Mauritius’ CIEL Textiles sees profit up 12% on export boost
Supported by robust international operations, Mauritius-based clothing major CIEL Textiles saw profits and revenues increase by 12% for the first quarter ended 30 September 2013. (Image: ghtu.mu)
Mauritius-based clothing major CIEL Textiles has seen both profits and revenues increase by 12% for the first quarter ended 30 September 2013, supported by robust international operations.
Compared to the corresponding quarter last year, group turnover and profits after tax grew around 12% each. Revenue for the quarter went up from Rs 2.48 billion to Rs 2.77 billion while profit after tax increased from Rs 153.37 million to Rs 171.82 million over the three month period from July to September 2013.
For the first quarter, the Knitwear cluster (‘Knits, Knitwear and Retail’) rang in the maximum contribution. Across segments, the Knitwear cluster emerged a clear leader with Rs 1.5 billion and Rs 116.83 million worth of revenue and profit generated respectively, while the Woven segment generated Rs 1.2 billion sales but profit after tax of only around Rs 55 million.
Looking forward, the company noted with concern that Madagascar, where it has a production line, is under close observation for its political situation, the country having been in a state of political turmoil since 2009.
Meanwhile, fellow group company CIEL Investments Ltd (CIL) continued to struggle, with revenues dipping 12% to Rs 188.27 million in the first six months ended September 2013, compared to Rs 214.97 million in the year-ago period.
Further, losses deepened for the investment group, as it declared an almost two-fold increase in pretax losses to Rs 112.18 million (post tax: Rs 122 million), for the six months ended September 2013, compared to Rs 68.43 million (post tax: Rs 76.6 million) in the year-ago period.
In terms of sector-wise distribution of funds, CIL looks at investments across tourism, healthcare, property and financial services. Of these, the funds contributing the most to its portfolio valuation (Rs 1.46 billion and Rs 1.37 billion respectively) and bottomline (Rs 81.30 million and Rs 14.30 million respectively) are the financial services and property segments, in that order.
The company noted that the deepening losses arose as this six month period corresponds with the low season of the hospitality sector. This has had a negative impact on the results of the group, as the ‘leisure and tourism’ segment contributes a portfolio value of Rs 1.2 billion compared to total portfolio value of Rs 4.8 billion, and has logged in Rs 193.20 million worth of losses, comparing poorly with the other segments contributing a similar portfolio value.
In an important development, the board of CIL has recommended to shareholders the amalgamation of the company into Deep River Investment Limited (DRI). Effective January 24, 2014, all CIL shares will be cancelled and shareholders will receive ordinary shares in DRI (in an exchange ratio of 0.7350 shares of DRI for 1 share in CIL). The amalgamated company is to be rebranded CIEL and a special meeting of shareholders will be held on December 30, 2013 to approve the amalgamation.
CIEL Groupis a leading industrial and investment group of 22,000 employees, based in Mauritius since 1912. The conglomerate has operations in the Indian Ocean, Sub- Saharan African and Asian regions and is structured around two clusters, CIEL Textile and CIEL Investment.
A world-class clothing retailer with renowned brands such as Harris Wilson, Blu River and Floreal Boutique under its belt, CIEL Textiles has subsidiaries in Madagascar, India, and Bangladesh. Its export destinations are spread across the globe, covering Europe (60% of export production), India and South Africa (25%), and USA (15%). Benetton, Marks and Spencer, Zara, Hugo Boss and Esprit are just some of the customers that CIEL Textiles boasts of, supported by high production levels reaching 30 million garments per year.
With a portfolio of investments amounting to around Euro 126 million, CIEL Investment has focused interests in important sectors of the Mauritian economy such as tourism, leisure, financial services, investment, property, healthcare and life sciences. Managed as a long-term investment fund, it has achieved a rapid growth through primarily Mauritius equity and equity-related investments, and reached an IRR over 40% in dollar terms over the past twenty years.
Source: Company Website