Casablanca, Oct 8 - Moroccan conglomerate ONA is studying an overhaul to be unveiled in March that will adapt to economic change and focus on industries with the biggest potential, the company's new chairman said on Tuesday.
Presenting the group's first results since predecessor Saad Bendidi was fired in April, chairman Mouatassim Belghazi said the group needed a clear, coherent vision and better corporate governance and that the new strategy could involve asset sales.
ONA, controlled by Morocco's royal family, has a stake in many of the north African country's most lucrative businesses including banking, insurance, supermarkets, food, mining and car distribution.
"This new vision and strategy should refocus the group on the areas it masters or those we envisage developing in coming years to avoid being spread across businesses in which ONA's added value is limited," Belghazi told reporters and analysts in Casablanca.
The new structure would address questions raised in recent years over ONA's international development, the balance of its varied activities and the speed of the group's development, he said, without giving details of specific planned changes.
The wide variety of ONA's interests helps iron out any volatility in the results of its various holdings but makes it harder for financial markets to assess its performance, clouding the earnings outlook.
Analysts also say its conglomerate structure could make diminishing sense in coming years as Morocco gradually lowers external trade barriers and its various businesses face more competition from big foreign competitors.
Company executives pointed to improvements in several problem areas over the past year.
Mining arm Managem benefited from soaring prices of cobalt and precious metals and table oil producer Lesieur Cristal recovered from heavy price pressure.
Sugar producer Cosumar saw net profit more than double after the turnaround of inefficient former state-owned sugar refineries acquired in recent years.
Wana, the telecom venture that was the cause of Bendidi's departure, boosted mobile and Internet clients and is now gearing up for a new mobile license bidding round.
Commenting on a target for full-year sales of 40 billion Moroccan dirhams ($4.85 billion) set by his predecessor. "We will approach this figure, but you well know there are adjustments taking place over the year," he said.
Company officials said they were working to reduce ONA's debt ratio by selling some assets including fisheries arm Marona and reducing exposure to certain financial instruments counted as debt under new International Financial Reporting Standards.
They said the company also planned to list some units that were yet to be identified.
ONA said on Sept. 30 that its first-half net profit fell 13 percent from a year earlier, when results were boosted by a one-off gain from the sale of a stake in insurance venture Axa-ONA.