Image Image Image Image Image Image Image Image Image Image Image Image

AfricaMoney | August 23, 2017

Scroll to top


No Comments

CIEL group sees revenues up 69% to Rs 8.5 bn & PAT up 92% to Rs 726 mn to Dec

CIEL group sees revenues up 69% to Rs 8.5 bn & PAT up 92% to Rs 726 mn to Dec

First semester revenue of Rs 8.5 bn was achieved basis strong momentum in the second quarter, placing it well on track to cross the MUR 15 billion revenue mark in 2015. (Image: CIEL)

Mauritius-based conglomerate CIEL notched a satisfactory financial performance for the first semester of 2014-2015 with group profit after tax up 92% to Rs 726 million, basis profitability improvement across most clusters.

On a consolidated revenue basis, the group registered revenues of Rs 8.5 bn, up 69% over the year ago period. This was achieved basis strong momentum in the second quarter, placing it well on track to cross the MUR 15 billion revenue mark in 2015.

“CIEL posted a strong first semester and is on track with its transformation plan. Almost all its investment sectors delivered improved contribution. Textile, Finance, Hotels & Resorts sectors are on an upward trend and showed resilience in very challenging market conditions. While these are likely to continue to prevail for the foreseeable future we are encouraged to further strengthen our organisation and move on with our development strategy,” noted its executive director and finance head, L J Jerome De Chasteauneuf.

The latest financial report acknowledges different segments for this satisfactory performance of CIEL; from the Textile segment a strong financial performance of the woven cluster mainly driven by the Asian operations was the key driver to the textile group’s profitability during the first half.

However, an adverse currency movement in Euro and South African Rand are source of concern in the short and medium term. With better cost management and sustained profitability from Asian operations though, the margin erosion is expected to be mitigated.

From an Agro and Property perspective, decreasing sugar price together with a shortfall in sugar volumes following a two weeks strike and lower harvest affected the first semester results of Alteo Ltd. However, the Tanzanian operations performed well during the period under review with higher sales volume compared to the corresponding period in the prior year.

Moreover, acquisition of a majority stake in Transmara Sugar Mill (Kenya) is expected to be completed in the coming months. In addition, Property   development at Anahita recorded a much improved performance due to increased activity while at Ferney Ltd, sale of land is progressing well.

Moreover, in the Hotel and Resorts segment, the occupancy rate at Sun Resorts Limited has improved by 16.3% leading an increase in turnover of 8.6% against the same period last year, while profit before tax on exceptional items stood at Rs 147 million in the corresponding period.

Furthermore the acquisition of a 50% stake in Anahita Hotel Ltd, which owns the Four Seasons Resort Mauritius, was successfully completed for Rs 926.4 million in December 2014. Also, the Rs 1.2 billion rights issue at Season Resorts Limited was fully subscribed at the end of January 2015, enabling the group deleverage, innovate and pursue its strategy.

Besides, the Financial Sector has improved its performance during the semester basis Bank One and MITCO results together with sustained financial performance from BNI in Madagascar leading to much improved financial results compared to the prior year. As for the healthcare segment, MSCL has posted an improved performance compared to the same period last year.

Also, CIEL Textiles, reported a 24% rise in profits to Rs 409.58 million for the first semester after an improved performance from its woven wear business.

Meanwhile, revenues went up to Rs 5.35 billion from Rs 5.016 billion a year ago.

“Order books in our Asian operations remain very strong, whilst sales and margins in the region are under pressure, particularly in the knitwear sector,” the firm said in a statement late on Friday.

Cost management measures are being taken to limit potential erosion of its profit margins due to the slide of the Euro and the rand, added the firm.

CIEL Textiles, which is listed on the Development and Enterprise Market (DEM), the secondary market on the Stock Exchange of Mauritius, said its earnings per share rose to 3.13 rupees from 2.50 rupees a year earlier.

About CIEL Group:

CIEL Limited is a leading diversified investment company in Mauritius, operating five business clusters spread across Mauritius, Africa and Asia with 26,500 employees. Since its beginnings in agriculture in 1912, the pioneering group is continuously exploring new avenues of development and international expansion.

In January 2014, CIEL was listed on the Official Market of the Stock Exchange of Mauritius (ticker symbol: “CIEL.N0000”), following the merger of one of its investment companies into the Group’s holding company.

With a market capitalisation of about MUR 11 billion (USD 360million), CIEL is one of the largest listed Mauritian companies. As at 30 June 2014, its portfolio was valued at 11.7 billion Mauritian rupees. Market capitalisation as at 30 September 2014 was 10.8 billion Mauritian rupees.

Submit a Comment

Directory powered by Business Directory Plugin