Lux* Island Resorts ups profit 51.6% in nine months ended March 31
Also, the turnover of the hospitality major for the nine months ended March 31, 2014 increased by 10% to reach Rs 3.3 billion from Rs 3 billion a year ago. (Image: Lux Resorts)
Mauritius’ leading hospitality chain Lux* Island Resorts saw group profit before tax rise 51.6% to Rs 360.36 million for the nine months ended March 31, compared to Rs 237.62 million for the same period last year.
Also, the turnover of the group for the nine months ended March 31, 2014 increased by 10% to reach Rs 3.3 billion from Rs 3 billion a year ago.
These strong results have been driven by solid RevPAR (revenue per available room) growth from Lux* Resorts operations both in Mauritius and Maldives, with a rise of 4.0% and 7.0 % respectively across the two islands where the hospitality major is present.
And, the increase in profit was achieved despite a 1% decrease in tourist arrivals to Mauritius, which numbered 263,716 for the nine months ended March 31, 2014 compared to 265,838 for the same period last year.
The reason behind this drop in footfalls was decline in arrivals from the main European markets of France and UK which were down by 4 % and 5% respectively. Besides, Reunion Island also showed a decrease of 5% in tourist arrivals to Mauritius.
Fortunately, the drop in arrivals from the traditional market was compensated by arrivals from China which doubled to reach 18,034 tourists compared to last year’s figures.
Overall, despite the drop in the number of arrival from traditional markets, Lux* Resorts remain optimistic on its financial performance for the year with the combination of the newly launched TUI Dreamliner from the UK and the daily A380 service from Emirates which together eased long-standing air connectivity issues.
Moreover, the anticipated increased capacity on the Air Mauritius China routes, coupled with the recently announced China Southern weekly service from Shenzen, will further support the already successfully implemented market diversification.
The board also noted that, despite difficult trading conditions and the Easter holidays falling in April this year, the group pulled in a strong performance in the third quarter, with profit before tax reaching Rs 214.8 million, an increase of 6% on last year.
Furthermore, the LUX* 2016 Strategic Plan, which is to enhance the guest experience and offer amazing value, will enter the final phase with the completion of the remodeling project at LUX* Belle Mare, which will start on July1, 2014, to prepare for which the property will be closed for two months.
Concerning the global development strategy, Lux* management commented that the project at Ajman, UAE, is progressing well and the growing demand for the region is encouraging for the future. The resort chain has also signed agreements with Chinese tourism company Lijiang Yulong Tourism Corporation Ltd, to manage a series of boutique hotels in the Greater Shangri-La region, in the South Western part of China.
Overall, providing there is no significant deterioration in the environment, management expressed confidence that the profit before taxation for the full financial year ending June 30, 2014 with continued operations will improve significantly over last year, and be enhanced by the re-opening of LUX* Belle Mare in September 2014.
Finally, the management noted that a dividend of Rs 0.50 per share had been declared in respect of the financial year ending 30 June 2014, to be paid on or about 23 June 2014 to all shareholders.