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AfricaMoney | August 21, 2017

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Financial year 2013-2014: GML sees net Profit of Rs 3 billion

Financial year 2013-2014: GML sees net Profit of Rs 3 billion

GML is not resting on its laurels in spite of the excellent results obtained, and for Arnaud Lagesse, Mauritius’ political decision-makers should take measures to power the Mauritian economy in the right direction.( Image: Company)

The first Mauritian conglomerate, GML, has registered a very satisfactory performance during the financial year 2013-2014 with recorded net profits of Rs 3 billion, which shows an increase of 152%, compared to Rs 1.2 billion in 2012-2013.

This increase in profitability is partly due to the contribution of exceptional items of the order of Rs 1.6 billion.

If the turnover has slightly increased from Rs 31.2 billion to Rs 31.3 billion, on the other hand the gross margin of the Group has improved by some 5%, from Rs 7.7 billion to Rs 8.1 billion.

In addition to this good news follows that of a 15% decrease of the group debts from Rs 14 billion to Rs 12,7 billion.

Chief Executive Officer of GML, Arnaud Lagesse, has explained that these results are not a matter of chance.

“The group management has worked hard on the reforms and development of new opportunities,” he said.

The operating profit of Rs 2.2 billion has increased by Rs 80 million and this in spite of an increase in administrative burden.

Financial charges are for their part decreasing, due essentially to the debts reduction of the companies of the Group.

As for the total assets, they were estimated at approximately Rs 47 billion as at June 2014, representing an additional Rs 4 billion compared to 2012-2013.

However, according to the CEO of GML, it is important that the Group continues its investment policy on the African continent because of new opportunities.

“Our group is resolutely turning to Africa, where macroeconomic perspectives remain favorable due to an average growth rate which remained around 4% in 2013,” said Arnaud Lagesse.

“This performance is superior to the 3% growth registered by the global economy and demonstrates once again the strength of the continent in front of international and regional turbulences,” he further added.

For his part, the chairman of the board of Directors of GML Investment Ltd, Jan Boullé, also agreed that the African continent is now the place to be for doing business.

“For a long time the African continent was considered risky for doing business but now Africa has revealed new opportunities to the Mauritian companies,” Jan Boullé said.

GML has been listed this year among the most dynamic and most high-growth companies in Africa according to the World Economic Forum.

Jan Boullé welcomed the outcome obtained by the Group which is due, according to him, to the difficult but beneficial decisions taken during this financial year.

“The fact that we have succeeded in reaching a turnover of more than Rs 31 billion and a profitability of Rs 3 billion against a backdrop of global financial crisis reveals the importance of choices and strategic priorities in our subsidiaries, which have to make a commitment in a clear and bold direction,” said Jan Boullés.

The management of GML is of the opinion that this strategic clarity is essential to accelerate the innovation and the penetration of the Group in source market, generating satisfactory performances, both operational and financial.

The 2013-2014 exercise demonstrated that GML has strengthened, that it is solid and diversified, not only in Mauritius but also in the region.

The growth achieved was encouraged by strong results registered in different areas of activity, in particular the hotel industry, despite a very competitive business environment, through LUX* Resorts which has registered a strong progress in its profit margin. There is also the excellent performance of AfrAsia Bank in the banking sector.

Moreover, GML is not resting on its laurels in spite of the excellent results obtained and for Arnaud Lagesse, Mauritius’ political decision-makers should take measures to power the Mauritian economy in the right direction.

“To enable Mauritius to enter the category of high-income countries, the authorities will again have to solve a number of existing problems in order to strengthen the competitiveness and the confidence of investors,” concluded Arnaud Lagesse.

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