EEM Returns to Profit in 2025, Boosted by Two Non-Recurring Items
Electricité et Eaux de Madagascar closed the 2025 fiscal year with a consolidated net profit of €2.8M, following a loss of €7.2M in 2024. According to the release, this profit mainly stems from two non-recurring items: the reversal of a €3.2M provision due to the resolution of the Victoria Angkor tax dispute and the recognition of a €3.2M income from the expiration of certain debts. Meanwhile, the current operating result remains negative at -€435K, indicating that the net result improvement does not reflect a complete operational turnaround.
Overview of Financial Performance
On a consolidated basis, EEM recorded a profit of €2.8M in 2025 compared to a loss of €7.2M in 2024. This €10M change over two years suggests an apparent improvement. However, the group explicitly states in its release that the 2025 consolidated profit primarily arises from two non-recurring sources: the reversal of a previously established provision of €3.2M following the end of the Victoria Angkor tax dispute, and the recognition of a €3.2M income from the expiration of certain debts. These two exceptional items total €6.4M, well beyond the displayed net profit. The consolidated net asset value per share stands at €2.37, slightly up from €1.93 in 2024.
Behind the Profitability Facade
Behind this facade of a return to profitability lies a concerning operational reality. The current operating result remains significantly negative at -€435K in 2025, compared to -€9.0M in 2024. Although the deficit has decreased in absolute terms, this relative improvement is not sufficient to indicate a sustainable correction. For its social activities, EEM recorded a revenue of €248K in 2025, compared to €276K in 2024, representing a contraction of 10.2%. Concurrently, the social operating result worsened to -€2.4M from -€2.1M a year earlier. These figures illustrate the operation of a structure largely in deficit in its ordinary activity.
Public Acquisition Offer and Legal Developments
Since July 2025, EEM has been facing a mandatory public acquisition offer launched by SAS Le Clézio Industrie at €1.50 per share. The Board of Directors, unanimously convened on December 15, 2025, issued a motivated unfavorable opinion, considering the price significantly lower than the net book asset and lacking interest for minority shareholders. According to the independent expert Ledouble, mandated by the group, the proposed price undervalues the assets. On the operational front, a major decision occurred with the rejection by the Battambang Court of Appeal of Pierre Ader's request for rent payments and the termination of the lease of the Victoria Angkor Resort & Spa hotel. This event allowed for the reversal of the previously established provision and explains the accounting recovery observed in 2025.
