Forafric Global PLC (NASDAQ: AFRI)

Forafric Global PLC is an integrated global business involved in the purchase storage transport processing and sale of agricultural commodities and commodity products. The principal agricultural commodities handled are flour and semolina along with secondary processing products such as pasta and couscous. The company operates primarily in the African food market providing staple products such as flour semolina pasta and couscous to consumers across Europe Asia Africa and the Middle East. Its subsidiary Forafric Maroc combines the former family owned businesses Forafric Maymouna and Tria Group. The company has developed an extensive global logistics network including storage facilities with direct access to ports by rail. Forafric Global PLC sells processed commodity products to customers in approximately forty-five countries worldwide.

Forafric Global PLC generates revenue through the production and sale of a variety of wheat flours semolina pasta and couscous. The company's primary activities include the milling of soft wheat and durum wheat to produce flour semolina and related products. Revenue is derived from selling these processed commodity products to wholesale foods manufacturers and distributors. The company's two main brands in Morocco are Maymouna and Tria which are sold under various product lines including pastry flour extra white flour whole meal flour fine semolina course semolina and finette. Additionally Forafric Global PLC earns income from its logistics subsidiary Finalog which manages transport handling and storage activities for cereals and rents part of its facilities to other companies. The company also operates mills in Mali and Burkina Faso and owns PRODELA an animal feed processing company in Morocco that commercializes bran created by the mills.

The company operates through the following segments: Milling and Processing Secondary Processing Logistics and Trading.

• The Milling and Processing segment involves the operation of nine milling plants in Morocco with seven dedicated to common wheat and two to durum wheat providing a total processing capacity of 3,700 tons per day. This segment also includes two mills in Mali and Burkina Faso offering an additional capacity of 500 tons per day. Activities include the reception cleaning grinding and conditioning of wheat to produce flour semolina and related products. The segment benefits from a total milling capacity of 1,100,000 tons per year as of December 31, 2024 and 300,000 tons of grain storage facilities in Morocco.

• The Secondary Processing segment encompasses the production of pasta and couscous from semolina. This includes the transformation of durum wheat into semolina for use in couscous and pasta production. The segment supports the company's branded product lines such as Tria Dakik Mine Wh Moumtaz Tria Couscous De Qualite Superieure Tria Pates De Qualite Superieure and Tria Farine De Qualite Superieure. It also includes Maymouna's diversified range of soft wheat and durum wheat products including pastry flour extra white flour the baker whole meal flour finot fine semolina course semolina and finette.

• The Logistics and Trading segment involves the activities of the subsidiary Finalog based in Casablanca which manages transport handling and storage of cereals. Finalog has a capacity of 79,000 metric tons and a multimodal platform road rail linked to the port of Casablanca by rail. It has a daily reception capacity of 7,000 tons and 3,000 tons per day for delivery. The segment also includes the trading companies Forafric and Cerelis which aim to import and sell wheat to meet the group's raw material needs. Cerelis is based in Morocco and dedicated to serving the group's requirements while Finalog rents part of its facilities to other companies.

Forafric Global PLC is a leader in the Moroccan wheat milling market with a milling capacity of 3,700 tons per day compared to 3,000 tons per day in 2023. The company holds significant market share in key product categories including approximately 15% of the overall couscous market 28% of the packaged couscous market and 9% of the overall pasta market in Morocco through its Tria brand. Major competitors in Morocco include Moulins du Maghreb Zine Cereales Rica Maroc Casagrains and Dari Couspate. The company's competitive advantages stem from its strong bargaining power in raw material procurement due to high volumes its extensive logistics network its two leading brands Maymouna and Tria and its focus on productivity improvements across its nine milling plants in Morocco.

The company serves wholesale foods manufacturers and distributors as its principal purchasers. Forafric Global PLC sells its products to customers in approximately forty-five countries across Europe Asia Africa and the Middle East. The customer base includes industrial manufacturers of couscous and pasta as well as households and bakers who use products such as fine semolina for traditional preparations like baghrirs and msemens. The company's products are distributed through modern retail channels in polypropylene packaging and mass distribution in kraft paper while industrial clients receive bulk deliveries by tanker.