revenue of MVR 647 million last year – a 15.1% decline from MVR 762 million in 2022. STO reported the group’s construction segment faced a challenging year in 2023, with a decrease in revenue driven by various market factors.
On the other hand, revenue from Medical Services grew by 6.5%, reaching MVR 1.31 billion last year from MVR 1.23 billion in 2022.
Revenue from STO People’s Choice saw a 6.5% decline, registering a revenue of MVR 958 million last year from MVR 1.03 billion in the year before. The Group’s People Choice segment is focused on providing staple food, household appliances, electronics and essential food across the Maldives.
The STO Group states it maintains an objective of achieving a gross profit growth of over 8% year-on-year, a return on equity exceeding 13%, and annual sales volume growth over 6%, adding these targets ensure “long term profitability and sustainability”.
The Group has also begun prioritizing digitalization and sustainability efforts to execute its strategic initiatives in line with global trends.