Morocco's Cosumar 2008 net profit grows 17 pct

RABAT, March 25 (Reuters) - Moroccan sugar producer Cosumar (CSMR.CS) reported a 17 percent increase in 2008 net income on Wednesday and said the turnaround of former state sugar refineries was boosting profitability.

Net earnings grew to 500.1 million dirhams ($60.8 million) from 429.2 million, with sales up 4.3 percent to 5.7 billion dirhams, the company said in a statement.

Cosumar, 55 percent owned by conglomerate ONA (ONA.CS), is working to improve the performance of refineries acquired from the state and investing 1.6 billion dirhams over five years to expand cane and beet growing and improve industry performance.

The company said investments grew last year to 691 million dirhams from 205 million dirhams in 2007 and that projects underway would lead to a "significant improvement" in competitiveness.

Cosumar gave no results forecast for 2009 but said an expected increase in world prices of raw sugar could hit refining activity.

Heavy rains in Morocco in recent months bode well for the north African country's sugar crop, it said.

Cosumar's shares are up 19 percent this year after soaring 39 percent in 2008. The shares closed at 1,400 dirhams on Tuesday. (Reporting by Tom Pfeiffer; Editing by Sharon Lindores)

($1=8.224 Moroccan Dirham)