Mauritian conglomerate Harel Mallac’s chemical units post mixed results for 2014
Harel Mallac subsidiaries listed on the Stock Exchange of Mauritius (SEM) — The Mauritius Chemical and Fertilizer Industry Limited (MCFI), Bychemex Ltd and Chemco Ltd — which constitute the chemicals segment of the group, posted a mixed result for year ended December 2014, as the slide in the Euro impacted export revenues. (Image: Composite)
Harel Mallac, a diversified Mauritian conglomerate involved in various key sectors, had its chemicals business units release their results for the financial year ended 2014, indicating a mixed performance.
Harel Mallac subsidiaries listed on the Stock Exchange of Mauritius (SEM) — The Mauritius Chemical and Fertilizer Industry Limited (MCFI), Bychemex Ltd and Chemco Ltd — which constitute the chemicals segment of the group, posted a mixed result for year ended December 2014.
MCFI, a provider of granular and fertilizers, was traded on the official market of the SEM with a closing price of Rs 22.60 today, and a market capitalisation of approximately Rs 497 million. The chemicals concern posted encouraging results for 2014, with a 36.3% increase in profit level to reach Rs 29.0 million on account of an increase in interest receivable coupled with turnaround results from associates.
The cash flow position of the company also improved during 2014. However, on the downward side, MCFI’s revenues were affected by lower sales volume on the local market which were partly offset by export resulting to turnover drop of 7.1% to stand at Rs 755 million.
Chemco, which operates more in the textile industry through the provision of chemicals for textile manufacturing, and also trades in tyres and air conditioners, was able to derive positive profits of Rs 8.8 million, representing an increase of 12.1%. This profitability was achieved upon solid operational progress across almost all its business lines, together with increased technical support to clients, which helped revenue levels to grow by 5.9% to Rs 324.3 million.
Chemco is listed on the Development and Enterprise Market (DEM), with a market capitalization of Rs 136.6 million and closed at Rs 22.00 at today’s trading session.
Another subsidiary of Harel Mallac, Bychemex which is also traded on the DEM of the SEM delivered a poor performance in 2014, upon delays in the renewal of the African Growth and Opportunity (AGOA) making export of Mauritian textile products to United States of America (USA) less favourable and less competitive amidst appreciation of the US dollar currency against the Mauritian Rupee, together with the slide of Euro currency.
These factors adversely impacted the performance of Bychemex whose turnover dipped by 2% to Rs 57.8 million over 2013 figures, resulting in profit levels of Rs 599,000, showing a significant drop of 55.5%. The company posted an earnings per share of Rs 0.12 and declared a dividend of Rs 0.70 per share for 2014.
Profile of Harel Mallac Group:
The Harel Mallac Group, with origins dating back to 1830, was incorporated in 1956 and listed on the Stock Exchange of Mauritius in 1991.
It is today a diversified Mauritian conglomerate involved in various key sectors: Chemicals, Agribusiness, Information Technology, Engineering, Printing, Travel and Leisure and Retail, among others.
Harel Mallac’s operations can currently be found in Mauritius, Madagascar, Zambia, Tanzania, Burundi and Rwanda.
Counted among the leading companies of Mauritius, it employs 1,435 employees in nearly thirty companies positioned in five strategic divisions, namely: Chemical Arm, Engineering Arm, Property Arm, Services Arm and Technology Arm.
Through these strategic arms, the group represents over 250 brands and offers a broad-based range of products and services.